Important Highlights of Budget 2023-24

UNION BUDGET 2023-24

Total Expenditure
Union Finance Minister Nirmala Sitaraman  The government is estimated to spend Rs
presented the budget 2023-24 on 1st February 2023 45,03,097 crore in 2023-24. This is an increase
in the Parliament. According to Article 112 of the of 7.5% over the revised estimate of 2022-23.
 Out of the total expenditure,
Indian Constitution, the Union Budget of a year,
  revenue expenditure is estimated to be
also referred to as the annual financial statement, Rs 35,02,136 crore (1.2% increase) and
is a statement of the estimated receipts and   capital expenditure is estimated to be Rs
expenditure of the government for that particular 10,00,961 crore (37.4% increase).
year.  The increase in capital expenditure is due to an
 The government has estimated a nominal GDP increase in capital outlay on transport (including
growth rate (i.e., real growth plus inflation) of railways, roads and bridges, and inland water
transport) by Rs 1,28,863 crore (36.1% increase).
10.5% in 2023-24.
 Expenditure on total capital outlay is estimated
 Government has adhered to path of fiscal
to be Rs 8,37,127 crore in 2023-24, an increase
prudence as Fiscal deficit target of 6.4% of 35% over the revised estimates for 2022-23.
achieved in the Revised Estimate for FY 2022- Total Receipt
23;  Total Receipts: Government receipts (excluding
  and Fiscal Deficit in 2023-24 is targeted at borrowings) are estimated to be Rs 27,16,281
5.9% of GDP. crore, an increase of 11.7% over the revised
 The government proposes to spend Rs estimates of 2022-23.
 The gap between these receipts and the
45,03,097 crore in 2023-24, which is an increase
expenditure will be plugged by borrowings,
of 7.5% over the revised estimate of 2022-23.
budgeted to be Rs 17,86,816 crore, an increase
 The centre gave a boost to infrastructure of 1.8% over the revised estimate of 2022-23.
development and earmarked Rs 10 lakh crore Transfer to states:
as capital expenditure for financial year 2023-  The central government will transfer Rs
24. 18,62,874 crore to states and union territories in
  This is 33% higher than the Rs 7.5 lakh 2023-24, an increase of 8.9% over the revised
estimates of 2022-23.
crore allocated in the fiscal 2022-23.
 Transfer to states includes devolution of Rs
 Person with annual Income up to Rs 7 lakh will
10,21,448 crore out of the divisible pool of
not have to pay any tax, central taxes, grants worth Rs 6,86,773 crore,
 Also number of slabs in the tax structure and special loans worth Rs 1.3 lakh crore for
introduced in 2020 has been reduced to five. capital expenditure.
CURRENT DRISHTI (30)2023
 Rupee Comes From Rupee Goes To
Pensions (4%)
Other Expenditure
(8%) Interest Payments
(20%)
Union Excise Income Tax
Duties (7%) (15%) Borrowing and
Other States' share of Taxes
Liabilities (34%) and Duties (18%)
Centrally Sponsored
Corporation Tax Schemes (9%)
(15%)

Finance Commission and Subsidies (7%)

Non-Tax Receipts (6%) Other transfers (9%)
Goods & Services Tax Non-Debt Capital Receipts (2%)
& Other Taxes (17%) Customs (4%) Defence (8%)
Central Sector
Schemes (17%)

Break up of central government receipts in Non-tax receipts:

