Economic Survey 2023 Updates: The GDP growth for India’s FY24 is predicted to be 6.8%, the lowest in the past three years

Just one day before she delivers the Union Budget for 2023–24, Nirmala Sitharaman the Finance Minister today introduced the Economic Survey 2023 in Parliament. The government’s premier report, the Economic Survey, predicted 6–6.8% economic growth for FY24. V Anantha Nageswaran Chief Economic Adviser stated during a press conference that the Modi administration’s reforms over the previous eight years have set India up for success in this decade.

Despite difficulties, the Economic Survey 2023 reveals that the government is on course to meet its fiscal deficit target.

Sanjiv Bajaj, President, CII, responded to the Economic Report 2022–23 that was presented to Parliament today by saying that it demonstrated that, despite financial challenges, the government is on pace to meet its budget deficit objective for the year. This would not only contribute to maintaining credibility and macroeconomic stability, but it would also free up funds to dramatically increase capital expenditures, particularly in the sector of Infrastructure, which would fuel the economy’s growth engine this year and move beyond.

2023 Economic Report: CBDC will promote digital financial services 

According to the Economic Survey 2023, the (CBDC) Central Bank Digital Currency will increase the demand for financial services, facilitate financial inclusion, lower the cost of maintaining cash, and foster innovation in the cross-border payments market.

Three weeks after the Governor of the Reserve Bank of India (RBI), Shaktikanta Das stated that CBDC and cross-border trade settlement in the rupee had enormous potential, the endorsement has been given.

The survey found that, in July 2022, 105 nations were investigating CBDC. Global GDP of 95 percent is produced by these nations. Most of these nations have already started or are currently piloting CBDC.

India started testing the Digitalize Rupee in the wholesale need on November 1 and the retail market on December 1. While the retail segment testing is being done with a closed user group of clients and merchants, the wholesale segment pilot was launched with the use imprisoned to the concession of secondary market trades in government securities.

2023 Economic Survey: According to CEA, we don’t forecast the value of the rupee.

“We don’t make prophecies about the currency,” CEAA Anantha Nageswaran said regarding the rupee’s fall in response to global influences.

In the meantime, the rupee lost 52 paise to 82.04 against the US dollar in intraday trade on January 31 after the Economic Survey 2022-23 warned that the domestic currency may continue to face pressure due to a plateauing in exports and the ensuing widening of the current report depletion.

Forex traders claimed that substantial withdrawals of foreign funds and a flat domestic equity market trend also hurt investor mood.

2023 Economic Survey: A disappointing year for main markets, but positive SME IPO 

The Economic Survey 2023 states that while fundraising through people offerings (IPO) has been disappointing for FY23 thus far, the number of small and medium companies (SME) swarming to D-Street has been encouraging. The public issues of roughly 85 SMEs were released between April to December 2022. The IPO SME BSE index increased by roughly 73 percent throughout the same time frame. The Economic Survey, which was presented to Parliament on January 31, stated that when compared to FY22 (until November 2021), this year, “not only did the numeral of SMEs reaching with IPOs nearly double, but the whole funds raised by them were almost three times the funds brought up by them in the same duration last year.”

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2023 Economic survey: The Indian stock market is more expensive than its counterparts elsewhere.

The Economic Survey 2022–23, which was presented to Parliament on January 31st, claimed that Indian markets are pricey when compared to those of their competitors worldwide.

The yearly publication stated, “Nifty 50 is costly relative to global markets, with its valuation at 21.8 duration the income of the member stocks (P/E ratio on trailing basis at the end of December 2022).”

In the survey, the valuation of the Nifty was compared to those of other MSCI indices, such as the MSCI World Index (17.1 times PE), MSCI Emerging Markets Index (12.2 times PE), and BIC Index (PE: 13.9 times).

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