Economic Survey calls for tripartite agreement to make India developed by 2047

The government presented the Economic Survey for 2023-24 in the parliament today, estimating that India’s real GDP could grow between 6.5% and 7% in 2024-25. {{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}} Redefining the responsibilities of the government, capital and citizens… {{^usCountry}} {{/usCountry}} “The tripartite compact that this country needs to become a developed nation amidst emerging unprecedented global challenges is for governments to trust and let go, for the private sector to reciprocate the trust with long-term thinking and fair conduct and for the public to take responsibility for their finances and their physical and mental health”, the Survey says, hinting that India’s economic rejuvenation is not something which can be achieved by a kneejerk shift towards complete or no regulation or markets. “…notwithstanding the impressive strides made in the last decade, uncertainties and interpretations related to transfer pricing, taxes, import duties and non-tax policies remain to be addressed”, the Survey says while underlining the already difficult problem of attracting FDI on account of higher interest rates in advanced economies and growing geopolitical tensions. The Survey does make a criticism of the private sector as well, for not responding on intended lines to the government’s decision to reduce corporation tax rates to facilitate capital formation in the Indian economy. The Indian economy has consolidated its post-Covid recovery with policymakers – fiscal and monetary – ensuring economic and financial stability”, the Survey notes while underlining the importance of factors such as “possibility of overconfidence leading to speculation and the expectation of even greater returns, which might not align with the real market conditions” along with usual emphasis on fiscal and monetary stability.