INDIAN ECONOMY
To be more specific, India's GDP grew by 8.2 percent, and according to the 2023-24 Economic Survey, it is expected to grow between 6.5 and 7 percent in 2024-25. However, this growth will be influenced by various risk factors, including unpredictable weather, financial market volatility in developed nations, and geopolitical challenges.
Retail inflation decreased from 6.7 percent in FY 2022-23 to 5.4 percent in FY 2023-24. Core inflation for goods and services hit its lowest levels in several years, with India outperforming many developed and emerging economies in meeting its inflation targets. In 2023, India's inflation rate remained within the target range of 2 to 6 percent. However, food inflation increased from 6.6 percent in FY23 to 7.5 percent in FY24.
India's fiscal deficit was reduced from 6.4 percent in FY23 to 5.6 percent in FY24, largely due to strong growth in direct and indirect tax revenues, driven by robust economic activity and improved tax compliance. Additionally, higher-than-expected non-tax revenue from RBI dividends boosted revenue receipts. The current account deficit also decreased from 2 percent in FY 2022-23 to 0.7 percent of GDP in FY 2023-24.
Industrial R&D advanced during the year, as evidenced by India's improved ranking on the Global Innovation Index (GII) to 40th position in 2023-24. Notably, the number of patents granted increased to 103,057 in 2023-24, up from 5,978 in 2014-15. Similarly, registered designs rose to 30,672 from 7,147 during the same period.
India's start-up ecosystem is thriving, with over 45 percent originating from Tier 2 and 3 cities. The number of officially recognized start-ups (registered with the Department for Promotion of Industry and Internal Trade) grew from 300 in 2016 to more than 125,000 by March 2024. Over 13,000 of these start-ups operate in fields such as AI, IoT, robotics, and nanotechnology. Between 2016 and March 2024, start-ups filed over 12,000 patent applications. Additionally, 135 Alternative Investment Funds (AIFs) have invested INR 180 billion (US$2.1 billion) in start-ups as of FY24. The Bharat Startup Knowledge Access Registry promotes collaboration within the ecosystem.
While the compliance burden on businesses has eased compared to previous years, it remains heavy, particularly for small and medium enterprises.
Source:
https://www.india-briefing.com/news/economic-survey-of-india-2023-24-report-highlights-33716.html/#:~:text=Inflation%20trends,has%20reached%20multi%2Dyear%20lows