2023-24  Non-tax revenue consists mainly of interest
Indirect taxes: receipts on loans given by the centre, dividends,
 The total indirect tax collections are estimated license fees, tolls, and charges for government
to be Rs 15,29,200 crore in 2023-24. Of this, the services.
government has estimated to raise Rs 9,56,600
 Dividend receipts were lower in 2022-23 than
crore from GST.
originally budgeted mainly on account of lower
 Out of the total tax collections under GST,
85% is expected to come from central GST dividend from Reserve Bank of India.
(Rs 8,11,600 crore), and 15% from the GST  In 2023-24, non-tax revenue is expected to
compensation cess (Rs 1,45,000 crore). increase by 15% over the revised estimates
Corporation tax: of 2022-23.
 The collections from taxes on companies are Disinvestment target:
expected to increase by 10.5% in 2023-24. In  The disinvestment target for 2023-24 is Rs
2022-23, corporate tax collection is expected
51,000 crore.
to be 16% higher than the budget estimate (Rs
 This is a marginal increase of 2% over the
7,20,000 crore).
 Income tax: The collections from income tax revised estimate of 2022-23 (Rs 50,000
are also expected to increase by 10.5% in 2023- crore).
24 to Rs 9,00,575 crore. Income tax collection  In 2022-23, the receipts from disinvestment
is expected to be 16.4% higher than the budget are expected to be 23% lower than the
estimate in 2022-23. budget estimate.
Break up of central government expenditure in 2023-24
Table : Ministry wise expenditure in 2023-24 (Rs. Crore)
Actuals Budget Revised Budgeted % Change
2021-22 2022-23 2022-23 2023-24 (2022-23 RE
to 2023-24
BE)
Defence 5,00,681 5,25,166 5,84,791 5,93,538 1.5%
Road Transport and Highways 1,23,551 1,99,108 2,17,027 2,70,435 24.6%
Railways 1,35,242.14 1,40,367.13 1,62,311.90 2,41,267.51 75%
Food and Public Distribution 3,06,571 2,17,684 2,96,523 2,05,765 -30.6%
Home Affairs 1,68,791 1,85,777 1,93,912 1,96,035 1.1%
Chemicals and Fertilisers 1,54,789 1,07,715 2,27,681 1,78,482 -21.6%
2023 (31) CURRENT DRISHTI
 Rural Development 1,61,643 1,38,204 1,82,382 1,59,964 -12.3%
Agriculture and Farmers' Welfare 1,22,836 1,32,514 1,18,913 1,25,036 5.1%
Communications 51,545 1,05,407 1,05,478 1,23,393 17.0%
Education 80,352 1,04,278 99,891 1,12,899 13.0%
Jal Shakti 83,467 86,189 74,029 97,278 31.4%
Health and Family Welfare 84,470 86,201 79,145 89,155 12.6%
Housing and Urban Affairs 1,06,840 76,549 74,546 76,432 2.5%
Other Ministries 17,13,022 18,39,751 17,70,613 20,33,419 14.8%
Total Expenditure 37,93,801 3944,909 41,87,232 45,03,097 7.5%
Sources : Expenditure Budget, Union Budget 2023-24.

Table : Scheme wise Allocation in 2023-24 (Rs. Crore)

