Economic Survey Complete PDF.pdf

Government of India Government of India 2023-24 ECONOMIC SURVEY...

Government of India Government of India 2023-24 ECONOMIC SURVEY vkfFkZd dk;Z foHkkx DEPARTMENT OF ECONOMIC AFFAIRS Government of India 2023-24 G-20 COVER (Main Cover).indd 1 13-07-2024 17:10:02  Economic Survey 2023-24 Government of India Ministry of Finance Department of Economic Affairs Economic Division North Block New Delhi-110001 July, 2024  CONTENTS vii Preface xv Acknowledgement xvii Abbreviations xxxiv List of Tables xxxv List of Charts xliv List of Boxes Chapter No. Page No. Name of the Chapter   1 STATE OF THE ECONOMY: STEADY AS SHE GOES 2 Global Economic Scenario 9 A Resilient Domestic Economy 16 Macroeconomic Stability Safeguards Growth 31 Inclusive Growth 34 Outlook   2 MONETARY MANAGEMENT AND FINANCIAL INTERMEDIATION: STABILITY IS THE WATCHWORD 38 Introduction 39 Monetary Developments 42 Financial Intermediation 43 Performance of the Banking Sector and Credit Availability 63 Trends in Indian Capital Markets 73 Developments in the Insurance Sector 77 Developments in the Pension Sector 82 Assessment and Outlook   3 PRICES AND INFLATION: UNDER CONTROL 85 Introduction 87 Domestic Retail Inflation 89 Core Inflation Dynamics in the Post-pandemic World 93 Food Inflation 97 Interstate Variations in Retail Inflation 98 Outlook and Way Forward 101 Annexure 1   4 EXTERNAL SECTOR: STABILITY AMID PLENTY 104 Introduction 105 Changing Global Trade Dynamics 107 India’s Trade: Resilience Amidst Global Turmoil 133 Favourable Current Account Balance 137 Capital Account Balance 150 International Investment Position  151 Stable External Debt Position 152 Outlook and Challenges   5  MEDIUM TERM OUTLOOK: A GROWTH VISION FOR NEW INDIA 155 Setting the Context 158 Key Areas of Policy Focus in the Short to Medium Term 165 Growth Strategy for Amrit Kaal: Strong, Sustainable and Inclusive 176 Outlook in the Medium Term   6  CLIMATE CHANGE AND ENERGY TRANSITION: DEALING WITH TRADE-OFFS 179 Introduction 183 Present Status of India’s Climate Action 184 Adaptation is Critical for India 187 Low Carbon Development and Energy Composition 200 Putting in Place a Market Framework to Price Carbon: Indian Carbon Market 203 International Commitments on Climate Finance: The Developments 205 India’s International Initiatives to Address Climate Change Issues 207 Conclusion   7  SOCIAL SECTOR: BENEFITS THAT EMPOWER 209 Introduction 211 Dovetailing Growth with Empowering Welfare: A Paradigm Shift 247 Social and Economic Empowerment of Women 254 Rural Economy: Driving the Growth Engine 267 Towards Sustainable Development 269 Conclusion and Way Forward   8 EMPLOYMENT AND SKILL DEVELOPMENT: TOWARDS QUALITY 271 Introduction 272 Current Employment Scenario 276 Youth and female employment 290 The Evolving Landscape of Jobs in India 297 Requirement of Job Creation until 2036 308 Developments and Progress in Skilling 317 Conclusion and Way Forward   9  AGRICULTURE AND FOOD MANAGEMENT: PLENTY OF UPSIDE LEFT IF WE GET IT RIGHT 319 Introduction 322 Agriculture Production: Performance and Promoting Crop Diversification 337 Allied Sectors: Animal Husbandry, Dairying and Fisheries are significant growth drivers 341 Food processing sector (FPI): Processing Potential 342 Food Management: Social net for food security 344 Conclusion   10 INDUSTRY: SMALL AND MEDIUM MATTERS 347 Introduction 350 Performance of Key Sectors and Related Issues 364 Cross-cutting Themes 373 Conclusion and Outlook   11 SERVICES: FUELLING GROWTH OPPORTUNITIES 375 Introduction 376 Overview Of The Services Sector Performance 381 Financing Sources for Services Sector Activity 382 Major Services: Sector-wise Performance 401 Challenges and Opportunities 402 Conclusion and Way Forward   12 INFRASTRUCTURE: LIFTING POTENTIAL GROWTH 405 Introduction 406 Infrastructure financing: the public expenditure push 410 Developments across infrastructure sectors 440 Challenges and Opportunities 442 Facilitation and addressing the bottlenecks 445 Conclusions and Outlook   13  CLIMATE CHANGE AND INDIA: WHY WE MUST LOOK AT THE PROBLEM THROUGH OUR LENS 448 Introduction 449 Why is the Current Approach Flawed? 460 Adopting the Dominant Climate Narrative has Negative Implications for the Developing World 468 The Indian Way: A Sustainable Lifestyle 475 Conclusion  Preface: Steering the country through compacts and consensus The economy continues to expand In April, we commenced a new financial year. In May, we learnt that the Indian economy is estimated to have grown 8.2% in real terms in FY24. In June, a new government took office. The National Democratic Alliance government led by Prime Minister Narendra Modi has returned to power with a historic mandate for a third term. His unprecedented third popular mandate signals political and policy continuity. The Indian economy is on a strong wicket and stable footing, demonstrating resilience in the face of geopolitical challenges. The Indian economy has consolidated its post-Covid recovery with policymakers – fiscal and monetary – ensuring economic and financial stability. Nonetheless, change is the only constant for a country with high growth aspirations. 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 such as trade, investment and climate. High economic growth in FY24 came on the heels of growth rates of 9.7% and 7.0%, respectively, in the previous two financial years. The headline inflation rate is largely under control, although the inflation rate of some specific food items is elevated. The trade deficit was lower in FY24 than in FY23, and the current account deficit for the year is around 0.7% of GDP. In fact, the current account registered a surplus in the last quarter of the financial year. Foreign exchange reserves are ample. Public investment has sustained capital formation in the last several years even as the private sector shed its balance sheet blues and began investing in FY22. Now, it has to receive the baton from the public sector and sustain the investment momentum in the economy. The signs are encouraging. National income data show that non-financial private-sector capital formation, measured in current prices, expanded vigorously in FY22 and FY23 after a decline in FY21. However, investment in machinery and equipment declined for two consecutive years, FY20 and FY21, before rebounding strongly. Early corporate sector data for FY24 suggest that capital formation in the private sector continued to expand but at a slower rate. Sustaining overseas investor interest will require effort Foreign Direct Investment, the subject of much analysis, has held up. RBI data on India’s Balance of Payments shows us that the investment interest of external investors, measured in terms of dollar inflows of new capital, was USD45.8 billion in FY24 compared to USD47.6 billion in FY23. This slight decline is in line with global trends. Reinvestment of earnings remained the same. Repatriation of investment was USD29.3 billion in FY23 and USD44.5 billion in FY24. Many private equity investors took advantage of buoyant equity markets in India and exited profitably. It is a sign of a healthy market environment that offers profitable exits to investors, which will bring newer investments in the years to come. That said, the environment for foreign direct investment to grow in the coming years is not highly favourable for many reasons. Interest rates in developed countries are much higher than they were during and before Covid years. This not only means a higher cost of funding but also a higher opportunity cost to invest abroad. Second, emerging economies have to compete with active industrial policies in developed economies involving considerable subsidies that encourage domestic investment. vii Third, 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. Lastly, geopolitical uncertainties, which are on the rise, will likely exert a bigger influence on capital flows, notwithstanding other reasons for preferring to invest in India. Shocks and not structural forces have influenced employment On employment generation, the Periodic Labour Force Survey provides quarterly data on urban employment indicators and annually for the entire country, including rural India. A surge in agriculture employment is partly explained by reverse migration and the entry of women into the labour force in rural India. The Annual Survey of Industries has data on workers in nearly 2.0 lakh Indian factories. The total number of factory jobs grew annually by 3.6% between 2013-14 and 2021-22. Somewhat more satisfyingly, they grew faster at 4.0% in factories employing more than a hundred workers than in smaller factories (those with less than a hundred workers). The annual growth rate was 1.2% in the latter set of factories. In absolute numbers, employment in Indian factories has grown from 1.04 crore to 1.36 crore in this period. India does not yet have a corresponding Annual Survey of Services. The lack of availability of timely data on the absolute number of (formal and informal) jobs created even at annual intervals, let alone at higher frequencies, in various sectors – agriculture, industry including manufacturing and services – precludes an objective analysis of the labour market situation in the country. The Annual Survey of Unincorporated Enterprises for 2022-23, when compared with the results of the NSS 73rd round of the ‘Key Indicators of Unincorporated Non-Agricultural Enterprises (Excluding Construction) in India’ shows that overall employment in these enterprises fell from 11.1 crore in 2015-16 to 10.96 crores. There was a reduction of 54 lakh workers in manufacturing but the expansion of the workforce in trade and services gained in jobs limited the overall reduction in the number of workers in unincorporated enterprises to around 16.45 lakhs between these two periods. This comparison masks a big jump in