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Economic Survey 2024: Economy likely to grow at 6.5 to 7 per cent in FY 25

The Economic Survey stated that the Indian economy is on a strong wicket and stable footing, showing resilience in the face of geopolitical challenges.

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Economic Survey 2024: Economy likely to grow at 6.5 to 7 per cent in FY 25

While presenting the Economic Survey 2023-24, Finance Minister Nirmala Sitharaman highlighted that the Indian Economy is on a strong wicket and stable footing. The survey projected a real GDP growth of 6.5 per cent to 7 per cent in FY 25. 

The Economic Survey stated that the Indian economy is on a strong wicket and stable footing, showing resilience in the face of geopolitical challenges. The economy also consolidated post-Covid recovery with policymakers, fiscal and monetary, ascertaining economic and financial stability.

The survey further underlined that for the recovery to be sustained, there has to be heavy lifting on the domestic front because the environment has become extraordinarily difficult to reach agreements on key global issues like trade, investment and climate. 

It mentioned that headline inflation remains largely under control, despite increased rates for some specific food items. Notably, the trade deficit for FY24 was lower compared to FY23, with a current account deficit around 0.7 per cent of GDP and a surplus recorded in the last quarter. The foreign exchange reserves are ample, supporting economic stability. 

In recent years, public investment has driven capital formation and the private sector has begun investing in FY22 after addressing balance sheet issues, and is currently poised to sustain this momentum.

The survey stated that job creation occurs mostly in the private sector. Additionally, many of the factors influencing economic growth, job creation, and productivity are within the purview of state governments. Hence, India needs a tripartite compact, among the central government, state governments, and the private sector, more than ever before to meet the rising aspirations of its citizens and achieve the goal of a developed India by 2047, the survey noted.

The survey also highlighted that the agriculture sector is crucial for India and ripe for a comprehensive pan-India dialogue. It stated that India heavily subsidises water, electricity, and fertilizers for farmers, often providing the former two virtually free.

In addition, farmers’ incomes are untaxed, and the government offers a minimum support price (MSP) for 23 selected commodities, along with monthly cash support through the PM-KISAN scheme. Despite significant spending by national and sub-national governments, a re-orientation of existing and new policies could better serve farmers.

At present, a mix of conflicting policies is harming farmers’ interests, destroying soil fertility, depleting groundwater, polluting rivers, and contributing to environmental issues. These aforesaid policies also undermine public health by promoting diets rich in sugar and carbohydrates instead of fiber and protein. Untangling these policy knots could yield immense benefits, restoring faith in the state’s ability to guide the nation towards a better future and delivering substantial socio-economic advantages.

Another factor where policy intentions have yet to achieve desired outcomes is with respect to small, medium, and large enterprises. Earlier, multiple products were reserved for small-scale industries, but this approach was phased out as it benefitted neither the small industries nor the overall economy. Recent concerted efforts at formalizing these enterprises are making progress, but access to finance remains a significant challenge. 

Notably, buyers and creditors are shedding old mindsets and practices too slowly for these enterprises to feel the impact. Additionally, these businesses need maximum relief from the compliance burdens they face. Existing laws, rules, and regulations stretch their finances, abilities, and bandwidth, potentially robbing them of the will to grow.

Further, the Economic Survey highlighted that the tripartite compact that India needs to become a developed nation amidst emerging unprecedented global challenges involves three key elements namely, governments must trust and let go, the private sector must reciprocate this trust with long-term thinking and fair conduct, and the public must take responsibility for their finances and their physical and mental health.

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Congress seeks 175-200 seats in UP, Samajwadi Party stresses on winnability

Congress has initiated seat-sharing talks with the Samajwadi Party for the 2027 UP Assembly elections, seeking to contest 175–200 seats. The SP has emphasised winnability as the key criterion for allocating constituencies.