Actuals Budget Revised Budgeted % Change
2021-22 2022-23 2022-23 2023-24 (2022-23 RE
to 2023-24
BE)
Pradhan Mantri Awas Yojna 90,020 48,000 77,130 79,590 3.2%
Jal Jeevan Mission/National Rural Drinking 63,126 60,000 55,000 70,000 27.3%
Water Mission
PM-KISAN 66,825 68,000 60,000 60,000 0.0%
MGNREGS 98,468 73,000 89,400 60,000 -32.9%
National Educational Mission 25,305 39,553 32,612 38,953 19.4%
National Health Mission 32,958 37,160 33,708 36,785 9.1%
Modified Interest Subvention Scheme* – 19,500 22,000 23,000 4.5%
Saksham Anganwadi and POSHAN 2.0 18,382 20,263 20,263 20,554 1.4%
Pradhan Mantri Gram Sadak Yojana 13,992 19,000 19,000 19,000 0.0%
AMRUT and Smart Cities Mission 13,868 14,100 15,300 16,000 4.6%
National Livelihood Mission-Ajeevika 10,177 14,236 13,886 14,129 1.7%
Guarantee-Emergency Credit Line to 7,445 15,000 10,500 14,100 34.3%
MSME borrowers
Pradhan Mantri Fasal Bima Yojna 13,549 15,500 12,376 13,625 10.1%
Swachh Bharat Mission 5,050 9,492 7,000 12,192 74.2%
Reform Linked Distribution Scheme 814 7,566 6,000 12,072 101.2%
Note : The Modified Interest Subvention Scheme replaced the scheme for interest subsidy for short term
credit to farmers (the actual expenditure towards this scheme is Rs. 21,477 crore in 2021-22).
Source : Expenditure Profile, Union Budget 2023-24.
Expenditure on Subsidies  Fertiliser subsidy: Expenditure on fertiliser
 In 2023-24, the total expenditure on subsidies is subsidy is estimated at Rs 1,75,100 crore in
estimated to be Rs 4,03,084 crore, a decrease of 2023-24. This is a decrease of Rs 50,120 crore
28.3% from the revised estimate of 2022-23. (22.3%) from the revised estimate of 2022-23.
 Food subsidy: Allocation to food subsidy is Loans to states for capital expenditure
estimated at Rs 1,97,350 crore in 2023-24, a  The Centre has budgeted Rs 1.3 lakh crore
31.3% decrease over the revised estimate of for special interest-free loans to states for
2022-23. capital expenditure.
CURRENT DRISHTI (32)2023
Deficits:  Primary deficit in the budget estimate 2022-23
Fiscal deficit is 2.3% of GDP while it is 3.0% of GDP in
 The difference between total revenue and total
revised estimate of 2022-23.
expenditure of the government is termed as
fiscal deficit. It is an indication of the total Fiscal Responsibility and Budget Management
borrowings needed by the government. Targets
 Fiscal deficit in 2023-24 is targeted at 5.9% of
 The Fiscal Responsibility and Budget
GDP, lower than the revised estimate of 6.4%
of GDP in 2022- 23. Management (FRBM) Act, 2003 requires the
Revenue deficit central government to progressively reduce
 The excess of expenses over receipts on revenue
its outstanding debt, revenue deficit and fiscal
account is called revenue deficit. Revenue deficit
= Revenue Expense – Revenue Receipts . deficit, and give three year rolling targets.
 Revenue deficit is targeted at 2.9% of GDP in  In the Budget speech, the finance minister
the budget estimate of 2023-24. It is 4.1% of reiterated the government’s aim to reduce fiscal
GDP in revised estimate of 2022-23.
deficit to below 4.5% of GDP by 2025-26.
Effective Revenue Deficit
 Effective Revenue Deficit is the difference  Outstanding Liabilities:
between revenue deficit and grants to states for  Outstanding liabilities is the accumulation
creation of capital assets. of borrowings over the years. A higher debt
 Effective revenue deficit in the budget estimates
of 2023-24 is 1.7 %of GDP while it is 2.9 % of implies that the government has a higher loan
GDP in revised estimate of 2022-23. repayment obligation over the years.
Primary Deficit  From 2019-20 onwards, outstanding liabilities
 Primary deficit is defined as the difference
have been increasing, and reached a high of
between the fiscal deficit and the previous year
interest payments of the government. 61% in 2020-21.
 They declined to 57% in 2021-22, and are
expected to remain at that level in 2023-24.
Actuals Revised Budgeted
2021-22 2022-23 2023-24
Fiscal Deficit 6.7% 6.4% 5.9%

Revenue Deficit 4.4% 4.1% 2.9%

Primary Deficit 3.3% 3.0% 2.3%

Sources : Medium Term Fiscal Policy Statement,
Union Budget 2023-24.

