Modi 3.0 Budget 2024: Key Highlights From Economic Survey 2023-24 On Remittances Growth, FDI Prospects, And AI’s Job Impact

As the countdown for the Union Budget 2024 presentation began, the Union Finance Minister, Nirmala Sitharaman, today (July 22) tabled the Economic Survey 2023-24 in the Parliament. The annual document provides an overview of the various sectors, technological impacts and future prospects.

Here is the breakdown of the key highlights of the report:

1. Remittances and Economic Health

According to the economic survey report, the remittances to India are expected to grow by 3.7 per cent to USD 124 billion in 2024 and by 4 per cent to USD 129 billion in 2025.

2. The Role of Foreign Direct Investment (FDI) from China

The survey discusses India’s options under the 'China plus one' strategy -integrating into China’s supply chain or promoting FDI from China.

Currently, the Chinese FDI in India is relatively low, but increasing such investments could enhance India’s global supply chain participation.

3. Impact of Artificial Intelligence on Employment

According to the report, the AI's rapid advancement has enhanced productivity. It also added that the uncertainty surrounding its impact on employment across different skill level.

The survey added that although AI promises a significant productivity boost but at the same time also poses a risk of job displacement in certain sectors.

4. Resilience of Indian Capital Markets

Despite global economic uncertainties, the Indian capital markets reported a strong performance. The headline indices, BSE Sensex surged around 25 per cent in FY24 and reached 80,000 points in July 2024.

The report highlights this success to India’s resilience against geopolitical shocks, a strong domestic investor base and a strong domestic macroeconomic outlook.

5. Infrastructure Development and Private Sector Financing

The Production Linked Incentive (PLI) scheme for automobiles has attracted significant investment, generating jobs and contributing to the sector’s growth.

As per the survey report, the private sector financing played a crucial role in building quality infrastructure.