Economic Survey: The government’s recipe for growth, in 12 charts

livemint.com:

₹5 crore “with a guaranteed coverage of up to 85%" (Charts 3a, 3b). However, major shocks over the last decade such as the transition to the goods and services tax (GST), demonetisation and covid have seriously affected the sector. The survey calls for ensuring MSMEs are bankable, a focus on employment-intensive MSME sectors, a collaboration between government, industry and academia to increase skills in the labour force, and providing faster clearances to MSME.

When the Indian economy was growing in excess of 8% between 2003 and 2012, private investment—setting up of new capacity by Indian companies—was one of the driving forces. It, however, declined from 27% of GDP in 2011-12 to 20.7% in 2020-21. Private corporate investments remain critical for India’s growth story, and it has shown signs of revival in the last two years (Chart 4a and 4b).

However, household savings—which provide funds for private investments to take place—shrunk from 23.6% of GDP in 2011-12 to 18.4% of GDP in 2022-23. Even lately, as private investment has recovered, household savings continues to decline. The question now is will there be enough savings to fuel growth through private investment? Foreign trade will be an important pillar of India’s growth story.

In China’s high-octane growth earlier this century, exports were a critical piece to make it a factory to the world. The world was a much open place for trade then. As India tries to create its own growth streak, the world is turning relatively insular, the Survey points out.