Budget at a Glance
(in Rs. Crore)
2021-22 2022-23 2022-23 2023-24
Actuals Budget Revised Budget
Estimates Estimates Estimates
1. Revenue Receipts 2169905 2204422 2348413 2632281
2. Tax Revenue (Net to Centre)1 1804793 1934771 2086662 2330631
2023 (33) CURRENT DRISHTI
 3. Non Tax Revenue 365112 269651 261751 301650
4. Capital Receipts 1623896 1740487 1838819 1870816
5. Recovery of Loans 24737 14291 23500 23000
6. Other Receipts 14638 65000 60000 61000
7. Borrowings and Other Liabilities2 1584521 1661196 1755319 1786816
8. Total Receipts (1 + 4) 3793801 3944909 4187232 4503097
9. Total Expenditure (10 + 13) 3793801 3944909 4187232 4503097
10. On Revenue Account of which 3200929 3194663 3458959 3502136
11. Interest Payments 805499 940651 940651 1079971
12. Grants in Aid for Creation of Capital 242646 317643 325588 369988
Assets
13. On Capital Account 592874 750246 728274 1000961
14. Effective Capital Expenditure (12 835520 1067889 1053862 1370949
+ 13)
15. Revenue Deficit (10 – 1) 1031021 990241 1110546 869855
(4.4) (3.8) (4.1) (2.9)
16. Effective Revenue Deficit (15 – 12) 788375 672598 784958 499867
(3.3) (2.6) (2.9) (1.7)
17. Fiscal Deficit (9 – (1 + 5 + 6)] 1584521 1661196 1755319 1786816
(6.7) (6.4) (6.4) (5.9)
18. Primary Deficit (17 – 11) 779022 720545 814668 706845
(3.3) (2.8) (3.0) (2.3)
1. RE 2022-23 is reduced by Rs. 32,607 crore on account of net amount payable by Centre for prior
years. Growth in BE 2023-24 over RE 2022-23 is 10% excluding prior year adjustment.
2. Includes drawn-down of Cash Balance.
Notes :
(i) Nominal GDP for BE 2023-24 has been projected at Rs. 3,01,75,065 crore assuming 10.5% growth
over the estimated Nominal GDP of Rs. 2,73,07,751 crore as per the First Advance Estimates of
FY 2022-23.
(ii) Individual items in this document may not sum up to the totals due to rounding off.
(iii) Figures in parenthesis are as a percentage of GDP.
Important tax proposals in the Finance Bill 10% Rs. 5 lakh to Rs. 7.5 Rs. 6 lakh to Rs. 9
Income tax regime: lakh lakh
 Currently, those with income up to Rs 5 lakh 15% Rs. 7.5 lakh to Rs. Rs. 9 lakh to Rs. 12
can avail a rebate and not pay any tax this limit 10 lakh lakh
has been raised to Rs 7 lakh. 20% Rs. 10 lakh to Rs. Rs. 12 lakh to Rs.
 The number of tax slabs has been reduced from 12.5 lakh 15 lakh
six to five. 25% Rs. 12.5 lakh to Rs. –
Tax Rate Current Income Proposed Income 15 lakh
Slab Slab 30% Above Rs. 15 lakh Above Rs. 15 lakh
Nil Up to Rs. 2.5 lakh Up to Rs. 3 lakh
5% Rs. 2.5 lakh to Rs. Rs. 3 lakh to Rs. 6  The surcharge on the income when it exceeds
5 lakh lakh Rs 5 crore will be reduced from 37% to 25%.
CURRENT DRISHTI (34)2023
Indirect Taxes: Priorities of this Budget
 Minor changes in the basic custom duties, 1. The Budget adopts the following seven
cesses and surcharges on some items including priorities. They complement each other and act
toys, bicycles, automobiles and naphtha. as the ‘Saptarishi’ guiding us through the Amrit
 Customs duty on camera lens and its inputs/
Kaal.
parts for use in manufacture of camera module
of cellular mobile phone reduced to zero and Saptarishi-7 Priorities
concessional duty on lithium-ion cells for
Inclusive Reaching the
batteries extended for another year.
Development Last Mile
 The upper limit on turnover for MSMEs to be
eligible for presumptive taxation has been raised
from Rs 2 crore to Rs 3 crore. Infrastructure
Youth Power
and Investment
 Co-operative societies: The income tax rate
Amrit
for new co-operative societies engaged in
Kaal
manufacturing activities has been lowered from Unleashing the Financial
22% to 15% (plus 10% surcharge. Potential Sector