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Bypoll update: BJP leads in UP's Milkipur, DMK eyes victory in Erode East

The Congress has formally initiated seat-sharing discussions with the Samajwadi Party (SP) for the 2027 Uttar Pradesh Assembly elections, submitting an initial list of constituencies it wants to contest as part of an alliance.

Congress’ Uttar Pradesh in-charge Rajendra Pal Gautam said the party had shared a list covering between 175 and 200 seats with Samajwadi Party leaders a few days ago. Detailed discussions on the distribution of constituencies are expected to follow.

The Uttar Pradesh Assembly has 403 seats. While the Congress is seeking a substantial share in the proposed alliance, the Samajwadi Party has emphasised that candidates’ electoral winnability should determine seat allocation.

A senior SP leader said the party’s position was guided by the principle that winnability should remain the primary criterion. The leader also cautioned against treating initial demands as a basis for a final agreement.

Why the Congress wants a larger share of seats

The Congress believes its performance in the 2024 Lok Sabha elections has strengthened its position in Uttar Pradesh. The party won six parliamentary seats in the state while its ally, the Samajwadi Party, secured 37. The BJP won 33 seats.

Congress leaders have argued that the results demonstrated the electoral potential of the alliance and the importance of allowing both parties a meaningful role in the upcoming Assembly contest.

However, the party’s recent Assembly election record presents a different picture. The Congress won only two seats in the 2022 Uttar Pradesh Assembly elections, down from seven in 2017, when it contested in alliance with the Samajwadi Party.

The difference between its performance in the parliamentary and Assembly elections is likely to be an important consideration in the seat-sharing negotiations.

Akhilesh Yadav stresses opposition unity

Samajwadi Party chief Akhilesh Yadav has maintained that the Congress, the SP and the INDIA bloc need to work together to defeat the BJP in Uttar Pradesh.

Speaking to reporters in Lucknow on Friday, Yadav said the alliance would move forward effectively towards that objective. His remarks indicated that the two parties remain committed to cooperation even as discussions over the distribution of seats continue.

The challenge for both sides will be to reach an arrangement that accommodates their respective political ambitions while taking the electoral strength of individual candidates and constituencies into account.

Congress leadership changes amid alliance talks

The Congress has also reorganised its Uttar Pradesh leadership ahead of the Assembly elections. Aradhana Misra was appointed as the state unit chief, replacing Ajay Rai.

The leadership change is believed by some Congress leaders to be part of efforts to facilitate a workable arrangement with the Samajwadi Party. Misra is considered to have good relations with the SP leadership.

Congress leaders have expressed hope that negotiations will produce a reasonable seat-sharing agreement and confirmed that the two parties intend to contest the 2027 Uttar Pradesh elections together.

The final seat allocation, however, remains undecided. Both parties will need to reconcile the Congress’ demand for a larger share with the SP’s emphasis on winnability before the alliance can settle on a constituency-wise arrangement.

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Thousands bang utensils, beat drums in Manipur protest over continued killings

Thousands of people staged a sound protest across Manipur’s five valley districts on Friday, October 23, banging utensils, beating drums and honking vehicle horns to protest continued killings and the prolonged ethnic conflict.

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Thousands of people across Manipur’s five valley districts took to the streets on Friday evening, October 23, to stage a sound protest against continued killings, the prolonged ethnic conflict and the government’s failure to restore normalcy.

Residents in several localities of Imphal banged utensils, beat drums, struck electric poles with hammers and honked vehicle horns between 7:30 pm and 8 pm. The demonstration was intended to draw the authorities’ attention to public grievances and demands amid continuing unrest.

The protest reflected growing frustration among residents over the unresolved conflict and the lack of progress towards restoring peace in the state.

Protesters march towards Kangla

During the demonstration, protesters marched towards Kangla, the historic political and cultural centre of the erstwhile Manipur kingdom. The site is located close to Lok Bhavan and the chief minister’s secretariat in Imphal.

