Comment on Economic Survey 2023-24

By Dr. Vijay Kalantri, President – All India Association of Industries (AIAI) and Chairman, MVIRDC WTC Mumbai

Survey shows balanced and commendable growth
Deregulation of MSME sector can provide fresh fillip to this growth

The Economic Survey 2023-24 paints an optimistic picture of the Indian economy by forecasting GDP growth of 6.5-7.0% for this year. We expect the growth to exceed 7% for the fourth consecutive year if exports revive remarkably in the coming months and if private investments picks up.

The Survey has rightly focused on six sectors for renewed policy push in the Amrit Kaal to promote economic growth. These six sectors are agriculture, MSMEs, private investment, green transition financing, addressing education-employment gap and building state capacity for effective implementation of government policies.

The Survey is optimistic about buoyancy in foreign direct investment and domestic private sector investment in the coming years.

It is heartening to note that the Survey expects India to be the financial services hub of the world.

The Survey has rightly identified MSMEs as the backbone of the economy and it has emphasised on deregulation and digitization of the MSME sector.

MSMEs contribute 45% to manufacturing, 30% to GDP and provide 11 crore jobs. As the Survey points out, the MSME sector faces “extensive regulation and compliance requirements”. The Survey calls for simplification of Licensing, Inspection and Compliance for MSME sector at the state level to help the sector grow and create more jobs.

We need continuous dialogue between state governments and the MSME sector for deregulation, training, capacity building, and technology adoption.

Deregulation of the MSME sector is already paying dividend and further de-regulation may promote fresh fillip to economic growth and job creation.

The Survey calls for generating 78 lakh jobs annually outside agriculture to address youth unemployment. MSMEs can play an important role in creating these jobs.