Building on economic gains key to future resilience
growth imperatives. Geopolitical conflict has frequently disrupted trade, and geo-economic fragmentation has added to the uncertainty. The April 2024 edition of the IMF Fiscal Monitor noted that governments worldwide were grappling with high debt and deficits. In this context, the Indian economy's average growth rate of around 8% in the last three fiscal years is a creditable achievement. The economy has firmly put behind the scars of the pandemic. India is one of the only two major economies whose GDP at constant (2011-12) prices is 20% above the pre-pandemic level. While this is truly creditworthy, now is the time to consolidate and further build on the gains achieved while implementing policies safeguarding the growth process. This is the overarching message of Chapter 1 of the Economic Survey 2023-24.
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The pandemic-induced contraction necessitated a strong response to put the economy back on track. It presented an opportunity to deploy a counter-cyclical fiscal policy focused on capital expenditure in the form of the ongoing infrastructure buildout, thus positioning public sector-led capital formation as a growth catalyst. The private corporate sector, which reduced its debt burden over the last decade, also contributed by stepping up investment, aided by a healthy banking and financial system and supportive policy framework.
The pandemic also accelerated the digitalisation of service delivery across the economy. The public policy emphasis on fostering digital technology processes and frameworks significantly facilitated this profound transformation.