Important Announcement in the budget Speech

 This Budget hopes to build on the foundation
Green Growth
laid in the previous Budget, and the blueprint
drawn for India@100.
Vision for Amrit Kaal Priority 1: Inclusive Development
1. Opportunities for Citizens with focus Agriculture and Cooperation
on the Youth  Digital public infrastructure for agriculture will
2. Growth and Job Creation be built.
3. Strong and Stable Macro-Economic  An Agriculture Accelerator Fund will be
Environment set-up to encourage agri-startups by young
Achievements entrepreneurs in rural areas.
 Per capita income has more than doubled to Rs.
 Government will launch an Atmanirbhar Clean
1.97 lakh in around nine years.
 Indian economy has increased in size from Plant Program to boost availability of disease-
being 10th to 5th largest in the world. free, quality planting material for high value
 EPFO membership more than doubling to 27 horticultural crops at an outlay of ` 2,200 crore.
crore, and 7,400 crore digital payments of `126  Global Hub for Millets ‘Shree Anna’: India
lakh crore through UPI in 2022. is the largest producer and second largest
  11.7 crore household toilets under Swachh
exporter of ‘Shree Anna’ in the world. The
Bharat Mission,
  9.6 crore LPG connections under Ujjawala, Indian Institute of Millet Research, Hyderabad
  220 crore Covid vaccination of 102 crore will be supported as the Centre of Excellence
persons, Health, Education and Skilling
 47.8 crore PM Jan Dhan bank accounts,  One hundred and fifty-seven new nursing
  Insurance cover for 44.6 crore persons
colleges will be established.
under PM Suraksha Bima and PM Jeevan
 A Mission to eliminate Sickle Cell Anaemia by
Jyoti Yojana, and
  Cash transfer of Rs. 2.2 lakh crore to 2047 will be launched
over 11.4 crore farmers under PM Kisan  A National Digital Library for children and
Samman Nidhi. adolescents will be set-up.
2023 (35) CURRENT DRISHTI
Priority 2: Reaching the Last Mile Priority 4: Unleashing the Potential
 Recently, the government has launched the As-  Under Mission Karmayogi, Centre, States and
pirational Blocks Programme covering 500 blocks Union Territories are making and implementing
for saturation of essential government services. capacity-building plans for civil servants.
 To improve socio-economic conditions of the  For realizing the vision of “Make AI in India
particularly vulnerable tribal groups (PVTGs), and Make AI work for India”, three centres of
Pradhan Mantri PVTG Development Mission excellence for Artificial Intelligence will be set-
will be launched. up in top educational institutions.
 Bharat Shared Repository of Inscriptions’  National Data Governance Policy will be brought
(BharatSHRI) will be set up in a digital out. This will enable access to anonymized data.
epigraphy museum.  Vivad se Vishwas I – Relief for MSMEs – In
Priority 3: Infrastructure & Investment cases of failure by MSMEs to execute contracts
Capital Investment as driver of growth and jobs during the Covid period, 95 per cent of the
 Capital investment outlay is being increased forfeited amount relating to bid or performance
steeply for the third year in a row by 33 per cent security, will be returned to them.
to Rs. 10 lakh crore, which would be 3.3 per  Vivad se Vishwas II will be introduced for
cent of GDP. This will be almost three times MSMEs for settling Contractual Disputes .
the outlay in 2019-20.  An Entity DigiLocker will be set up for use by
 The direct capital investment by the Centre MSMEs, large business and charitable trusts.
is complemented by the provision made for Priority 5: Green Growth
creation of capital assets through Grants-in-Aid Green Growth
to States. The ‘Effective Capital Expenditure’ Sustainable Ecosystem
of the Centre is budgeted at `13.7 lakh crore, Development
l MISHTI^ to be taken up for
which will be 4.5 per cent of GDP. PM-PRANAM* to be
Mangrove plantation along
launched
 Government has decided to continue the 50-year Will incentivize State/
the coastline
l Amrit Dharohar to be
interest free loan to state governments for one UTs to promote usage
implemented for optimal
of aleternative fertilizers
more year to spur investment in infrastructure usage of wetlands
Other Initiatives
and to incentivize them for complementary 500 New ‘Waste to l Setting up 10,000
policy actions, with a significantly enhanced Wealth’ plants bio-inputs resource
To be established centres-to facilitate
outlay of ` 1.3 lakh crore. under GOBARdhun# farmers to adopt
 A capital outlay of ` 2.40 lakh crore has been scheme for promoting natural farming
circular economy l Promotion of Battery
provided for the Railways. This highest ever energy storage systems
outlay is about 9 times the outlay made in 2013-14. l Promotion of coastal

shipping for energy

 Fifty additional airports, heliports, water efficient transportation
aerodromes and advance landing grounds will be l Funds to be allocated

for replacing old

revived for improving regional air connectivity. polluting vehicles

 Like the RIDF, an Urban Infrastructure

Development Fund (UIDF) will be established Priority 6: Youth Power
through use of priority sector lending shortfall.  Pradhan Mantri Kaushal Vikas Yojana 4.0 will
  This will be managed by the National be launched to skill lakhs of youth within the
Housing Bank, and will be used by public next three years.
agencies to create urban infrastructure in  To provide stipend support to 47 lakh youth
Tier 2 and Tier 3 cities. States. RS 10,000 in three years. Direct Benefit Transfer under a
crore per annum will be made available pan-India National Apprenticeship Promotion
for this purpose. Scheme will be rolled out.

CURRENT DRISHTI (36)2023

 Measures to boost Tourism sector: At least  Indian Rupee performed well compared to
50 destinations to be selected, through challenge other Emerging Market Economies in Apr-
mode, to be developed as a complete package Dec2022.
for domestic and foreign tourists
 States will be encouraged to set-up Unity
Malls: For promotion and sale of ODOP
(One District-One Product), GI and handicraft
products
Priority 7 : Financial Sector

India’s Medium Term Growth Outlook: with

Optimism and Hope 
Economic Survey 2022 -23  Indian economy underwent wide-ranging