manufacturing jobs that seems to have occurred between 2021-22 (April 2021 to March 2022) and 2022-23 (October 2022 to September 2023). India suffered two big economic shocks in quick succession. Bad debts in the banking system and high corporate indebtedness were one. It took the first term of the present government and more to bring it under control. The Covid pandemic was the second shock and quickly followed the first one. So, it is difficult to conclude that the Indian economy’s ability to create employment is structurally impaired. Nonetheless, going forward, the task is cut out. Between the last Economic survey published in January 2023 and this one, big changes are afoot in the geopolitical environment. The global backdrop for India’s march towards Viksit Bharat in 2047 could not be more different from what it was during the rise of China between 1980 and 2015. Then, globalisation was at the cusp of its long expansion. Geopolitics was largely calm with the end of the Cold War, and Western powers welcomed and even encouraged the rise of China and its integration into the world economy. Concerns over climate change and global warming were not so pervasive or grave then as they are now. Fourth, the advent of Artificial Intelligence casts a huge pall of uncertainty as to its impact on workers across all skill levels – low, semi and high. These will create barriers and hurdles to sustained high growth rates for India in the coming years and decades. Overcoming these requires a grand alliance of union and state governments and the private sector. viii Employment generation is the real bottom line for the private sector It is worth reiterating that job creation happens mainly in the private sector. Second, many (not all) of the issues that influence economic growth, job creation and productivity and the actions to be taken therein are in the domain of state governments. So, in other words, India needs a tripartite compact, more than ever before, to deliver on the higher and rising aspirations of Indians and complete the journey to Viksit Bharat by 2047. In more than one respect, the action lies with the private sector. In terms of financial performance, the corporate sector has never had it so good. Results of a sample of over 33,000 companies show that, in the three years between FY20 and FY23, the profit before taxes of the Indian corporate sector nearly quadrupled. Further, newspaper headlines told us that the corporate profits-to-GDP ratio rose to a 15-year high in FY24. BusinessLine reported, “The corporate profit for the Nifty-500 universe was up 30 per cent last fiscal to ₹14.11-lakh crore against ₹10.88 lakh crore in FY23. The nominal GDP grew 9.6 per cent y-o-y to ₹295-lakh crore (₹269-lakh crore)1”. Hiring and compensation growth hardly kept up with it. But, it is in the interest of the companies to step up hiring and worker compensation. The Union government cut taxes in September 2019 to facilitate capital formation. Has the corporate sector responded? Between FY19 and FY23, the cumulative growth in private sector non-financial Gross Fixed Capital Formation (GFCF) is 52% in current prices. During the same period, the cumulative growth in general government (which includes states) is 64%. The gap does not appear to be too wide. However, when we break it down, a different picture emerges. Private sector GFCF in machinery and equipment and intellectual property products has grown cumulatively by only 35% in the four years to FY23. Meanwhile, its GFCF in ‘Dwellings, other buildings and structures’ has increased by 105%. This is not a healthy mix. Second, the slow pace of investment in M&E and IP Products will delay India’s quest to raise the manufacturing share of GDP, delay the improvement in India’s manufacturing competitiveness, and create only a smaller number of higher-quality formal jobs than otherwise. Nonetheless, there is a silver lining in the data. In the two years since FY21, GFCF by the private sector has grown faster. General government GFCF rose a cumulative 42% between FY21 and FY23. Non-Financial Private Sector’s overall GFCF increased by 51%; investment in Machinery and Equipment and Intellectual Property Products increased by 38%. So, the growth in these two critical sub-components of Private Sector GFCF is similar to that of the overall GFCF by the General Government. This is a statistic that bears watching. They should continue to invest. To do so, they need demand visibility. That comes from employment and income growth. In a recent article,2 the Economist cites independent research that predicted a slow demise of India’s services exports over the next decade. While the boom in telecommunications and the rise of the internet facilitated business process outsourcing, the next wave of technological evolution might bring the curtains down on it. In this milieu, the corporate sector has a responsibility, as much to itself as it is to society, to think harder about ways AI will augment labour rather than displace workers. Hiring in the IT sector has slowed significantly in the last two years. We do not have a full picture of overall corporate hiring in the country on a regular 1 ‘Corporate profit to GDP hits 15 year high as input cost moderates’, BusinessLine, 11th June 2024 (https:// www.thehindubusinessline.com/economy/corporate-profit-to-gdp-hits-15-year-high-as-input-cost-moderates/ article68277319.ece) 2 ‘Will Services make the world rich?’, The Economist, 24th June 2024 (https://www.economist.com/finance- and-economics/2024/06/24/will-services-make-the-world-rich) ix basis. In any case, deploying capital-intensive and energy-intensive AI is probably one of the last things a growing, lower-middle-income economy needs. A Staff Discussion Note of the International Monetary Fund published in June 20243 notes that Generative Artificial Intelligence raised profound concerns about massive labour disruptions and inequality. The IMF SDN goes on to recommend well-designed excess corporate profit taxes and high personal income taxes on capital through better enforcement of automatic information exchange between countries and enhanced taxation of capital gains. However, employment is about dignity, self-worth, self-esteem, self-respect, and standing in the family and community, not just about the income it brings. That is why it is in the enlightened self- interest of the Indian corporate sector, swimming in excess profits, to take its responsibility to create jobs seriously. Of course, it must find people with the right attitude and skills. That requires another tripartite compact - between the government, the private sector and academia. This compact is to reboot the mission to skill and equip Indians to catch up with and get ahead of technological evolution. To succeed in the mission, governments must unshackle the industry and academic institutions to play their respective roles in that mammoth task. For example, despite several amendments over the years, the Apprenticeship Act remains a work in progress, at best, in encouraging large-scale apprenticeships in the country. The New Education Policy 2020 proposes freeing India’s higher education from regulatory oversight to market oversight. A corporate sector that helps shape the design of higher education with inputs to curriculum, evaluation standards, and faculty will pave the way for a high-quality higher education that market competition brings, replacing regulatory oversight. If anything, another article4 in The Economist that hails the arrival of China as a superpower in science should be sufficient inspiration for the corporate sector and academia to get their act together on scientific research and development. The real corporate social responsibility The role of the corporate sector has never been greater than it is now. Two other areas of corporate responsibility deserve mention here. The pandemic saw the emergence of the Indian retail investor as the bulwark of market stability. The culture of investing for the long term has to be nurtured and sustained. Market practices that take their cues from the thinly disguised leveraged bets masquerading as financial innovations in the developed world have no place in a developing country with a low per-capita income. Second, just as corporate profits are booming, the net interest margin of Indian banks has risen to a multi-year high. It is a good thing. Profitable banks lend more. To sustain the good times, it is important not to forget the lessons of the last financial cycle downturn. The banking industry must aim to lengthen the gap between two NPA cycles. It should also resist the temptation to pursue short-term profits at the expense of the customer. Product misselling is too rampant to be dismissed as an aberration of a few overenthusiastic sales personnel. The same can be said of the insurance industry as well. Prompt and reasonable settlement of insurance claims and a lower rejection rate are necessary to increase insurance penetration. Acknowledgement of misselling and misrepresentation and compensating for consequential losses is a good business practice enjoined upon stockbroking, fund management, banking and insurance firms. Corporates benefit from the higher demand generated by employment and income growth. The financial sector benefits from channelling household savings for investment purposes. 