Economic Survey 2024: Prime Minister Narendra Modi mentioned on Monday, July 22, that the Budget for 2024-25 is a significant part of the ‘Amrit Kaal,’ intended to create a strong base for achieving the vision of a developed India by 2047. He encouraged political parties to move beyond party politics for the next four and a half years.
PM Modi expressed pride that, for the first time in 60 years, a government has come to power for the third time and is set to present its third consecutive budget. He reiterated his commitment to the people of India, assuring them that the government is dedicated to fulfilling its promises.
He emphasized that this budget is critical for the ‘Amrit Kaal,’ and will determine the direction of their term for the next five years. Additionally, he highlighted that this budget would serve as a strong foundation for realizing the dream of a ‘Viksit Bharat’ (developed India).
Economic Survey 2024
India must recognize and address the challenges of relying on China for critical minerals. The government’s Economic Survey 2024, presented in Parliament on Monday, highlighted this issue and also examined how reducing coal usage impacts bank balance sheets as India speeds up its green transition.
To help meet the global target of limiting temperature rise to 1.5 degrees Celsius, India has pledged to cut emissions by 45% from 2005 levels by 2030. The country aims to have 50% of its electric capacity from non-fossil fuel sources and create a carbon sink of 2.5 to 3 gigatons of CO2 equivalent by increasing forest and tree cover.
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Key Areas for Economic Growth
The Economic Survey has identified six key areas that need attention to drive economic growth. These areas are essential for shaping a prosperous and sustainable future for India:
Boost in Private Investments:
The survey emphasizes the need to enhance private sector investment. Private investments are a significant driver of economic growth as they lead to job creation, innovation, and increased productivity. Encouraging more investments from private entities can stimulate economic activity and contribute to the overall development of the country.
Focus on MSMEs:
Micro, Small, and Medium Enterprises (MSMEs) are crucial for economic expansion. The Economic Survey highlights the strategic importance of prioritizing the growth and expansion of MSMEs. These enterprises play a vital role in employment generation, income distribution, and regional development.
Supporting MSMEs through favorable policies, easier access to finance, and reducing bureaucratic hurdles can boost their contribution to the economy.
Agriculture Sector:
The government aims to prioritize agriculture as a key driver of growth by addressing and removing current policy obstacles. Agriculture is a significant part of the Indian economy, providing livelihood to a large portion of the population.
Improving agricultural productivity, ensuring better market access, and implementing sustainable farming practices can lead to a more robust agricultural sector and contribute to overall economic growth.
Financing of Green Transition:
Securing financing for India’s green transition is crucial for sustainable development and environmental protection.
The Economic Survey highlights the importance of mobilizing funds to support initiatives aimed at reducing carbon emissions, promoting renewable energy, and adopting environmentally friendly practices. Financing the green transition can help India achieve its climate goals and ensure long-term environmental sustainability.
Addressing Education-Employment Gap:
Closing the gap between education and employment is essential for economic growth. The survey underscores the need to align educational outcomes with industry requirements.
Improving the quality of education, enhancing vocational training, and fostering industry-academia collaboration can help produce a workforce that meets the demands of the job market, thereby reducing unemployment and underemployment.
State Capacity and Capability:
Enhancing the capacity and capability of state institutions to effectively implement policies and drive growth is crucial. The Economic Survey points out that strengthening state institutions can lead to better governance, efficient service delivery, and more effective policy implementation. Building robust state capacity can facilitate the achievement of development goals and ensure sustained economic progress.
The Economic Survey particularly emphasizes the importance of the agriculture sector and the education-employment link as critical areas for growth during Amrit Kaal. By addressing these six key areas, India can pave the way for a more prosperous, sustainable, and inclusive future.
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Economic Survey 2024 FAQs
Q.1. What did Prime Minister Modi say about the 2024-25 Budget?
Ans. PM Modi described the 2024-25 Budget as crucial for the ‘Amrit Kaal’ and essential for building a strong foundation toward India’s development goals for 2047.
Q.2. Why is the Economic Survey 2024 significant?
Ans. The Economic Survey 2024 highlights key challenges and strategies for India’s growth, including reducing reliance on China for minerals, advancing green transition, and addressing the education-employment gap.
Q.3. What are the key areas identified for economic growth?
Ans. The Economic Survey identifies boosting private investments, focusing on MSMEs, enhancing agriculture, financing green transition, addressing the education-employment gap, and improving state capacity as critical for economic growth.
Q.4. How does the Economic Survey suggest improving agriculture?
Ans. The survey recommends addressing policy obstacles, increasing agricultural productivity, improving market access, and adopting sustainable farming practices to strengthen the agriculture sector.
Q.5. What goals has India set for its green transition?
Ans. India aims to cut emissions by 45% from 2005 levels by 2030, achieve 50% non-fossil fuel electric capacity, and create a carbon sink of 2.5 to 3 gigatons of CO2 equivalent.