 The Economic Survey 2023 was tabled by structural and governance reforms that
Finance Minister Nirmala Sitharaman in strengthened the economy’s fundamentals by
the Parliament on January 31, 2023, kicking off enhancing its overall efficiency during 2014-
the Budget session. 2022.
 The Economic Survey was prepared by the  The period of 2014-2022 also witnessed
Department of Economic Affairs (DEA) balance sheet stress caused by the credit boom
under the guidance of Chief Economic Advisor in the previous years and one-off global shocks,
V Anantha Nageswaran. that adversely impacted the key macroeconomic
State of the Economy 2022-23: Recovery variables such as credit growth, capital
Complete formation, and hence economic growth during
 Expected growth: The Survey has estimated this period.
real GDP growth in 2023-24 at 6.5%. GDP  With improved and healthier balance sheets
forecast for FY24 to be in the range of 6-6.8 %.
of the banking, non-banking and corporate
 Private consumption in H1 is highest since
sectors, a fresh credit cycle has already begun,
FY15 and this has led to a boost to production
evident from the double-digit growth in bank
activity.
 The credit growth to the MSME sector was
credit over the past months.
over 30.6 per cent on average during Jan-Nov  India’s growth outlook seems better than in the
2022. pre-pandemic years, and the Indian economy is
 Retail inflation is back within RBI’s target range prepared to grow at its potential in the medium
in November 2022. term.
2023 (37) CURRENT DRISHTI
Fiscal Developments: Revenue Relish tolerance limit of 6 per cent, the overshoot
 The Gross Tax Revenue registered a YoY growth of inflation above the upper end of the target
of 15.5 per cent from April to November range in India was however one of the lowest in
2022, driven by robust growth in the direct the world.
taxes and Goods and Services Tax (GST).  The government adopted a multi-pronged
 GST has stabilised as a vital revenue source for approach to tame the increase in price levels
central and state governments, with the gross   Phase wise reduction in export duty of
GST collections increasing at 24.8 per cent on petrol and diesel
YoY basis from April to December 2022.   Import duty on major inputs were brought
 Union Government’s emphasis on capital to zero while tax on export of iron ores
expenditure (Capex) has continued despite and concentrates increased from 30 to 50
higher revenue expenditure requirements per cent
during the year. The Centre’s Capex has steadily   Waived customs duty on cotton imports
increased from a long-term average of 1.7 per w.e.f. 14 April 2022, until 30 September
cent of GDP (FY09 to FY20) to 2.5 per cent of 2022
GDP in FY22 PA.  An overall increase in composite Housing Price
 With an emphasis on infrastructure-intensive Indices (HPI) assessment and Housing Price
sectors like roads and highways, railways, and Indices market prices indicates a revival in the
housing and urban affairs, the increase in housing finance sector. A stable to moderate
Capex has large-scale positive implications for increase in HPI also offers confidence to
homeowners and home loan financiers in terms
medium-term growth.
of the retained value of the asset.
Monetary Management and Financial Interme-
Social Infrastructure and Employment: Big
diation : A Good Year
Tent
 The RBI initiated its monetary tightening cycle
 Social Sector witnessed significant increase in
in April 2022 and has since raised the repo rate
government spending.
by 225 bps, leading to moderation of surplus
 Central and State Government’s budgeted
liquidity conditions.
expenditure on health sector touched 2.1% of
 Cleaner balance sheets led to enhanced lending
GDP in FY23 (BE) and 2.2% in FY22 (RE)
by financial institutions.
against 1.6% in FY21.
 The growth in credit offtake is expected to
 Social sector expenditure increases to Rs. 21.3
sustain, and combined with a pick-up in private
lakh crore in FY23 (BE) from Rs. 9.1 lakh crore
capex, will usher in a virtuous investment cycle.
in FY16.
 The Gross Non-Performing Assets (GNPA)
 eShram portal developed for creating a
ratio of SCBs has fallen to a seven-year low of National database of unorganised workers,
5.0. which is verified with Aadhaar. As on 31
 The Capital-to-Risk Weighted Assets Ratio December 2022, a total of over 28.5 crore
(CRAR) remains healthy at 16.0. unorganised workers have been registered on
 The recovery rate for the SCBs through eShram portal.
Insolvency and Bankruptcy (IBC) was highest  JAM (Jan-Dhan, Aadhaar, and Mobile)
in FY22 compared to other channels. trinity, combined with the power of DBT, has
Prices and Inflation: Successful Tight-Rope brought the marginalised sections of society
Walking into the formal financial system, revolutionising
 While India’s retail inflation rate peaked at 7.8 the path of transparent and accountable
per cent in April 2022, above the RBI’s upper governance by empowering the people.
CURRENT DRISHTI (38)2023
 Labour markets have recovered beyond pre-  Sovereign Green Bond Framework (SGrBs)
Covid levels, in both urban and rural areas, with issued in November 2022.
unemployment rates falling from 5.8 per cent in  RBI auctions two tranches of Rs. 4,000 crore
2018-19 to 4.2 per cent in 2020-21. Sovereign Green Bonds (SGrB).
 The year FY22 saw improvement in Gross  National Green Hydrogen Mission to enable
Enrolment Ratios (GER) in schools and India to be energy independent by 2047.
improvement in gender parity. GER in the  Green hydrogen production capacity of at least
primary-enrolment in class I to V as a percentage 5 MMT (Million Metric Tonne) per annum to
of the population in age 6 to 10 years - for girls be developed by 2030. Cumulative reduction
as well as boys have improved in FY22. in fossil fuel imports over Rs. 1 lakh crore and
