The recently released Economic Survey 2024 has garnered diverse reactions from industry experts, highlighting various strategic insights and economic projections.
Ranen Banerjee, Partner and Leader Economic Advisory at PwC India, emphasised the Chief Economic Advisor's cautious growth projection of 6.5-7.0 per cent for FY25 amid global uncertainties and domestic challenges. "The Economic Survey proposes a compact between central and state governments, the corporate sector, and academia to navigate the unprecedented economic scenario," he noted. Banerjee pointed out the call for governments to reduce regulations, encouraging the private sector to invest in intellectual property, machinery, and equipment, and nudging academia to provide necessary skills and knowledge for IP creation. He also mentioned the challenges in exports, manufacturing, and SMEs, and the potential shift towards the agricultural sector for job generation.
Prashant Sharma, President of NAREDCO Maharashtra, commended the Economic Survey for its focus on infrastructure development, especially in Tier II and Tier III cities. "The survey aligns perfectly with the real estate sector's goals of promoting balanced regional development and addressing urban migration challenges," Sharma said. He also highlighted the survey's emphasis on sustainable and green construction practices and its positive outlook on the residential real estate market, driven by projected economic growth and improved consumer confidence.
Aditi Nayar, Chief Economist and Head of Research & Outreach at ICRA Ltd, stressed the need for the private corporate sector and state governments to support medium-term growth. "Managing inflation requires active intervention by the Centre, especially in food price management," Nayar added, highlighting the importance of achieving an optimal growth-inflation mix.
Lokesh Shah, Partner at INDUSLAW, noted the survey's recognition of GIFT IFSC's strides in becoming a leading global financial centre. "Startups previously relocating overseas are closely monitoring potential tax incentives to encourage their return to India within GIFT IFSC," Shah remarked.
Suman Banerjee, CIO at Hedonova, praised the Economic Survey for addressing fiscal deficits and global economic uncertainties while emphasising infrastructure, agriculture, and social sectors. "The survey's forecasts underscore the need for targeted funding and strategic reforms to ensure long-term development and resilience," Banerjee said, expecting the survey to significantly influence policy decisions.
Sarbvir Singh, Joint Group CEO at PB Fintech, highlighted the survey's projection of robust growth driven by strong consumer demand and industrial expansion. Singh emphasised the need for deeper insurance inclusion to protect the financial well-being of the population and address gaps in health insurance coverage. "The survey also raised the issue of product mis-selling in the insurance industry, stressing the need for prompt and fair claim settlements," Singh added. He noted the potential for India to become one of the fastest-growing insurance markets globally, driven by an expanding middle class, increasing digital access, and progressive regulatory reforms.
Singh also pointed out the survey's acknowledgment of India's significant position in the fintech market, advocating for targeted policies to increase insurance penetration, especially in underserved rural areas.
The Economic Survey 2024 sets the stage for the upcoming Union Budget, with experts eagerly awaiting how the highlighted challenges and opportunities will be addressed through fiscal policies and initiatives.