Security forces stopped several groups at Palace Compound, Moirangkhom and Keisampat junctions. Hundreds of other protesters reached the entrance to Kangla but were prevented from entering the fort premises.

Police later fired tear gas shells to disperse demonstrators gathered near Lok Bhavan. Barricades were also erected in the area after 8 pm.

Federation of Haomee called for the protest

The demonstration was organised in response to a call by the Federation of Haomee, a civil society organisation that urged residents to make noise between 7:30 pm and 8 pm.

The organisation’s call came amid anger over the continuing ethnic conflict and demands for effective action to restore peace in Manipur.

A protester said the demonstration was intended to make leaders hear the public’s suffering, adding that repeated appeals and demands had not received adequate attention.

Fresh killings add to tensions in Manipur

The protest took place amid renewed tensions following recent killings in the state. On October 18, three Meitei civilians who had reportedly gone to collect firewood near the Khongbal Tangkhul foothills in Imphal East district were killed in an attack, triggering protests and demands for stronger security measures.

The killings were followed by a 48-hour statewide shutdown and demonstrations in which grieving villagers brought the bodies of two victims to the chief minister’s residence.

The latest sound protest adds to the public demonstrations over the continuing violence and the demand for a return to normalcy in Manipur.

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MEA responds after ITBP chief flags ongoing face-offs with China in Arunachal

India said deviations by Chinese forces from established patrolling patterns periodically disturb the situation along the Line of Actual Control, as the government addressed remarks by the ITBP chief about ongoing face-offs in Arunachal Pradesh.

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MEA

India on Friday said that deviations by Chinese forces from established patrolling patterns periodically disturb the situation along the Line of Actual Control (LAC). The Ministry of External Affairs (MEA) made the remarks amid reports of continuing face-offs between Indian and Chinese forces at multiple locations in Arunachal Pradesh.

MEA spokesperson Randhir Jaiswal addressed the issue during a regular media briefing on October 23, following remarks by Indo-Tibetan Border Police (ITBP) Director General Shatrujeet Kapur about the ongoing confrontations along the border.

“As we have noted in the past, the situation in the India-China border areas gets disturbed from time to time when Chinese forces diverge from established patrolling patterns,” Jaiswal said.

He also reiterated that maintaining peace and tranquillity in the border areas was essential for the overall development of bilateral relations between India and China.

MEA stresses diplomatic and military engagement

Jaiswal said India and China continued to use existing diplomatic and military mechanisms to resolve outstanding issues and prevent misunderstandings and miscalculations along the LAC.

He added that both countries had agreed to discuss ways to improve their understanding of the LAC in appropriate areas to strengthen border management.

The spokesperson did not elaborate on the specific confrontations mentioned by the ITBP chief, with further questions on the details referred to the Ministry of Defence, according to reporting on the briefing.

ITBP chief confirms ongoing face-offs in Arunachal Pradesh

A day before the MEA briefing, Kapur said face-offs between Indian and Chinese forces had occurred at several locations in Arunachal Pradesh in recent days and that the situation was continuing.

Speaking to ITBP personnel at a base in Alwar, Rajasthan, on Thursday, Kapur also discussed the force’s efforts to strengthen its operational capabilities along the border.

He said the ITBP had mobilised its newly raised Shaurya commando unit during the ongoing face-offs. He also highlighted the creation of drone platoons for border units and the development of a new training course to prepare personnel for battles similar to the 2020 Galwan Valley clash.

The remarks came as the ITBP continued its modernisation efforts, including a greater focus on specialised training and emerging warfare technologies.

Border management remains central to India-China ties

The latest statements underline the importance India places on maintaining peace along the disputed boundary while addressing unresolved issues through diplomatic and military channels.

India and China have continued engagements aimed at managing tensions along the LAC. However, reported confrontations at multiple locations in Arunachal Pradesh have brought the border situation back into focus.

The MEA reiterated that peace and tranquillity along the border remained essential for the broader development of bilateral relations, while emphasising continued engagement to improve border management.

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