Navigating Key Economic Challenges for Sustainable Growth and Long-term Prosperity
1 min read • Updated: January 31, 2024, 2:34 PM
Ahead of the Interim Budget 2024, India faces key challenges, including managing inflation within the target range, navigating the global economic slowdown, maintaining robust GDP growth, and addressing declining exports and fiscal deficits. These concerns are critical for sustaining India's economic growth and achieving its long-term goal of becoming a $30 trillion economy by 2047.
💡Inflation - A Common Foe
Inflation isn't just a concern for individuals; it's a challenge for the government, especially during elections. With RBI projecting a 5.4% inflation rate for FY24, keeping it within the comfort zone of 4% is crucial. Tax revisions, duties, and subsidies in the interim budget may play a role.
🌍Global Economic Slowdown - A Global Hitch
The global economy has been sluggish for the past three years. Factors like geopolitical conflicts and inflation have contributed. Although India has largely escaped the worst, vigilance is necessary to sustain growth.
📈India's Economic Growth - Balancing Act
With the first advance estimates projecting a 7.3% GDP growth for FY24, the Finance Minister must ensure India stays on the growth track. The goal is to make India a $30 trillion economy by 2047, a commitment stated by the government.
📉 Declining Exports and Fiscal Deficit - A Dual Challenge
India's goods exports have seen a YoY decline of 2.3%, raising concerns about the overall export growth decline from 2014 to 2023. Additionally, managing the fiscal deficit, targeted at 5.9% of GDP for 2023-24, will be vital for sustaining economic growth.