The availability of a trained workforce, the tension between energy security and economic growth, the danger that artificial intelligence poses to the services sector, and the timing of the Interim Budget declaration are the four issues that the Finance Ministry has identified as affecting the Indian economy. "The Indian Economy: A Review" differs from the Economic Survey, which is published the day before the Budget is announced. The whole Economic Survey will be revealed after the general elections in April-May 2024, prior to the entire budget, because this is a vote-on-account budget.
According to the government, by 2030, the country's economy can reach $7 trillion. This target is set for the next six to seven years. On the other hand, it detailed the difficulties encountered by the Indian economy.
In a time when the world economy is becoming more interconnected, the Finance Ministry of India pointed out that India's prospects for economic growth are dependent on both domestic performance and the spillover effects of global events. "Increased geoeconomic fragmentation and the slowdown of hyper-globalisation are likely to result in further friend shoring and onshoring, which are already having repercussions on global trade and, subsequently, on global growth," according to the paper. The government has stated that governments worldwide face a significant issue from the introduction of AI due to the possible effects on employment in the services industry. India is keenly interested in this because the services sector accounts for more than half of India's gross domestic product.
Developing nations' carbon objectives and economic growth ambitions have drawn scrutiny in light of the global climate change movement's zealous pursuit of solutions. As part of the net zero goal, India has committed to using only renewable energy sources by the year 2070. "The trade-off between energy security and economic growth versus energy transition is a multifaceted issue having various dimensions: geopolitical, technological, fiscal, economic and social, and the policy actions being pursued by individual countries impacting other economies," according to the research.
Last but not least, the government views the availability of a trained and "appropriately" talented staff in the industry as a hurdle to economic progress.
Domestically, major policy goals in the next years include making sure the industry has access to a talented and adequately skilled labor, making sure all levels of schools teach at the appropriate age, and making sure the population is healthy and fit. "The economically productive workforce is enhanced by a healthy, educated, and skilled population," it stated.
The Indian government has predicted that the GDP will expand by 7% or more in the fiscal year 2024. Even in FY25, some experts think we can see a comparable rate of growth. "If the prognosis for FY25 turns out to be right, that will mark the fourth year post-pandemic that the Indian economy will have grown at or over 7 per cent," according to the research.
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