A review of the Indian economy by the Finance Ministry has estimated India’s growth at 7 percent or above for FY24. Growing at this rate while the world economy is struggling to grow at around 2 percent will be impressive, it adds. There is little doubt that our economy has for quite some time now been performing well, but if the global economic challenges, particularly geopolitical conflicts continue in 2024, new challenges will arise for India as well.

The report presents some interesting facts about India’s social transformation, adding that with Central government's expenditure on social services increasing at a Compound Annual Growth Rate (CAGR) of 5.9 percent between FY 2014 and 2023, the lives of the common person now look remarkably better. Several key improvements have been recorded in areas like poverty reduction, primary healthcare, education, financial security, skill development, etc.

The report, while pointing out some priority areas for future reforms, states about reduction in compliance burden for MSMEs. Ahead of the Budget, experts also anticipate a lot of such measures, including simplified regulatory procedures, but there should also be some urgent steps to address the lingering problem of lack of credit availability and higher interest rates. This sector, with its immense employment generation and social transformation prowess, must be a priority.