Union Budget 2024: Why was a mini economic survey presented during Interim Budget?

Economic Survey 2024: Union Finance Minister Nirmala Sitharaman is scheduled to present the Economic Survey 2023-24 on the first day of the monsoon session of Parliament, which is  on Monday, July 22. Traditionally, the Economic Survey is released on January 31, preceding the Union Budget presentation for the upcoming financial year.

In election years such as 2024, a modified approach was adopted, wherein a concise report titled "The Indian Economy - A Review" is presented, alongside an interim budget in February. Following the dissolution of Parliament and the electoral processes, the newly-formed government unveils an elaborate Economic Survey and Budget 2024 for the fiscal year.

The Economic Survey of India is an annual document presented by the government that offers a comprehensive review of the economy's performance over the previous year and provides valuable insights into its short-to-medium-term prospects. This document serves as a detailed report card on the Indian economy, strategically presented to Parliament before the examination of the national budget.

The Economic Survey is a document prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance. It is formulated under the supervision of the chief economic adviser.

The Economic Survey has three sections:

> Overview and CEA Perspective: This segment provides valuable insights into significant economic issues and articulates the government's perspective on the country's financial status.
> Sectoral Data and Figures: This section includes data on various sectors of the economy, meticulously provided by the respective departments and ministries.
> Macroeconomic Statistics: Encompassing national income, production, employment, inflation, balance of trade, export-import trade, and other essential economic indicators, this section offers a comprehensive view of the economy's overall performance.

The Mini eco survey noted the following points: 

1. V Anantha Nageswaran, Chief Economic Advisor, said the the Indian economy will achieve a growth rate at or above 7 per cent for FY24. He said: “It now appears very likely that the Indian economy will achieve a growth rate at or above 7 per cent for FY24, and some predict it will achieve another year of 7 per cent real growth in FY25 as well. If the prognosis for FY25 turns out to be right, that will mark the fourth year post-pandemic that the Indian economy will have grown at or over 7 per cent.”

2.  The survey noted the economy has created jobs in the last two years since Covid times. “The economy has created jobs; the unemployment rate has declined considerably from the peaks during Covid times. The labour force participation rate has increased, especially that of women. Net new subscribers to the Employee Provident Fund (EPF) have steadily risen post Covid, especially among the younger population," it noted.

3. Indian exports are in a strong upswing, with its merchandise exports reaching the highest ever at over $450 billion in FY23. 

4. India met its targets of building non-fossil fuel-installed electricity capacity, reaching 43.9% in November 2023.

5. Agriculture
> From FY15 to FY23, the sector grew at an average annual rate of 3.7%, which was higher than the 3.4% growth from FY05 to FY14. In comparison to the prior year, the sector expanded by 4.0% for the FY23 year.
> Active promotion of digital inclusion and mechanization has improved productivity. Digital platform e-NAM (National Agriculture Market) has facilitated the integration and optimised various intermediatries in the value chain. 

6. Digital Public Infrastructure
> India’s robust Digital Public Infrastructure has transformed the authentication ecosystem.
> The cost of conducting e-KYC has been reduced from INR 1000 to INR 5.
> India has also enabled online, paperless, and cashless digital access to various public and private services. 

7. Women's Development
> Women’s required representation in panchayats has increased funding for public goods like drinking water and public roads that are directly related to the concerns of women.
> The Gross Enrollment Ratio (GER) for women in higher education has quadrupled from 6.7% in FY01 to 27.9% in FY21, while the overall GER has more than doubled from 24.5% to 58.2% between FY05 and FY22.
> Female Labour Force Participation Rate (LFPR) rose from 23.3% in 2017–18 to 37% in 2022–23, reflecting a growing shift towards women-led development in India.
> Through programs like the Skill India Mission, Start-Up India and Stand-Up India, female participation is also growing in human capital formation.
With the PM Jan-Dhan Yojana, a national financial inclusion scheme, women bank account holders have increased from 53% in 2015–16 to 78.6% in 2019–21.

8. Trade and Investments 
> The public sector capital investment has surged in the last 10 years. 
> India continues to remain a preferred destination among foreign investors, owing to its young workforce and large middle-class population. In this regard, the government has taken several measures such as opening FDI for almost all sectors, promoting policies such as the Production Linked Incentives (PLI) scheme, and incentivizing long-term investments under the Make in India program.
> India’s exports have been showing significant upswing. Over the past decade (FY13 to FY23), merchandise exports have increased by more than 50% and services exports by 120%. The highest-ever merchandise export of USD 451.1 billion was achieved in FY23. The non-food credit growth is strong, enabling the Indian economy to grow at a brisk rate.
> Investment incentives and initiatives taken to ease business compliances and remove policy uncertainties have created an ecosystem for start-ups to nurture.
> India is the third largest fintech economy in the world after the US and the UK.

9. Skill Development
> The skilling ecosystem has ramped up with the launch of the Skill India Mission in 2015.
> According to India Skills Report 2023, the employable percentage of final-year and pre-final-year students has increased from 33.9% in 2014 to 51.3% in 2024.
> There’s ample scope to mainstream skilling into the education curriculum and upskill a large size of the existing workforce into future-relevant skills. For instance, according to the PLFS 2022–23 report, 72.6% of workers aged 15–59 years did not receive any formal/informal vocational/technical training.