3 ‘Broadening the gains from Generative AI: the role of fiscal policies’, Staff Discussion Note, International Monetary Fund, June 2024 (https://tinyurl.com/39dy7dv3) 4 ‘China has become a scientific superpower’, The Economist, 12th June 2024 (https://www.economist.com/ science-and-technology/2024/06/12/china-has-become-a-scientific-superpower) x These linkages must grow stronger and last longer to meet the infrastructure and energy transition investments in the coming decades. Short-termism can weaken these linkages. For India’s working-age population to be gainfully employed, they need skills and good health. Social media, screen time, sedentary habits, and unhealthy food are a lethal mix that can undermine public health and productivity and diminish India’s economic potential. The private sector’s contribution to this toxic mix of habits is substantial, and that is myopic. The emerging food consumption habits of Indians are not only unhealthy but also environmentally unsustainable. India’s traditional lifestyle, food and recipes have shown how to live healthily and in harmony with nature and the environment for centuries. It makes commercial sense for Indian businesses to learn about and embrace them, for they have a global market waiting to be led rather than tapped. Governments, on their part… Policymakers – elected or appointed – have to rise to the challenge as well. There has to be conversation, cooperation, collaboration, and coordination across ministries, states, and between the union and states. Few people outside the government – living or dead – can understand the complexity of governing and transforming a nation of India’s (population) size, (geographical) spread and social and cultural diversity within a democratic framework. The political class, with its ears to the ground and the civil service, with its exposure to districts, states and central Ministries, have a better shot at (at least) a partial understanding of this complexity. They intuitively know there is no place for exclusive approaches and binary choices, which are the staple of sterile discussions and discourses. Examples are urban vs. rural, growth vs. equity or development, and manufacturing vs. services. They intuitively know that India needs multiple development pathways. That is a good thing. But it is easier said than done. It has not been done before. Not on this scale. Not in the time frame and not amidst a turbulent global environment. Forging and sustaining consensus between governments, businesses and the social sectors are necessary to succeed in this endeavour. Agriculture can be a growth engine if… The agriculture sector is one area ripe for and in need of such a pan-India dialogue. Agriculture and farmers matter for a nation. Most countries understand that. India is no exception. India subsidises their water, electricity and fertilisers. The former two are provided virtually free. Their incomes are not taxed. The government offers them a minimum support price (MSP) for 23 selected commodities. Monthly cash support is offered to farmers through the PM-KISAN scheme. Indian governments – national and sub-national –write off their loans. So, governments in India spend enough resources to look after the farmers well. Yet, a case can be made that they can be served better with some re-orientation of existing and new policies. A panoply of policies – by national and sub-national governments - working at cross- purposes with each other is hurting farmers’ interests, destroying soil fertility, depleting groundwater, polluting rivers and the environment with nitrous oxide emissions, starving the crops of nutrients and undermining people’s health with a diet rich in sugar and carbohydrates rather than fibre and protein. The payoff will be immense if we untie the knots that bedevil farm sector policies. More than anything else, it will restore faith in the self-confidence and ability of the state to steer the nation to a better future, apart from delivering socio-economic benefits. Earlier development models featured economies migrating from farm beginnings to industrialisation to value-added services in their development journey. Technological advancements and geopolitics are challenging this conventional wisdom. Trade protectionism, xi resource-hoarding, excess capacity and dumping, onshoring production and the advent of AI are narrowing the scope for countries to squeeze out growth from manufacturing and services. That is forcing us to turn conventional wisdom on its head. Can the farm sector be the saviour? A return to roots, as it were, in terms of farming practices and policymaking, can generate higher value addition from agriculture, boost farmers’ income, create opportunities for food processing and exports and make the farm sector both fashionable and productive for India’s urban youth. When resolved, the problem areas mentioned above that the current policy configuration has created over the years can become sources of India’s strength and a model for the rest of the world - developing and developed. Unleashing small enterprises Another area where policy intentions have yet to manifest in desired outcomes is with respect to small, medium, and large enterprises. Earlier, several products were reserved for small- scale industries. That was phased out as it benefitted neither the small-scale industries nor the overall economy. Recent concerted efforts at formalising them are making progress. Progress is relatively slower on access to finance. Buyers and creditors are shedding old mindsets and practices too slowly for these enterprises to feel the effect. However, these enterprises need maximum relief from the compliance burdens they face. Laws, rules and regulations stretch their finances, abilities and bandwidth, perhaps robbing them of the will to grow. Successful Energy transition is an orchestra Other priorities, such as energy transition and mobility, may pale compared to the complexity of getting the farm sector policies right. Still, they have one thing in common with it. They require getting many things across several ministries and states aligned. The list is long. Energy transition and mobility issues require attention in the following areas: (a) resource dependence on hostile nations; (b) technological challenges such as intermittency of power generation, ensuring grid stability amidst surges and drop in generation from renewable energy sources and battery storage (c) recognition of the opportunity cost of tying up land in a land-scarce country; (d) fi  scal implications that involve both additional expenditures for subsidising renewable energy generation and for e-mobility solutions, loss of tax and freight revenue currently accruing from the sale and transportation of fossil fuels; (e) impairment to bank balance sheets from the so-called ‘stranded assets’ and (f) examination of the merits of alternative mobility solutions such as public transportation models and more. Emulating policy practices of other nations may be neither feasible nor desirable, for solutions may not emerge from approaches and places that created the problems in the first place. Letting go is part of good governance While contemplating the challenges that lie ahead, one should not be daunted because the social and economic transformation of democratic India is a remarkable success story. We have come a long way. The economy has grown from around USD288 billion in FY93 to USD3.6 trillion in FY23. India has generated more growth per dollar of debt than other comparable nations. Abject poverty has all but been eliminated. Human development indicators have xii improved, and more Indians, especially women, are getting educated. For all its flaws and warts, the system has delivered accountability through the democratic process and public discourse, where the occasional and rarer mature commentary proves effective. We should not lose sight of that. However, it would be a missed opportunity - as there have been many in the past - not to strengthen a system to steer the country through a future that has become immeasurably uncertain. After nearly eight decades of relative peace at the global level, the world is moving towards a larger and wider conflict with longer-term effects. The Indian state can free up its capacity and enhance its capability to focus on areas where it has to by letting go of its grip in areas where it does not have to. The Licensing, Inspection and Compliance requirements that all levels of the government continue to impose on businesses is an onerous burden. Relative to history, the burden has lightened. Relative to where it ought to be, it is still a lot heavier. The burden is felt more acutely by those least equipped to bear it – small and medium enterprises. It holds them back, leashes their aspirations, and, in the process, holds the country back. On the face of it, it does not seem to matter because the economic growth rates are good, and there are visible signs of progress. But, we will never know the counterfactual: “what it might have been”. Ishopanishad enjoins all of us to let go of (renounce) our possessions, be free and enjoy that freedom: ईशा वास्यमिदं सर्वं यत्किञ्च जगत्यां जगत्। तेन त्यक्तेन भुञ्जीथा मा गृधः कस्यस्विद्धनम्॥ Power is a prized possession of governments. They can let go of at least some of it and enjoy the lightness it creates in both the governed and the governing. Finally,… 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 Economic Survey 2023-24 covers many of the issues discussed above in its several chapters, apart from informing readers of government policies and their performance, their impacts, innovations, developments and success stories worth emulating. As before, the staple content of the Survey is chapters that provide an assessment of the various sectors such as agriculture, industry, infrastructure and services. For us in the Economics Division in the Department of Economic Affairs, putting the Economic Survey together and getting it into your hands or electronic devices is a labour of love. Recording and sharing the country’s progress in the year under review and reflecting on what it must do and must not to achieve the progress it deserves is a learning experience for us. In doing so, we may have made mistakes. Please do tell us. We promise to keep getting better at it. Ultimately, that is all we can and should ask of ourselves. V. Anantha Nageswaran Chief Economic Advisor Ministry of Finance Government of India xiii  Acknowledgment The Economic Survey 2023-24 is the result of a team effort. The Survey has benefitted from the comments and insights of the Hon’ble Finance Minister Smt. Nirmala Sitharaman. The survey sincerely acknowledges the support from the Hon’ble Minister of State for Finance Shri Pankaj Chaudhary, Finance Secretary Dr. T.V. Somanathan, Secretary DEA Shri Ajay Seth, Secretary DIPAM Shri Tuhin Kanta Pandey, Secretary DPE Shri Ali Raza Rizvi, Secretary Financial Services Shri Vivek Joshi and Revenue Secretary Shri Sanjay Malhotra. The contributors to the Survey from the Economic Division and other Divisions of DEA include: Chandni Raina, Antony Cyriac, Anuradha Guru, Anoopa S Nair, Kokila Jayaram, Syed Zubair Naqvi, Dharmendra Kumar, Seema Joshi, Harish Kumar Kallega, Deepika Srivastava, Amit Sheoran, Shreya Bajaj, Megha Arora, Deeksha Supyaal Bisht, Manoj Kumar Mishra, Ritika Bansal, Md. Aftab Alam, Pradyut Kumar Pyne, Esha Swaroop, Radhika Goyal, Harish Yadav, Rajesh Sharma, Mritunjay Kumar, Amit Kumar Kesarwani, Deepdyuti Sarkar, Ajay Ojha, K Chandra Shekar, Rohit Kumar Tiwari, Hema Rana, Aparajita Tripathi, Sonali Chowdhry, Bharadwaj Adiraju, Surabhi Seth, Meera Unnikrishnan, Akash Poojari, Roshan Yadav, Rohit Trivedi, Satyendra Kishore, S. Ramakrishnan, Vishal Gori, Kunal Bansal, Ritesh Kumar Gupta, Dhriti Arora, Muna Sah, Brijpal and personal staff of the officers. Apart from the above, officials of various ministries, departments and organisations of the Government of India contributed in their respective sectors, with comments and inputs. They include: Rajiv Mishra, Solomon Arokiaraj, Baldeo Purushartha, Pravakar Sahoo, Ajay Kumar Sood, Alisha George, Gourav Masaldan, E Srinivas, Nitish Suri, Nilambhuj Sharan, Kamkhenthang Guite, M.G. Jayashree, Dhrijesh Kumar Tiwari, Awadesh Kumar Chaudhary, Shefali Dhingra, R. Rajesh, Yogesh Suri, Kusum Mishra, Bijaya Kumar Behera, A. Srija, P K. Abdul Kareem, C. Vanlalramsanga, Renuka Mishra, Manik Chandra Pandit, Gayatri Nair Manoj Madholia, Surjith Karthikeyan, Vishnukanth PB, Kapil Patidar, Jaipal, Anushree Raha, Chitvan Dhillon, Leena Kumar, Updesh Sharma, Prabhat Kumar Singh, Dharam Prakash, Dalip Kumar, Akhilesh Sharma, S.N. Mishra, Anshuman Kamila, Ishita Ganguli Tripathy, Lalsanglur, Rajasree Ray, Anshu Bharadwaj, Rajnath Ram, Rishika Choraria, Manisha Sensarma, Faiz Ahmed Kidwai, Franklin L. Khobung, A. Pratibha, Indu Butani, V.S. Sehrawat, Kushwant Kumar, Rajesh Kumar, Sabri Bin Kasim, Shanta Sharma, Rahul Meena, Puneet Bhatia, Abhay Bakre, Dhiraj Kumar Srivastava, J. Rajesh Kumar, Ajay Mathur, Amit Prothi, Alpana Saha, Prince Dhawan, Ansy Mathew N.P., A.R. Roy, Ashwini Kumar, Rajkumar, Pramod Kumar Arya, and Subhash Chand. We also received help from several experts, industry bodies, public institutions and private sector entities including SEBI, RBI, IBBI, IFSCA, PFRDA, IRDAI, Tirthankar Patnaik, Sangeeta Gupta, Tanay Dalal, Vrunda Bansode, Bhuvana Anand, Shubho Roy, R. Subrahmanyam, Suchita Dutta, and Prasanna Tantri. Able administrative support was given by Manoj Sahay, Aparna Bhatia, Jasbir Singh, Susruta Samanta, Daleep Kumar, Sunil Kumar Gupta, Pankaj Kumar, Davendra Kumar, Navneet Pathak, Rahul Goel and other staff members of the DEA. xv Hindi translation of the survey was done by Lt. Col. M.K. Singh, Dr. Puran Singh, Harish Singh Rawat, Rajneesh Kumar, Anupam Arya, Samta Rani, Babita Gunjiyal, Jintu Kumer Mandal, Vinay Kumar, Kamlesh Dhamunaya, Archana singh, Maya Meena, Sheo Pujan Chaudhary, Neeraj Mishra, Gaurav Bhatia, Reena Kumari Meena, Surbhi and Shikha from Hindi Section, DEA and Jaiveer, Meenakshi Verma, Manish Bhatnagar, Manoj Kumar, Rajiv Kumar Singh, Diwakar Shukla, Raveesh Ranjan, Dharmendra Kumar from Central Translation Bureau. Hindi version of the survey was typed by Anil Bajaj, Himanshu Sharma, Jiya Lal Maithani, Dinesh Dewan from Directorate of Printing, Minto Road. The cover page for the Survey was designed by Izzur Rahman, Deepak Aggarwal, Goutam Halder, Adit Agarwal and Mohammad Suhail from Signature Printers did page setting of the English and Hindi versions of the Survey. The Economic Survey owes deep gratitude to the families of all those involved in its preparation for their patience and support. V. Anantha Nageswaran Chief Economic Adviser Ministry of Finance Government of India xvi  Abbreviations AAGR Average Annual Growth Rate AAI Airport Authority of India AAUs Assigned Amount Units AAY Antyodaya Anna Yojana ABC Academic Bank of Credits ABDM Ayushman Bharat Digital Mission ABHA Ayushman Bharat Health Account AB-PMJAY Ayushman Bharat Pradhan Mantri Jan Arogya Yojana AB-RPY Aatmanirbhar Bharat Rojgar Protsahan Yojana ABRY Aatmanirbhar Bharat Rojgar Yojana ABS Automatic Block Signaling ACCs Air Cargo Complexes ADB Asian Development Bank ADP Aspirational Districts Programme AEs Advanced Economies AFHC Adolescent Friendly Health Clinic AGEY Aajeevika Grameen Express Yojana AHIDF Animal Husbandry Infrastructure Development Fund AI Artificial Intelligence AI Artificial Intelligence AI IP Artificial Intelligence Intellectual Property AIBP Accelerated Irrigation Benefit Programme AICTE All India Council for Technical Education AIF Alternative Investment Fund AIF Agriculture Infrastructure Fund AIIMS All India Institute of Medical Sciences AIRAWAT AI Research Analytics and Knowledge Dissemination Platform AISHE All India Survey on Higher Education AITIGA ASEAN-India Trade in Goods Agreement AKRSP Aga Khan Rural Support Programme AMCs Asset Management Companies AMI Agricultural Marketing Infrastructure AMRIT Affordable Medicines and Reliable Implants for Treatment AMRUT Atal Mission for Rejuvenation and Urban Transformation APAAR Automated Permanent Academic Account Registry API Application Programming Interface APIs Active Pharmaceutical Ingredients APLM Agricultural Produce and Livestock Marketing APMCs Agricultural Produce Marketing Committees APMR Agricultural Produce Marketing Regulation xvii APY Atal Pension Yojana ARCs Asset Reconstruction Companies ARG Automatic Rain Gauge ARHC Affordable Rental Housing Complexes ARIMA Autoregressive Integrated Moving Average ASBA Application Supported by Blocked Account ASI Annual Survey of Industries ASTROSAT Space Astronomy Observatory ATF Aviation Turbine Fuel ATP Automatic Train Protection AuM Assets under Management AWC Anganwadi Centre AWS Automatic Weather Station BBSSL Bhartiya Beej Sahakari Samiti Limited BDI Baltic Dry Index BE Budget Estimate BFSI Banking, Financial Services and Insurance BFT Bare Foot Technician BHEL Bharat Heavy Electricals Limited BIM Building Information Modelling BIS Bank for International Settlements BoP Balance of Payment BPM Business Process Management BPO Business Process Outsourcing BRO Border Roads Organization BRSR Business Responsibility and Sustainability Report BSF Black Soldier Flies BTS Base Transceiver Stations CACP Commission for Agricultural Costs & Prices CAD Current Account Deficit CAG Comptroller and Auditor General of India CAGR Compound Annual Growth Rate Capex Capital Expenditure CBG Compressed Bio Gas CBIC Central Board of Indirect Taxes and Customs CBM Coal Bed Methane CBSE Central Board of Secondary Education CC Clearing Corporations CCS Carbon Capture and Storage CCTS Carbon Credit Trading Scheme CCUS Carbon Capture, Utilization, and Storage C-DAC Centre for Development of Advanced Computing xviii CDM Clean Development Mechanism CDRI Coalition for Disaster Resilient Infrastructure CDs Certificate of Deposits CECPA Comprehensive Economic Cooperation and Partnership Agreement CEPA Comprehensive Economic Partnership Agreement CERs Certified Emission Reductions CET-I Common Equity Tier-I CFPI Consumer Food Price Index CGA Controller General of Accounts CGS Credit Guarantee Scheme CGTMSE Credit Guarantee Fund Trust for Micro and Small Enterprises CHC Community Health Centre CHCs Custom Hiring Centres CiC Currency in Circulation CII Confederation of Indian Industry CIL Coal India Limited CIP Central Issue Price CIRPs Corporate Insolvency Resolution Processes CIS Customer Information Sheet ckm circuit kilometre CMIE Centre for Monitoring Indian Economy CMM Coal Mine Methane CND Consumer Non-Durables CNG Compressed Natural Gas CO2 Carbon Dioxide COP Conference of the Parties CoPs Conference of Parties CORSIA Carbon Offsetting and Reduction Scheme for International Aviation CPI Consumer Price Index CPI-C Consumer Price Index-Combined CPs Commercial Paper CPSEs Central Public Sector Enterprises CPSU Central Public Sector Undertakings CQGR Compounded Quarterly Growth Rate CRAR Capital to Risk-Weighted Assets Ratio CRISIL Credit Rating Information Services of India Limited CROPIC Collection of Real-time Observations and Photographs of Crops CRP Community Resource Person CRR Cash Reserve Ratio CSIR Council of Scientific and Industrial Research CSL Cochin Shipyard Limited CSO Civil Society Organisation xix CSO Central Statistical Office CSPs Cloud Service Providers CSR Corporate Social Responsibility CSS Central Sector Schemes CV Coefficient of Variation CWS Current Weekly Status CwSN Children with Special Needs DA&FW Department of Agriculture and Farmers Welfare DAHD Department of Animal Husbandry and Dairying DAP Di-ammonium Phosphate DAY-NRLM Deendayal Antyodaya Yojana- National Rural Livelihood Mission DAY-NULM Deendayal Antyodaya Yojana – National Urban Livelihoods Mission DBFOT Design, Build, Finance Operate and Transfer DBI Diversion-Based Irrigation DBT Direct Benefit Transfer DDU-GKY Deen Dayal Upadhyaya Grameen Kaushalya Yojana DEH Districts as Exports Hub DFCs Dedicated Freight Corridors DFI Digital Financial Inclusion DFI Doubling Farmers Income Report DGCA Directorate General of Civil Aviation DGQI Data Governance Quality Index DIETs District