Economic Survey spotlights realty expansion
Connaught Place in Delhi was covered in dense smog on Thursday afternoon
Economic Survey highlights real-estate growth
By S Jha
New Delhi, July 22: The Economic Survey 2024 has lauded the rea-estate sector for robust growth. The survey detailed the sharp recovery in the rea-estate sector.
Union Minister for Finance Nirmala Sitharaman on Monday tabled the Economic Survey 2024 in both the houses of parliament. The Economic Survey has spotlighted the recovery in the gross capital formation with the help of the savings by the households.
“In 2023, residential real estate sales in India were at their highest since 2013, witnessing a 33 per cent YoY growth, with a total sale of 4.1 lakh units in the top eight cities,” stated the Economic Survey.
It quoted real-estate research firm Proptiger, saying that “new supply witnessed an all-time high, with 5.2 lakh units launched in 2023, as against 4.3 lakh units in 2022”.
“The momentum continued in Q1 of 2024, witnessing record-breaking sales of 1.2 lakh units, clocking a robust 41 per cent YoY growth. New supply has consistently exceeded one lakh units since Q2 of 2022, underscoring persistent demand-supply dynamics in the housing market,” added the Economic Survey.
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The Economic Survey also stated that “Gross Fixed Capital Formation (GFCF) continues to emerge as an important driver of growth as indicated in its rising share of nominal GDP”. Higher GFCF indicates higher investment rates.
“India is in the midst of a private capex upcycle that has been aided by government capital expenditure,” added the Economic Survey. It noted that India has outpaced all the emerging economies in the GFCF.
“As per National Accounts Statistics 2024 released by the Ministry of Statistics and Programme Implementation (MoSPI), GFCF by private non-financial corporations increased by 19.8 per cent in FY23,” added the Economic Curvey.
It also quoted Axis Bank Research, saying that “private investment across a consistent set of over 3,200 listed and unlisted non-financial firms has grown by 19.8 per cent in FY24”.
“Against the global trend of widening fiscal deficit and increasing debt burden, India has remained on the course of fiscal consolidation. The fiscal deficit of the Union Government has been brought down from 6.4 per cent of GDP in FY23 to 5.6 per cent of GDP in FY24, according to provisional actuals (PA) data released by the Office of Controller General of Accounts (CGA),” added the Economic Survey.
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The annual document which is unveiled ahead of the Budget also stated that the “government has followed a path of fiscal consolidation while continuing to protect the vulnerable sections and investing in the productive capacity of the economy”.
“The Government’s thrust on capex has been a critical driver of economic growth amidst an uncertain and challenging global environment. The focus of capex has been broad-based spending in sectors such as road transport and highways, railways, defence services, and telecommunications delivers higher and longer impetuses to growth by addressing logistical bottlenecks and expanding productive capacities,” added the Economic Survey.
It also stated that the “Government continues to disburse grants-in-aid for the creation of capital assets to the states, thereby incentivising them to increase their productive spending”.
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