Bikky Khosla | 30 Jan, 2024
review of the Indian economy by the Finance Ministry has estimated India’s
growth at 7 percent or above for FY24. Growing at this rate while
the world economy is struggling to grow at around 2 percent will be impressive,
it adds. There is little doubt that our economy has for quite some time now been
performing well, but if the global economic challenges, particularly geopolitical
conflicts continue in 2024, new challenges will arise for India as well.
The report presents some interesting facts about
India’s social transformation, adding that with Central government's
expenditure on social services increasing at a Compound Annual Growth Rate
(CAGR) of 5.9 percent between FY 2014 and 2023, the lives of the common person now
look remarkably better. Several key improvements have been recorded in areas
like poverty reduction, primary
healthcare, education, financial security, skill development, etc.
The report, while pointing out some priority areas for
future reforms, states about reduction in compliance burden for MSMEs. Ahead of
the Budget, experts also anticipate a lot of such measures, including simplified
regulatory procedures, but there should also be some urgent steps to address
the lingering problem of lack of credit availability and higher interest rates.
This sector, with its immense employment generation and social transformation prowess,
must be a priority.
Meanwhile, according to a latest survey, business
activity in India surged a four-month high in January. HSBC's flash India
Composite PMI found both manufacturing and services registering robust growth
in the month. The survey participants stated about higher sales and faster rate
of expansion in new orders due to favourable economic conditions and demand
invite your opinions.