Institutes of Education and Training DIKSHA Digital Infrastructure for Knowledge Sharing DISCOMs Distribution Companies DISHA District Development Coordination and Monitoring Committees DoP Department of Posts DPI Digital Public Infrastructure DPIIT Department for Promotion of Industry and Internal Trade DRI Disaster Resilient Infrastructure DRIP Dam Rehabilitation and Improvement Project DRTs Debt Recovery Tribunals DST Dual System of Training DTH Direct to Home EAEU Eurasian Economic Union ECB External Commercial Borrowings ECB European Central Bank ECCE Early Childhood Care and Education ECTA Economic Cooperation and Trade Agreement EFTA European Free Trade Association EI Electronic Interlocking E-LoGS platform Ease of Logistics Services platform xx EMC Electronics Manufacturing Clusters EMDEs Emerging Markets and Developing Economies EMEs Emerging Market Economies EMI Payment Equated Monthly Installment Payment EMI/EMC Electromagnetic interference/Electromagnetic compatibility eNAM National Agriculture Market e-NAM e- National Agriculture Market EPF Employee Provident Fund EPFO Employees’ Provident Fund Organisation ePoS electronic point of sale ER&D Enterprise, Research, and Development ERUs Emission Reduction Units ESG Environmental, Social, and Governance ESS Energy Storage Systems ETCA Economic and Technical Cooperation Agreement ETFs Exchange Traded Funds EU European Union EU-ETS European Union Emission Trading Scheme EVs Electric Vehicles EXIM Export-Import Bank FADA Federation of Automobile Dealers Associations FAO Food and Agriculture Organisation FATF Financial Action Task Force FCI Food Corporation of India FCRA Forward Contracts Regulation Act FDI Foreign Direct Investment Fed Federal Reserve FER Foreign Exchange Reserve FIDF Fisheries Infrastructure Development Fund FLFPR Female Labour Force Participation Rate FLN Foundational Literacy and Numeracy FMC Forward Market Commission FOMC Federal Open Market Committee FPI Food Processing Industry FPI Foreign Portfolio Investment FPOs Farmer Producers Organisation FPS Fair Price Shop FRBs Foreign Reinsurance Branches FSA Financial Sector Assessment FSAP Financial Sector Assessment Program FSDC Financial Stability and Development Council FSR Financial Stability Report xxi FSSA Financial System Stability Assessment Report FSSI Financial System Stress Indicator FTAs Free Trade Agreements FTKs Field Testing Kits FTTH Fibre to the home FY Financial Year FY Financial Year GBS Gender Budget Statement GBS Gross Budgetary Support GCA gross cropped area GCCs Global Capability Centres GCP Green Credit Programme GCT GatiShakti Multi-Modal Cargo Terminal GDP Gross Domestic Product GEC Green Energy Corridor GeM Government e-Marketplace GER Gross Enrolment Ratio GERD Gross Expenditure on Research and Development GFC Global Financial Crisis GFCF Gross Fixed Capital Formation GHE Government Health Expenditure GHG Greenhouse Gases GI Cloud Government of India Cloud GIFT City Gujarat International Finance Tec-City GII Global Innovation Index GNI Gross National Income GNPA Gross Non-Performing Assets GoI Government of India Govt. Government GP Gram Panchayat GPAI Global Partnership on Artificial Intelligence GPDP Gram Panchayat Development Plan GPs Gram Panchayats GSDP Gross State Domestic Product GSLV Geosynchronous Satellite Launch Vehicle GST Goods and Services Tax GST Global Stocktake GT Gross Tonnage GTR Gross Tax Revenue GVA Gross Value Added GVA Gross Value Added GVCs Global Value Chains xxii GW Gigawatt GWeq Giga Watt Equivalent GWMR Groundwater Management & Regulation GWs Giga Watts HAL Hindustan Aeronautics Limited HAM Hybrid Annuity Model HCES Household Consumption Expenditure Survey HEI Higher Education Institution HFC Housing Finance Companies HHI Hershman-Herfindahl Index HKKP Har Khet Ko Pani HML Harmonized List HNIs High Net Worth Individuals HR Human Resources IBA Indian Banks’ Association IBC Insolvency and Bankruptcy Code IBC Insolvency and Bankruptcy Code IBP route Indo Bangladesh Protocol route ICAO International Civil Aviation Organization ICAR Indian Council for Agriculture Research ICDR Issue of Capital and Disclosure Requirements ICDS Integrated Child Development Services ICRIER Indian Council for Research on International Economic Relations ICT Information and Communications Technology IDRCL India Debt Resolution Company Ltd. IEBR Internal and Extra Budgetary Resources IET International Emissions Trading IFRS International Financial Reporting Standards IFSC International Financial Services Centre IFSC GIFT City International Financial Services Centre, Gujarat International Finance Tec-City IFSCA International Financial Services Centres Authority IHHL Individual Household Latrine IIE Indian Institute of Entrepreneurship IIG India Investment Grid IIP International Investment Position IIP Index of Industrial Production IIPDF India Infrastructure Project Development Fund IIT Indian Institute of Technology IITM Indian Institute of Technology, Madras ILIMS Integrated Land Information Management System IMC Indore Municipal Corporation IMEC India-Middle East Europe Corridor xxiii IMEs Informal Micro Enterprises IMF International Monetary Fund India-WRIS India – Water Resource Information System Infra Infrastructure IN-SPACe Indian National Space Promotion and Authorisation Centre INSTC International North-South Transport Corridor InvITs Infrastructure Investment Trusts IoT Internet of Things IPOs Initial Public Offers IR Indian Railways IRCTC Indian Railway Catering and Tourism Corporation Limited IRDAI Insurance Regulatory and Development Authority of India IRFC Indian Railway Finance Corporation IRIS Infrastructure for Resilient Island States ISA International Solar Alliance ISAM Integrated Scheme for Agricultural Marketing ISRO Indian Space Research Organisation IT Information Technology ITI Industrial Training Institute ITMOs Internationally Transferred Mitigation Outcomes IVA Independent Verification Agency IWAI Inland Waterways Authority of India IWT Inland Water Transport JAM Jan Dhan-Aadhaar-Mobile JEE Joint Entrance Examination JJM Jal Jeevan Mission JLG Joint Liability Group JLGs Joint Liability Groups JSS Jan Shikshan Sansthan KCC Kisan Credit Card KLD Kilo liters per day KP Kyoto Protocol Krishi-DSS Krishi Decision Support System KWh Kilowatt-hour L&T Larsen & Toubro LAMA Log Analytics and Monitoring Application LAMP Large Area Multipurpose Societies LCAF Lower Carbon Aviation Fuels LCOE Levelised Cost of Electricity LCR Liquidity Coverage Ratio LeadIT Leadership Group for Industry Transition LEADS Logistics Ease Across Different States xxiv LED Light-Emitting Diode LEDP Livelihood & Enterprise Development Programmes LFPR Labour Force Participation Rate LH&DC Livestock Health and Disease Control LiFE Lifestyle for Environment LMT Lakh Metric Tons LPAI Land Ports Authority of India LPG Liquified Petroleum Gas LPG Liquified Petroleum Gas LPI Logistics Performance Index LT Lakh tonnes Ltd. Limited LT-LEDS Long-Term Low Emission Development Strategy LVM3 Launch Vehicle Mark-3 M&As Mergers and Acquisitions MAHSR Mumbai-Ahmedabad High Speed Rail MAIS Market Access Initiatives Scheme MAM Moderate Acute Malnutrition MANAS Mental Health and Normalcy Augmentation System MCA Ministry of Corporate Affairs MCA Model Concession Agreement MCX Multi Commodity Exchange MEDP Micro Entrepreneurship Development Programme MEITY Ministry of Electronics and Information Technology MFIs Microfinance Institutions MFs Mutual Funds MGNREGA Mahatma Gandhi National Rural Employment Guarantee Act MIF Micro Irrigation Fund MIS Management Information Systems MMLP Multi-Modal Logistics Park MMT Million Metric Tonne MNEs Multinational Enterprises MoAFW Ministry of Agriculture and Farmers Welfare MoE Ministry of Education MoHUA Ministry of Housing & Urban Affairs MOOC Massive Open Online Course MOP Muriate of Potash MoRTH Ministry of Road Transport & Highways MoSPI Ministry of Statistics and Program Implementation MoU Memorandum of Understanding MOVCDNER Mission Organic Value Chain Development for North Eastern Region MPC Monetary Policy Committee xxv MPCE Monthly Per Capita Expenditure MPI Multidimensional Poverty Index MRLs Major Rail Links MRLs Major Rural Links MRO Maintenance, Repair and Overhaul MSCS Multi-State Cooperatives MSF Marginal Standing Facility MSME Micro, Small and Medium Enterprises MSME Ministry of Micro, Small and Medium Enterprises MSP Minimum Support Prices MSP Mineral Security Partnership MtCO2e Million Tonnes of CO2 Equivalent MTM Marked to Market MTOE Million Tonnes of Oil Equivalent MTPA Million Tonnes Per Annum MVA Mega Volt Amp MWeq Mega Watt Equivalent MWs Mega Watts NABARD National Bank for Agriculture and Rural Development NADCP National Animal Disease Control Programme NAFED National Agricultural Cooperative Marketing Federation of India NAPCC National Action Plan on Climate Change NAPS National Apprentice Promotion Scheme NARCL National Asset Reconstruction Company Ltd. NAS National Accounts Statistics NAS National Achievement Survey NASSCOM National Association of Software and Service Companies NavIC Navigation with Indian Constellation NBFC Non-Banking Financial Company NBFCs Non-Banking Financial Companies NCAP-2016 National Civil Aviation Policy NCCF National Cooperative Consumers’ Federation of India NCDC National Cooperative Development Corporation NCDEX National Commodity and Derivative Exchange NCEL National Cooperative Exports Limited NCERT National Council for Educational Research and Training NCF-SE National Curriculum Framework for School Education NCIP National Crop Insurance Programme NCLT National Company Law Tribunal NCOL National Cooperative Organics Limited NCQG New Collective Quantified Goal NCR National Capital Region xxvi NCrF National Credit Framework NCS National Career Service NCTF National Committee on Trade Facilitation NCVET National Council for