Finance Ministry says economy likely to grow closer to 7% in 2024-25.

Syllabus:GS-III

Subject:Economy

Topic:Growth and Development, Inclusion

Issue: Economic growth report

Context: The Ministry of Finance released a report titled ‘The Indian economy — A review’ ahead of the Interim Union Budget.

Synopsis:

  • The report pegged India’s real GDP growth at closer to 7% in 2024-25.
  • The Indian economy will hit $5 trillion in the next three years, making it the third largest in the world.
  • Structural reforms post 2014
    • Goods and Services Tax
    • The Insolvency and Bankruptcy Code,
    • Push for infrastructure building
    • Demonetisation(led to a surge in the use of non-cash forms of payment)

Mains specific Statements/data

  • Finance Ministry warned that “exporting one’s way to growth (China model) is no longer easy amid
    • onshoring and friend-shoring of production
    • increasing vulnerabilities of global supply chains due to events like pandemic and geopolitical tensions.
  • The report listed three trends for the coming years —
    • The end of the era of hyper-globalisation in global manufacturing
    • The advent of Artificial Intelligence and
    • The energy transition challenge.
  • 51 crore bank accounts under Jan Dhan Yojana opened of which 55 percent are women.

 

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