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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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Yogi Adityanath transfers over Rs. 148 crore to 4.60 lakh students

Uttar Pradesh Chief Minister Yogi Adityanath transferred over Rs. 148 crore to the bank accounts of more than 4.60 lakh students under the state’s scholarship and fee reimbursement programme.

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Yogi Adityanath

Uttar Pradesh Chief Minister Yogi Adityanath transferred more than Rs. 148 crore in scholarship and fee reimbursement funds to over 4.60 lakh students on Saturday, according to the report.

The funds were transferred to students through their bank accounts as part of the state’s scholarship and fee reimbursement programme.

The initiative covers students from different social and economic categories and is aimed at ensuring that financial difficulties do not prevent them from continuing their education.

Yogi Adityanath’s message to students

During the programme, the Uttar Pradesh Chief Minister said that no student should have to discontinue education because of a lack of funds.

He stressed the government’s commitment to providing students with equal opportunities to pursue their education and move forward in life.

The scholarship and fee reimbursement support is intended to provide financial assistance to eligible students while helping them continue their studies.

Scholarship support for UP students

The latest transfer covers more than 4.60 lakh students and involves over Rs. 148 crore in financial assistance. The programme includes scholarship and fee reimbursement support for eligible students.

Other reports on the October 3 distribution said the amount covered students belonging to the Other Backward Classes, Scheduled Castes, general category and minority communities.

The Uttar Pradesh government has also highlighted the use of automation in the scholarship distribution process, saying it has improved transparency and helped ensure timely payments to students.

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Tariffs, export controls increasingly used for strategic purposes, says PM’s Principal Secretary

PM’s Principal Secretary P K Mishra said tariffs, export controls and other restrictions are increasingly being used for strategic purposes amid growing global economic uncertainty.

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PM’s Principal Secretary P K Mishra has said tariffs, export controls and other restrictions are increasingly being deployed for strategic purposes as countries deal with greater economic uncertainty and disruptions to global supply chains.

Speaking at the Kautilya Economic Conclave in New Delhi on Saturday, Mr Mishra highlighted the changing nature of economic risks and the need for countries to build resilience without withdrawing from the global economy.

He said the distinction between conventional risks and uncertainty has become increasingly important for economic decision-making. While risks can generally be assessed in terms of probability, uncertainty makes it more difficult to determine the likelihood of different outcomes.

Tariffs and restrictions becoming strategic tools

Mr Mishra said economic disruptions are no longer limited to traditional market risks. Wars, interruptions to shipping routes and geographical choke points can affect food, energy and supply chains across countries.

Referring to such developments, he said tariffs can sometimes become instruments of weaponisation, while other restrictions are increasingly being used for strategic purposes.

He also said export restrictions, sanctions and tariffs can serve purposes beyond conventional commercial objectives, bringing geopolitical considerations more prominently into economic policymaking.

The comments came against the backdrop of discussions on economic resilience at the fifth Kautilya Economic Conclave, whose theme focuses on dealing with global shocks while preserving growth and openness.

India focuses on economic resilience

Mr Mishra said India’s economic strength is supported by its macroeconomic fundamentals and that the country has maintained a high level of growth despite global uncertainty.

He argued that resilience does not require choosing between complete self-sufficiency and globalisation. Instead, countries need to build domestic capabilities in strategically vulnerable areas, diversify sources of supply where concentration creates risks and remain open where global integration supports productivity and competitiveness.

India’s electronics sector, along with pharmaceuticals and semiconductors, provides examples of areas where domestic capabilities can help reduce vulnerability while remaining connected to global markets, he said.

Geography becomes an economic factor

Mr Mishra also pointed to the impact of disruptions around major shipping routes. He said geographical choke points can become sources of vulnerability, particularly for a country such as India that is a major energy importer.

He said India’s response has included maintaining stocks, increasing domestic production where possible and diversifying procurement and supply routes.

The broader issue, according to Mr Mishra, is how economies can preserve the gains of globalisation while becoming less vulnerable to shocks and excessive concentration in particular suppliers or geographical regions.

He said building resilience carries an economic cost, meaning governments need to assess where investment in resilience is justified by the potential economic and social impact of a disruption.

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New UP Congress chief Aradhana Mishra backs stronger alliance with SP 

Newly appointed UP Congress chief Aradhana Mishra said the party would strengthen its alliance with the Samajwadi Party ahead of the 2027 Assembly election.

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Newly appointed Uttar Pradesh Congress president Aradhana Mishra, also known as Mona, has said the party will take its alliance with the Samajwadi Party forward with full strength ahead of the 2027 Uttar Pradesh Assembly election.

Mishra, the daughter of Congress MP Pramod Tiwari, has been given the responsibility of leading the party’s state unit as Congress prepares for the assembly polls due in around six months, according to the report.

Speaking about Samajwadi Party chief Akhilesh Yadav, Mishra described the SP as a strong partner of the Congress in the INDIA bloc.

“The Samajwadi Party is a partner of ours in the INDIA bloc, and a strong one at that,” she said, while praising the way Akhilesh Yadav has strengthened his party.

Aradhana Mishra backs Congress-SP alliance

Mishra referred to the performance of the INDIA bloc in the 2024 Lok Sabha election in Uttar Pradesh while discussing the alliance’s prospects for the next assembly election.

The INDIA bloc won 43 of Uttar Pradesh’s 80 Lok Sabha seats in the 2024 election, according to the report.

Mishra said the alliance had stopped the BJP’s advance in Uttar Pradesh in the 2024 Lok Sabha election and expressed confidence that the partnership would produce results in the 2027 Assembly election.

“We will take this alliance forward with full strength,” she said.

The new state Congress chief will also have to advance seat-sharing discussions with the Samajwadi Party. The report said Congress wants a larger share of seats, while the SP has not indicated a willingness to give ground, arguing that it is in a stronger position in the state.

Congress announces new UP team

The leadership change is part of a wider organisational reshuffle by the Congress in Uttar Pradesh.

Along with appointing Mishra as state Congress president, the party named Rajya Sabha MP Imran Masood as working president. Chaudhary Virendra Singh was appointed Leader of the Congress Legislature Party.

Devinder Nishad and Alok Prasad were also appointed senior vice presidents of the Uttar Pradesh Congress Committee.

The new appointments bring different social groups into prominent positions in the state organisation. Mishra is a Brahmin, Masood is a Muslim and Rajendra Pal Gautam, the Congress’ AICC in-charge of Uttar Pradesh, is a Dalit, the report said.

Mishra, however, said the Congress does not practise caste or religion-based politics.

She said the party wanted to strengthen the country, protect the Constitution and build a strong alternative ahead of the 2027 election.

Mishra’s challenge ahead of 2027 polls

As the new Uttar Pradesh Congress chief, Mishra will be responsible for strengthening the party’s organisation in the state while also taking forward its alliance with the Samajwadi Party.

The Congress and SP are part of the INDIA bloc in Uttar Pradesh. With seat-sharing discussions ahead of the 2027 Assembly election, Mishra’s comments indicate that the Congress intends to continue working with the Samajwadi Party.

The appointment of Mishra comes alongside other organisational changes aimed at preparing the party for the upcoming assembly election.

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