• UGI USER
  • Jul 23, 2024
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ECONOMIC SURVEY HIGHLIGHTS KEY CHALLENGES AND SOLUTIONS

Why in the news?

Economic Survey 2023-24 reveals India’s growth challenges, including global headwinds, dependence on China, and data deficiencies.

source:economictimes

Key points from the Economic Survey:

Challenges Identified:

  • Global Headwinds: High interest rates and geopolitical uncertainties affect foreign direct investment (FDI) and increase competition from developed countries with substantial subsidies.
  • China Dependency: India’s reliance on China for imports, especially in renewable energy, and China’s retention of low-skill manufacturing.
  • AI Threat: Advances in AI may impact India’s booming telecommunications and BPO sectors.
  • Tepid Private Investment: Despite tax cuts, private sector investment remains low; profits have risen without corresponding job growth.
  • Employment Needs: India requires nearly 7.85 lakh new jobs annually in the non-farm sector to match workforce growth.
  • Data Deficiency: Lack of timely, accurate data on job creation hinders effective labour market analysis.
  • Lifestyle Issues: Sedentary habits, unhealthy diets, and excessive screen time undermine public health and economic potential.
What is the Economic Survey?     

  • Purpose: Annual report presented before the Union Budget.
  • Content: Reviews past year’s economic development, program performance, and policy initiatives.
  • Importance: Essential for understanding India’s economic landscape.
  • Focus: Examines agriculture, industry, services, infrastructure, and policy impacts.