 Due to several steps taken by the government creation of over 6 lakh jobs by 2030 under the
on health, out-of-pocket expenditure as a National green Hydrogen Mission. Renewable
percentage of total health expenditure declined energy capacity addition of about 125 GW and
from 64.2% in FY14 to 48.2% in FY19. abatement of nearly 50 MMT of annual GHG
 Infant Mortality Rate (IMR), Under Five emissions by 2030.
mortality rate (U5MR) and neonatal Mortality  Solar power capacity installed, a key metric
Rate (NMR) have shown a steady decline. under the National Solar Mission stood at 61.6
 More than 220 crore COVID vaccine doses GW as on October 2022.
administered as on 06 January, 2023.  India becoming a favored destination for
 Nearly 22 crore beneficiaries have been verified renewables; investments in 7 years stand at
under the Ayushman Bharat Scheme as on USD 78.1 billion.
04 January, 2023. Over 1.54 lakh Health and  62.8 lakh individual household toilets and 6.2
Wellness Centres have been operationalized lakh community and public toilets constructed
across the country under Ayushman Bharat. (August 2022) under the National Mission on
Climate Change and Environment: Preparing Sustainable Habitat.
to Face the Future Agriculture and Food Management
 India declared the Net Zero Pledge to achieve  Private investment in agriculture increases to
net zero emissions goal by 2070. 9.3% in 2020-21.
 India achieved its target of 40 per cent installed  MSP for all mandated crops fixed at 1.5 times
electric capacity from non-fossil fuels ahead of of all India weighted average cost of production
2030. since 2018.
 The likely installed capacity from non-fossil  Institutional Credit to the Agricultural Sector
fuels to be more than 500 GW by 2030 resulting continued to grow to 18.6 lakh crore in 2021-22
in decline of average emission rate by around  Foodgrains production in India saw sustained
29% by 2029-30, compared to 2014-15. increase and stood at 315.7 million tonnes in
 India to reduce emissions intensity of its GDP 2021-22.
by 45% by 2030 from 2005 levels.  Free foodgrains to about 81.4 crore beneficiaries
 About 50% cumulative electric power installed under the National Food Security Act for one
capacity to come from non-fossil fuel-based year from January 1, 2023.
energy resources by 2030.  About 11.3 crore farmers were covered under
 A mass movement LIFE– Life style for the Scheme in its April-July 2022-23 payment
Environment launched. cycle.
2023 (39) CURRENT DRISHTI
 Rs 13,681 crores sanctioned for Post-Harvest  India was among the top ten services exporting
Support and Community Farms under the countries in 2021, with its share in world
Agriculture Infrastructure Fund. commercial services exports increasing from 3
 Online, Competitive, Transparent Bidding per cent in 2015 to 4 per cent in 2021.
System with 1.74 crore farmers and 2.39  India’s e-commerce market is projected to grow
lakh traders put in place under the National at 18 per cent annually through 2025.
Agriculture Market (e-NAM) Scheme. External Sector
 Organic Farming being promoted through  Merchandise exports were US$ 332.8 billion for
Farmer Producer Organisations (FPO) under April-December 2022.
the Paramparagat Krishi Vikas Yojana (PKVY).  India diversified its markets and increased
 India stands at the forefront to promote millets its exports to Brazil, South Africa and Saudi
through the International Year of Millets Arabia.
initiative.  To increase its market size and ensure better
penetration, in 2022, CEPA with UAE and
Industry: Steady Recovery
ECTA with Australia come into force.
 Overall Gross Value Added (GVA) by the
 India is the largest recipient of remittances
Industrial Sector (for the first half of FY 22-
in the world receiving US$ 100 bn in
23) rose 3.7 per cent, which is higher than the
2022.  Remittances are the second largest
average growth of 2.8 per cent achieved in the
major source of external financing after
first half of the last decade.
service export
 PMI manufacturing has remained in the
 As of December 2022, Forex Reserves stood
expansion zone for 18 months since July 2021,
at  US$ 563 bn. covering 9.3 months of
and Index of Industrial Production (IIP) grows
imports.
at a healthy pace.
 As of end-November 2022, India is the sixth
 Electronics exports rise nearly threefold,
largest foreign exchange reserves holder in
from US $4.4 billion in FY19 to US $11.6
the world.
Billion in FY22.  The current stock of external debt is well
 India has become the second-largest
shielded by the comfortable level of foreign
mobile phone manufacturer globally, with exchange reserves.
the production of handsets going up from 6
crore units in FY15 to 29 crore units in FY21.
 The Production Linked Incentive (PLI)
schemes introduced across 14 categories, with
an estimated capex of Rs. 4 lakh crore over the
next five years, to plug India into global supply
chains. Investment of Rs. 47,500 crores has
been seen under the PLI schemes in the FY22,
which is 106% of the designated target for the
year. Production/sales worth Rs. 3.85 lakh crore
and employment generation of 3.0 lakh have
been recorded due to PLI schemes.
Services: Source of Strength
 The services sector is expected to grow at 9.1%
in FY23, as against 8.4% (YoY) in FY22.
CURRENT DRISHTI (40)2023
Physical and Digital Infrastructure  Near doubling of capacity of major ports in 8
Gover nment’s Vision for Infrastr ucture years.
Development  Inland Vessels Act 2021 replaced 100-year-old
 National Infrastructure Pipeline Act to ensure hassle free movement of Vessels
  89,151 projects costing Rs. 141.4 lakh crore promoting Inland Water Transport.
under different stages of implementation India’s Digital Public Infrastructure
  1009 projects worth Rs. 5.5 lakh crore  Unified Payment Interface (UPI)