Vocational Education and Training NDAs Non-Disclosure Agreements NDCs Nationally Determined Contributions NDLM National Digital Livestock Mission NDTSP National Deep Tech Start-up Policy NEER Nominal Effective Exchange Rate NEET National Eligibility cum Entrance Test NEP National Education Policy NEP National Electricity Plan NFA Net Foreign Assets NFHS National Family Health Survey NFSA National Food Security Act NFSM National Food Security Mission NFSM-OS&OP National Food Security Mission- Oilseeds & Oil Palm NGOs Non-Government Organisations NH National Highways NHA National Health Accounts NHAI National Highways Authority of India NHB National Housing Bank NHs National Highways NIDHI National Integrated Database of Hospitality Industry NIESBUD National Institute for Entrepreneurship and Small Business Development NII Net Interest Income NIM Net Interest Margin NIP National Infrastructure Pipeline NITI National Institution for Transforming India NLBC Narayanpur Left Bank Canal NLM National Livestock Mission NLP National Logistics Policy NMCE National Multi Commodity Exchange NMCG National Mission on Clean Ganga NMHS National Mental Health Survey NMP National Monetisation Pipeline NMSA National Mission for Sustainable Agriculture Non-Conv Non-Conventional NPCI National Payments Corporation of India NPDD National Programme for Dairy Development NPK nitrogen, phosphorus, and potassium NPP National Perspective Plan xxvii NPS National Pension Scheme NRLM National Rural Livelihood Mission NSDL National Securities Depository Limited NSIL New Space India Limited NSQF National Skills Qualification Framework NSSO National Single Sign-On NSTI National Skill Training Institute NSVA Nari Shakti Vandan Abhiniyam NTR Non-Tax Revenue NWs National Waterways O&M Operations and Maintenance OCEN Open Credit Enablement Network OCMS Online Computerised Monitoring System ODA Official Development Assistance ODF Open Defecation Free ODOP One District One Product ODR Online Dispute Resolution OECD Organisation for Economic Cooperation and Development OEM Original Equipment Manufacturer OFC Optical Fiber Cable OFPO Off-Farm Producer Organisation OFSTED Office for Standards in Education, Children’s Services and Skills OI Other Interventions ONDC Open Network for Digital Commerce ONGC Oil and Natural Gas Corporation ONORC One Nation One Ration Card OOI Other Operating Income OSOWOG One Sun One World One Grid OTC Over-the-Counter PA Provisional Actuals PACS Primary Agriculture Credit Societies PAR Performance and Accountability Reporting PARAKH Performance Assessment, Review and Analysis of Knowledge for Holistic Development PARIVESH Pro-Active and Responsive facilitation by Interactive, Virtuous, and Environmental Single Window Hub PAT Profit After Tax PAT Perform, Achieve, and Trade PBPB Poshan Bhi Padhai Bhi PCI Per Capita Income PDMC Per Drop More Crop PE Provisional Estimates PFCE Private Final Consumption Expenditure xxviii PFMS Public Financial Management System PFRAI Pension Fund Regulatory and Development Authority of India PHC Primary Healthcare Centre PHH Priority Households PIB Press Information Bureau PKVY Paramparagat Krishi Vikas Yojana PLFS Periodic Labour Force Survey PLI Production Linked Incentive PLI Scheme Production Linked Incentive Scheme PLISFPI Production Linked Incentive Scheme for the Food Processing Industry PM Poshan Pradhan Mantri Poshan Shakti Nirman PM SVANidhi Pradhan Mantri Street Vendor’s AatmaNirbhar Nidhi PMAASHA Pradhan Mantri Annadata Aay Sanraskhan Abhiyan PM-AWAS Pradhan Mantri Awas Yojana PMAY-U Pradhan Mantri Awas Yojana - Urban PMEGP Prime Minister’s Employment Generation Programme PMFBY Pradhan Mantri Fasal Bima Yojana PMFME PM Formalization of Micro Food Processing Enterprises PMG Project Monitoring Group PMGKAY Pradhan Mantri Garib Kalyan Anna Yojana PMGKAY Pradhan Mantri Garib Kalyan Anna Yojana PMGKY P M Gareeb Kalyan Yojana PMGS-NMP PM GatiShakti National Master Plan PMGSY Pradhan Mantri Gram Sadak Yojana PMI Purchasing Managers’ Index PMJJBY Pradhan Mantri Jeevan Jyoti Bima Yojana PMJJY PM Jeevan Jyoti Yojana PM-KISAN Pradhan Mantri Kisan Samman Nidhi PMKMY Pradhan Mantri Kisan Maandhan Yojna PMKSY Pradhan Mantri Kisan SAMPADA Yojana PMKSY Pradhan Mantri Krishi Sinchayee Yojana PM-KUSUM Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan PMKVY Pradhan Mantri Kaushal Vikas Yojana PM-PRANAM PM Programme for Restoration, Awareness Generation, Nourishment & Amelioration of Mother Earth PMSBY Pradhan Mantri Suraksha Bima Yojana PM-SHRI Pradhan Mantri Schools for Rising India PM-SYM Pradhan Mantri Shram Yogi Maan-Dhan POL Petroleum, Oil and Lubricants PPP Public Private Partnership PPPAC Public Private Partnership Appraisal Committee PRAGATI Pro-Active Governance and Timely Implementation xxix PRASHAD Pilgrimage Rejuvenation and Spiritual Augmentation Drive PRAYAG Platform for Real-time Analysis of Yamuna, Ganga, and their tributaries PSF Price Stabilization Fund PSLV Polar Satellite Launch Vehicle PSP Pumped Storage Project PSU Public Sector Undertaking PV Photovoltaic Pvt. Private PVTG Particularly Vulnerable Tribal Groups QIPs Qualified Institutional Placements R&D Research And Development R&D Research & Development RAD Rainfed Area Development RBCF Risk-Based Capital Framework RBI Reserve Bank of India RBSF Risk-Based Supervisory Framework RCS Regional Connectivity Scheme RDN Recommended Dose of Nutrients RDSS Revamped Distribution Sector Scheme RE Renewable Energy RE Revised Estimates REER Real Effective Exchange Rate REEs Rare Earth Elements REITs Real Estate Investment Trusts REN21 Renewable Energy Policy Network for the 21st Century RERA Real Estate (Regulation and Development) Act RF testing Radio Frequency Testing RFID Radio Frequency Identification RGM Rashtriya Gokul Mission RIS Research and Information System rkm route kilometre RKVY Rashtriya Krishi Vikas Yojana RMBS Residential Mortgage-Backed Securities RMS Rabi Marketing Season RoA Return on Asset RoE Return on Equity RPL Recognition of Prior Learning RRTS Regional Rapid Transit System RSETI Rural Self Employment Training Institute RTC Round-The-Clock SaaS Software as a Service SAATHI System for Assessment, Awareness and Training for Hospitality Industry xxx SAF Sustainable Aviation Fuel SAM Severe Acute Malnutrition SAMARTH Sustainable Agrarian Mission on Use of Agri-Residue in Thermal Power Plant SAPCC State Action Plan on Climate Change SARFAESI Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest SBM-G Swachh Bharat Mission – Grameen SCBs Scheduled Commercial Banks SCM Smart Cities Mission SCO Shanghai Cooperation Organisation SCRA Securities Contracts Regulation Act SDF Standing Deposit Facility SDG Sustainable Development Goals SDGs Sustainable Development Goals SDSC-SHAR Satish Dhawan Space Centre Sriharikota SEBI Securities and Exchange Board of India SEWA Self Employed Women’s Association SEZs Special Economic Zones SFAC Small Farmers’ Agri-Business Consortium’s SFBs Small Finance Banks SFT Securities Financing Transactions SHC Secondary Healthcare Centre SHG Self Help Group SHG-BLP SHG-Bank Linkage Programme SHGs Self Help Groups SIBs Systematically Important Banks SIDBI Small Industries and Development Bank of India SIIC Skill India International Centre SKUs Stock Keeping Units SLR Statutory Liquidity Ratio SMAM Sub Mission on Agricultural Mechanization SMR Small Modular Reactors SO2 Sulphur Dioxide SP Special Projects SPECS Scheme For Promotion of Manufacturing of Electronic Components And Semiconductors SPS Sanitary and Phytosanitary SPSEs State Public Sector Enterprises SPVs Special Purpose Vehicles SRB Sex Ratio at Birth SROs Self-Regulatory Organisations SRS Spectrum Regulatory Sandbox SSE Social Stock Exchange xxxi SSLV Small Satellite Launch Vehicle STARS Strengthening of Teaching-Learning and Results for States STEM Science, Technology, Engineering, and Mathematics STPs Sewage Treatment Plants STT Short-Term Training SVAMITVA Survey of Villages and Mapping with Improvised Technology in Village Areas SVEP Startup Village Entrepreneurship Programme SWAMIH Special Window for Affordable and Mid-Income Housing SWAMIH Special Window for Affordable and Mid-Income Housing SWAYAM Study Webs of Active Learning for Young Aspiring Minds SWIFT Single Window Interface for Facilitation of Trade TAs Transaction Advisors TBT Technical Barriers to Trade Telecom Telecommunications TEPA Trade and Economic Partnership Agreement THE Total Health Expenditure TIES Trade Infrastructure for Export Scheme TPA Tri-Partite Agreement TPD Tonnes Per Day TReDS Trade Receivables Discounting System TTDI Travel and Tourism Development Index UAE United Arab Emirates UDAN Ude Desh Ka Aam Nagrik UGC University Grants Commission UHWC Urban Health and Wellness Centre UJALA Unnat Jyoti by Affordable LEDs for ALL ULBs Urban Local Bodies ULIP Unified Logistics Interface Platform ULLAS Understanding of Lifelong Learning for All in Society ULPIN Unique Land Parcel Identification Number UMANG Unified Mobile Application for New-age Governance UN United Nations UNCTAD United Nations Conference on Trade and Development UNDP United Nations Development Programme UNESCAP United Nations Economic and Social Commission for Asia Pacific UNFCCC United Nations Framework Convention on Climate Change UNFPA United Nations Fund for Population Activities UNICEF United Nations Children’s Fund UPHC Urban Primary Health Centre UR Unemployment Rate URP Udyam Registration Portal USD United States Dollar xxxii USOF Universal Services Obligation Fund UT Union Territories UVs Utility Vehicles VBSY Viksit Bharat Sankalp Yatra VCM Voluntary Carbon Market VGF Viability Gap Funding Viz. Videre Licet (Namely) VRR Variable Repo Rate VRRR Variable Rate Reverse Repo WASH Water, Sanitation and Hygiene WEF World Economic Forum WEO World Economic Outlook WHO World Health Organization Wi-Fi Wireless Fidelity WINDS Weather Information Network & Data System WIPO World Intellectual Property Organisation WISE-KIRAN Women in Science and Engineering -Knowledge Involvement in Research Advancement for Nurturing WiTe Zones Wireless Test Zones WITS World Integrated Trade Solutions WPI Wholesale Price Index WPR Worker Population Ratio WQMIS Water Quality Management Information System WSA Wayside Amenities WTO World Trade Organisation YES-Tech Yield Estimation Based on Technology YoY Year-on-Year YoY Year-on-Year ZCZP Zero Coupon, Zero Principal xxxiii  List of Tables Table No. Title Page No. Table I.1 Faster growth since the pandemic-induced contraction 16 Table I.2 Broad-based deployment of Union Government capex 21 Table II.1 Pick-up in transmission to domestic lending and deposit rates 42 Table II.2 India’s performance across indicators of financial inclusion and financial 56 education Table II.3 A cross-country comparison of financial inclusion and financial education 56 parameters Table II.4 India has the second-largest microfinance sector 60 Table II.5 Market capitalisation to GDP ratios across countries 65 Table IV.1 Key aspects of India’s trade 108 Table IV.2 Resilient performance of service trade 118 Table IV.3 India’s key external debt indicators: A snapshot of stability 152 Table VI.1 Institutional architecture of Carbon market in India 200 Table VII.1 Trends in social services expenditure by general government 210 Table VII.2 Key healthcare schemes 221 Table VII.3 Mental health programmes in India 226 Table VII.4 Government initiatives in school education 234 Table VII.5 Status of school infrastructure 239 Table VII.6 Enrolment in higher education from various categories 241 Table VII.7 Quality of life in rural areas 255 Table VII.8 Key indicators on MGNREGS 257 Table VIII.1 Indian factories could hire more workers by adopting competitive per- 287 worker space standards Table VIII.2 Progress of skill development programmes 310 Table X.1 Growth in production, consumption and import of coal 353 Table X.2 Number of vehicles incentivised under Phase II of the FAME Scheme 364 Table X.3 Industry-wise Growth in credit deployment 371 Table X.4 Industrial R&D Facts in India: FY19 to FY21 average 372 Table XI.1 India ranked 39th in Travel and Tourism Development Index, 2024 389 Table XII.1 Infrastructure-related FDI: Key ratios 409 xxxiv  List of Charts Chart No. Title Page No. Chart I.1 Growth: Context Matters. Macroeconomic and political situation of 2 the global economy Chart I.2 Global economy registers strong growth 3 Chart I.3 All major economies have surpassed pre-pandemic GDP levels 4 Chart I.4 Global PMI also corroborates strong growth momentum 5 Chart I.5 Easing of global supply chain pressure 5 Chart I.6 Geopolitical risk perceptions have softened since October 2023 5 Chart I.7 Declining inflationary pressures across countries 6 Chart I.8 Policy rates remain high 6 Chart I.9 Moderation in global commodity price indices 6 Chart I.10 Inversion of US yield curve reflecting enhanced expectation of rate cut 7 Chart I.11 Financial Conditions have eased in the US 7 Chart I.12 Fiscal deficit edged up across countries 8 Chart I.13 Uptick in global debt in 2023 8 Chart I.14 Merchandise trade growth declines in 2023 9 Chart I.15 Weakening FDI inflows 9 Chart I.16 Carry-forward of momentum in economic growth 9 Chart I.17 Broad-based growth 10 Chart I.18 Private consumption steady as investment drives growth 10 Chart I.19 Vehicle sales in rural areas have recovered smartly since the pandemic 11 Chart I.20 Greater general government focus on building productive capacities 12 Chart I.21 Steadily rising private corporate capex 12 Chart I.22 Increased household savings in the form of physical assets 13 Chart I.23 Record housing sales in top 8 cities 13 Chart I.24 SCBs catering to investment demand 13 Chart I.25 Large corporates tapping corporate bond markets 13 Chart I.26 A recovery to pre-pandemic trajectory in GDP 14 Chart I.27 Gap from trend reducing steadily 14 Chart I.28 No permanent losses in output capacity 14 Chart I.29 No permanent consumption losses 14 Chart I.30 Investment has taken off 15 Chart I.31 Industrial GVA growing faster than pre-pandemic trajectory 15 Chart I.32 Services GVA lagging 15 Chart I.33 Steadily declining deficit ratios 17 Chart I.34 Decomposition of fiscal deficit shows increasing investment 17 orientation Chart I.35 Consistent increase in revenue receipts driven by both tax and non-tax 18 revenue Chart I.36 Increase in gross tax revenue to GDP ratio driven by strong direct tax 18 growth xxxv Chart No. Title Page No. Chart I.37 Tax revenues register steady increase 18 Chart I.38 Robust E-way bill generation corroborates strong economic growth 19 momentum Chart I.39 Prudent management of expenditure 20 Chart I.40 Increasing union government effective capex to GDP ratio 20 Chart I.41 Prioritising productive expenditure 20 Chart I.42 Improving quality of expenditure 20 Chart I.43 State gross fiscal deficit under the 3 per cent of GDP mark 23 Chart I.44 Improving quality of states’ expenditure 23 Chart I.45 States’ debt burden is gradually easing 23 Chart I.46 Progressive nature of transfers to states 24 Chart I.47 States’ tax efforts 24 Chart I.48 Total expenditure of states 24 Chart I.49 Fiscal deficit of states 24 Chart I.50 General government liabilities to GDP ratio come off their peak in 25 FY21 Chart I.51 Primary deficit declines, and, growth-interest rate differential remains 25 positive Chart I.52 Declining core inflation but volatile food inflation 27 Chart I.53 India a high-growth and low-inflation economy 27 Chart I.54 CAD narrowed to 0.7 per cent of GDP in FY24 28 Chart I.55 FPI inflows aided in funding CAD and building Forex reserves 28 Chart I.56 The ₹ was one of the most stable currencies over Apr’23 – Jun’24 29 Chart I.57 Forex reserves sufficient to cover around 11 months of imports 29 Chart I.58 A reduction in macro-vulnerability despite increased external 29 uncertainty Chart I.59 Beneficiaries under various government welfare schemes since their 32 inception Chart I.60 Declining unemployment rate and improvement in labour force 33 participation rate and worker population ratio Chart I.61 Reduced rural-urban inequality 33 Chart I.62 Population that is multidimensionally poor has declined 33 Chart II.1 Moderation in growth in Reserve Money (M0) 40 Chart II.2 Growth in Broad Money (M3) 40 Chart II.3 Higher Money Multiplier in FY24, indicating higher liquidity in the 41 market Chart II.4a Liquidity conditions 42 Chart II.4b Policy corridor and overnight call money rate 42 Chart II.5 Double-digit growth in credit disbursal by SCBs 43 Chart II.6 Broad-based growth in bank credit across sectors 46 Chart II.7a Decline in GNPAs of SCBs 47 Chart II.7b CRAR well above the required norms 47 Chart II.8a Return on Assets (Annualised) 48 xxxvi  Chart No. Title Page No. Chart II.8b Return on Equity (Annualised) 48 Chart II.9 High Net Interest Margin of SCBs 48 Chart II.10a Number of resolved cases through approved resolution plans 52 ChartII.10b Realisation by creditors 52 Chart II.11 Rising share of rural MFI borrowers 61 Chart II.12 Rise in loan disbursement by MFIs 61 Chart II.13 Remarkable performance of the Indian Stock Market 64 Chart II.14 SIP Investment on a rising trajectory 68 Chart II.15 Easing of stress in the Indian financial system reflected in FSSI 82 Chart II.16 Broad-based decline in stress levels across financial sectors 82 Chart III.1 India’s inflation lower than EMDEs in 2023 86 Chart III.2 AEs tend to have lower inflation compared to EMDEs 86 Chart III.3 India is closer to its inflation target compared to most other economies 87 Chart III.4 India has one of the lowest average deviations from inflation target 87 Chart III.5 Retail headline inflation was lowest in FY24 since the pandemic 88 Chart III.6 Declining trend in headline and core inflation 88 Chart III.7 ‘Clothing & Footwear’ and ‘Fuel & Light’ groups saw a substantial 89 decline in inflation rate in FY24 Chart III.8 Decreasing global energy index in FY24 89 Chart III.9 Decrease in LPG inflation due to price cut/subsidy 89 Chart III.10 Decline in petrol and diesel inflation due to price reduction measures 89 Chart III.11 Breakdown of core inflation into its components 90 Chart III.12 Core inflation declined to 4 year low in FY24 90 Chart III.13 Monetary policy transmission evident in easing core inflation 90 Chart III.14 Contribution of core services inflation in FY24 lower than pre- 91 pandemic level Chart III.15 9-year low core services inflation driven by lower housing inflation 91 Chart III.16 Persistent core services inflation risk in AEs 92 Chart III.17 Consumer durables inflation closing to pre-pandemic levels 92 Chart III.18 Increased gold and cloth prices drove up inflation in durables 92 Chart III.19 (a) Declining transport component led to easing Consumer Non-Durable 93 & (b) inflation Chart III.20 Contribution of food items to food inflation 94 Chart III.21 Elevated inflation rate in vegetables, pulses and spices 94 Chart III.22 Co-movement of global and domestic edible oil prices 96 Chart III.23 Export ban on sugar led to stable sugar prices in India 96 Chart III.24 Interstate variations in retail inflation in FY24 97 Chart III.25 Interstate variations in rural-urban inflation gap in FY24 98 Chart III.26 Interstate variations in inflation are higher in the rural sector 98 Chart III.27 States with higher inflation show a wider rural-urban gap 98 Chart III.28 Expected decline in overall commodity prices in 2025 99 Chart IV.1 Growth in global merchandise trade: actual and forecast 106 xxxvii Chart No. Title Page No. Chart IV.2 Rising trade openness indicator 107 Chart IV.3 India’s rising share in global goods and services exports 108 Chart IV.4 India’s overall trade performance in the last ten years 109 Chart IV.5 India’s merchandise trade