completed   UPI-based transactions grew in value (121

 National Monetisation Pipeline per cent) and volume (115 per cent) terms,
  Rs. 9.0 lakh crore is the estimated between 2019-22, paving the way for its
cumulative investment potential. international adoption.
 Telephone and Radio - For Digital
 GatiShakti
Empowerment
  PM GatiShakti National Master Plan
  Total telephone subscriber base in India
creates comprehensive database for
stands at 117.8 crore (as of Sept,22), with
integrated planning and synchronised
44.3 per cent of subscribers in rural India.
implementation across Ministries/
  More than 98 per cent of the total telephone
Departments.
subscribers are connected wirelessly.
  Aims to improve multimodal connectivity
  The overall tele-density in India stood at
and logistics efficiency while addressing the
84.8 per cent in March 22.
critical gaps for the seamless movement of
  200 per cent increase in rural internet
people and goods.
subscriptions between 2015 and 2021.
Electricity Sector and Renewables
  Prasar Bharati (India’s autonomous public
 As on 30 September 2022, the government has
service broadcaster) - broadcasts in 23
sanctioned the entire target capacity of 40 GW
languages, 179 dialects from 479 stations.
for the development of 59 Solar Parks in 16
Reaches 92 per cent of the area and 99.1
states.
per cent of the total population.
Making Indian Logistics Globally Competitive  Digital Public Goods
 Rapid increase in National Highways (NHs) /   Achieved low-cost accessibility since the
Roads Construction with 10457 km NHs/roads launch of Aadhaar in 2009
constructed in FY22 compared to 6061 km in   Under the government schemes,
FY16. MyScheme, TrEDS, GEM, e-NAM,
 Budget expenditure increased from Rs. 1.4 lakh UMANG has transformed market place
crore in FY20 to Rs. 2.4 lakh crore in FY23 and has enabled citizens to access services
giving renewed push to Capital expenditure. across sectors
 2359 Kisan rails transported approximately 7.91   National AI portal has published 1520
lakh tonnes of perishables, as of October 2022. articles, 262 videos, and 120 government
 More than one crore air passengers availed the initiatives and is being viewed as a tool
benefit of the UDAN scheme since its inception for overcoming the language barrier e.g.
in 2016. ‘Bhashini’.
2023 (41) CURRENT DRISHTI