performance 110 Chart IV.6 Composition of merchandise exports across various classifications 110 Chart IV.7 Trend in India’s exports and imports of toys 111 Chart IV.8 Rising defence exports 112 Chart IV.9 Trend in footwear exports 113 Chart IV.10 Rising domestic production, domestic demand and exports of 114 smartphones Chart IV.11 India’s export destination 115 Chart IV.12 Composition of merchandise imports across various classifications 117 Chart IV.13 Remarkable performance of India’s services trade in the last ten years 118 Chart IV.14 Remarkable growth of GCCs in India 119 Chart IV.15 Rising share of GVC-related trade in gross trade 122 Chart IV.16 Share of different manufacturing sub-sectors in GVC-related trade 123 Chart IV.17 Share of different services sub-sectors in GVC-related trade 123 Chart IV.18 Rise in the share of pure backward GVC participation 124 Chart IV.19 Decline in dwell time for India 132 Chart IV.20 Improvement in CAD during FY24 133 Chart IV.21 Current account balance as a percentage of GDP: India vs select 133 countries Chart IV.22 India emerged as the top remittance recipient in the World in 2023 134 Chart IV.23 Higher remittances offsetting the goods trade deficit and stabilising 135 CAD Chart IV.24 Association between gross remittances and crude oil price of Indian 136 Basket Chart IV.25 Positive association of INR/USD and remittances 137 Chart IV.26a Net FPI inflows into India 138 Chart IV.26b Net Equity inflows among emerging market peers during FY24 138 Chart IV.27a Moderation in net FDI inflows in FY24 owing to a rise in repatriation 139 Chart IV.27b Decline in net FDI inflows as per cent of GDP 139 Chart IV.28 Trends in FDI equity inflows to both Industry and Services 140 Chart IV.29a Share of physical and digital FDI in total FDI 141 Chart IV.29b Global capital flows in tech start-ups 141 Chart IV.30a Investment intention as a predictor of future FDI Inflows 141 Chart IV.30b Positive correlation between FDI inflows and concentration of FDI 141 across sectors Chart IV.31 India witnessed the most significant increase in foreign exchange 145 reserves holdings in FY24 Chart IV.32 Adequacy of India’s forex reserves: A cross-country perspective 146 Chart IV.33 Volatility of Rupee/USD exchange rate 146 Chart IV.34 Exchange rate volatility of other countries w.r.t USD in FY24 147 xxxviii  Chart No. Title Page No. Chart IV.35 Trends in net purchase and sale of foreign currencies by RBI during 147 FY24 Chart IV.36 Movement of Index of 40-Currency NEER and REER 148 Chart IV.37a Net IIP and as a percentage of GDP 150 Chart IV.37b Asset liabilities ratio 150 Chart IV.38 India’s stable external debt position and vulnerability indicators 151 Chart VI.1 India’s primary energy supply mix in 2022-23 and installed power 188 capacity in 2024 in terms of fuel sources Chart VI.2 Energy flow in India 189 Chart VI.3 Target emissions reductions to achieve the NDC commitment by 2030 190 Chart VI.4 Land per capita in India is the lowest among the G20, 2021 195 Chart VI.5 Geographical distribution of critical mineral global supply chains, 197 2023 Chart VI.6 Share of refined material production by country in 2020 and 2023 197 Chart VI.7 Geographical concentration of Magnet rare earths over the years 198 Chart VII.1(a) Annual CSR spending in India 216 Chart VII.1(b) Total CSR spent: Top five states, FY 22 217 Chart VII.2 Decline in Multidimensional Poverty 219 Chart VII.3 Decline in the deprivations across the multidimensionally poor 219 population Chart VII.4 CAGR in MPCE: 2011-12 to 2022-23 221 Chart VII.5a Government health expenditure and out of pocket expenditure as per 230 cent of total health expenditure Chart VII.5b Social security expenditure and private health insurance expenditure 230 as per cent of total health expenditure Chart VII.6 Total students’ enrolments in higher education 241 Chart VII.7 Growth in enrolment in higher education institutions between 2014-15 242 and 2021-22 Chart VII.8 Gross expenditure on R&D 245 Chart VII.9 Contribution to high quality research papers by top ten countries in 246 the Nature Index Chart VII.10 Participation of government, business enterprise & higher education 246 sector, 2020 Chart VII.11 Composite indicator of rural activity 256 Chart VII.12 Ratio of proportion of MGNREGA fund released to States and 259 proportion of their Poor population Chart VII.13 Unemployment rate and MGNREGA fund released in FY 2022-23 260 Chart VII.14 Comparison of per-capita incomes and Notified wage rates 260 Chart VII.15 India’s progress in SDGs 267 Chart VII.16 State/UT wise performance on SDG India Index 268 Chart VIII.1 Improving annual labour market indicators 273 Chart VIII.2 Declining quarterly urban employment rate 274 Chart VIII.3 Distribution of workers by broad industry division, 2022-23 274 Chart VIII.4 Trend in broad category wise employment status 275 xxxix  Chart No. Title Page No. Chart VIII.5 Share of female workforce in self-employment 275 Chart VIII.6 Youth employment indicators 276 Chart VIII.7 Rural India drives the rise in female LFPR 277 Chart VIII.8 Trend in employment in organised manufacturing sector 278 Chart VIII.9 Trend in employment per factory 278 Chart VIII.10 Growth in wages per worker 278 Chart VIII.11 Top six states in the number of factories and employment 279 Chart VIII.12 Top six states in five years growth in employment in factories 279 Chart VIII.13 Predominance of smaller factories while larger factories generate a 280 bigger chunk of employment Chart VIII.14 Larger factories pay better wages 280 Chart VIII.15 Higher employment growth in larger factories 281 Chart VIII.16 Share in factory employment in FY22 281 Chart VIII.17 Total growth in employment in 5 years 282 Chart VIII.18 Rising EPFO membership 282 Chart VIII.19 Net payroll addition in EPFO 283 Chart VIII.20 Vacancies mobilised under NCS 283 Chart VIII.21 India has a higher overtime wage premium 286 Chart VIII.22 Number of activities restricted for women across states 287 Chart VIII.23a YoY Growth in nominal rural wages, Men 289 Chart VIII.23b YoY Growth in real rural wages, Men 289 Chart VIII.24 Annual requirement for non-farm job creation 2024-2046 297 Chart VIII.25 Growth contract staffing workforce in past 10 years 298 Chart VIII.26 Sectoral distribution of flexi workforce in 2023 299 Chart VIII.27 Impact of lack of access to childcare: A conceptual model 304 Chart VIII.28 Rise in the percentage of persons aged 15-29 years who received 309 formal vocational/technical training Chart VIII.29 India at WorldSkills Competitions 309 Chart IX.1 Growth of agriculture and allied sectors 320 Chart IX.2 International productivity comparison for major kharif crops 321 Chart IX.3 Production of major crops 322 Chart IX.4 GCF of agriculture & allied Sector as a percentage of GVA of 324 agriculture & allied sector Chart IX.5 Water use per ton of food for major crops India and world average 326 Chart IX.6 MSP of major crops from 2021-22 to 2023-24 330 Chart IX.7 Growth of cereals and poultry products 337 Chart IX.8 Number of single state and Multi-state cooperatives (MSCS) 340 registered by major states Chart IX.9 Share of FPI in manufacturing GVA and growth of FPI in per cent 341 Chart IX.10 Food Subsidy released 344 Chart X.1 Share of industry and its components in total GVA 348 Chart X.2 Annual growth of industry and its components 348 xl Chart No. Title Page No. Chart X.3 India Manufacturing Purchasing Managers’ Index 348 Chart X.4 Average annual growth in components of manufacturing GVA 348 Chart X.5 Change in share of manufactured products GVA in total GVA 349 Chart X.6 Installed capacity, production and capacity utilisation of cement 350 industry Chart X.7 Average annual growth of finished steel 352 Chart X.8 Annual growth of finished Steel 352 Chart X.9 India was a net exporter of finished steel in 4 out of the last 5 years 352 Chart X.10 Coal production as per cent of domestic consumption 353 Chart X.11 Turnover, export and import of the pharma sector 355 Chart X.12 Domestic turnover growth in the pharma sector 355 Chart X.13 Share of non-corporate GVA in the total textile (including apparel) 358 GVA Chart X.14 Total exports of textile products 358 Chart X.15 Growth in production and trade of electronics items 360 Chart X.16 Performance of automotive parts industry 362 Chart X.17 Annual growth in the production of different categories of automobiles 363 Chart X.18 Actual sector-wise investment under the PLI scheme 365 Chart X.19 Guarantees approved under CGTMSE increased considerably 366 Chart X.20 Improvement in performance of CPSEs between FY19 and FY23 369 Chart X.21 Number of profit-making CPSEs has improved 370 Chart X.22 Growth in deployment of gross bank credit to industry 370 Chart X.23 Share of sub-sectors in industrial R&D spending in India 372 Chart XI.1 Increasing trend of GVA in the services sector 376 Chart XI.2 Strong momentum in services sector GVA growth 376 Chart XI.3 Post COVID firming up in the share of the services sector in overall 377 GVA Chart XI.4 Broad-based growth in the services sector 377 Chart XI.5 Economic activity-wise distribution of active companies 378 Chart XI.6 PMI Services touched new heights in FY24 amidst global flux 379 Chart XI.7 Export contributions of four key sub-sectors within services 380 Chart XI.8 Robust bank credit build-up and growth in FY24 381 Chart XI.9 Moderation in FDI equity inflows in the services sector 382 Chart XI.10 Persistent progress in railway freight traffic 384 Chart XI.11 Railway passenger traffic on recovery path post-COVID 384 Chart XI.12 Sustained increase in shipping tonnage capacity 385 Chart XI.13 Growth in air cargo traffic 386 Chart XI.14 Accelerating growth in air passengers handled 386 Chart XI.15 Steady progress in India’s ranking in international tourist arrivals 387 Chart XI.16 Resilient recovery of international tourist ar