Important Highlights of Budget 2023-24
UNION BUDGET 2023-24
Union Finance Minister Nirmala Sitaraman
presented the budget 2023-24 on 1st February 2023
in the Parliament. According to Article 112 of the
Indian Constitution, the Union Budget of a year,
also referred to as the annual financial statement,
is a statement of the estimated receipts and
expenditure of the government for that particular
year.
 The government has estimated a nominal GDP
growth rate (i.e., real growth plus inflation) of
10.5% in 2023-24.
 Government has adhered to path of fiscal
prudence as Fiscal deficit target of 6.4%
achieved in the Revised Estimate for FY 2022-
23;
  and Fiscal Deficit in 2023-24 is targeted at
5.9% of GDP.
 The government proposes to spend Rs
45,03,097 crore in 2023-24, which is an increase
of 7.5% over the revised estimate of 2022-23.
 The centre gave a boost to infrastructure
development and earmarked Rs 10 lakh crore
as capital expenditure for financial year 2023-
24.
  This is 33% higher than the Rs 7.5 lakh
crore allocated in the fiscal 2022-23.
 Person with annual Income up to Rs 7 lakh will
not have to pay any tax,
 Also number of slabs in the tax structure
introduced in 2020 has been reduced to five.
CURRENT DRISHTI (30)2023
Total Expenditure
 The government is estimated to spend Rs
45,03,097 crore in 2023-24. This is an increase
of 7.5% over the revised estimate of 2022-23.
 Out of the total expenditure,
  revenue expenditure is estimated to be
Rs 35,02,136 crore (1.2% increase) and
  capital expenditure is estimated to be Rs
10,00,961 crore (37.4% increase).
 The increase in capital expenditure is due to an
increase in capital outlay on transport (including
railways, roads and bridges, and inland water
transport) by Rs 1,28,863 crore (36.1% increase).
 Expenditure on total capital outlay is estimated
to be Rs 8,37,127 crore in 2023-24, an increase
of 35% over the revised estimates for 2022-23.
Total Receipt
 Total Receipts: Government receipts (excluding
borrowings) are estimated to be Rs 27,16,281
crore, an increase of 11.7% over the revised
estimates of 2022-23.
 The gap between these receipts and the
expenditure will be plugged by borrowings,
budgeted to be Rs 17,86,816 crore, an increase
of 1.8% over the revised estimate of 2022-23.
Transfer to states:
 The central government will transfer Rs
18,62,874 crore to states and union territories in
2023-24, an increase of 8.9% over the revised
estimates of 2022-23.
 Transfer to states includes devolution of Rs
10,21,448 crore out of the divisible pool of
central taxes, grants worth Rs 6,86,773 crore,
and special loans worth Rs 1.3 lakh crore for
capital expenditure.
 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:
Fiscal deficit
 The difference between total revenue and total
expenditure of the government is termed as
fiscal deficit. It is an indication of the total
borrowings needed by the government.
 Fiscal deficit in 2023-24 is targeted at 5.9% of
GDP, lower than the revised estimate of 6.4%
of GDP in 2022- 23.
Revenue deficit
 The excess of expenses over receipts on revenue
account is called revenue deficit. Revenue deficit
= Revenue Expense – Revenue Receipts .
 Revenue deficit is targeted at 2.9% of GDP in
the budget estimate of 2023-24. It is 4.1% of
GDP in revised estimate of 2022-23.
Effective Revenue Deficit
 Effective Revenue Deficit is the difference
between revenue deficit and grants to states for
creation of capital assets.
 Effective revenue deficit in the budget estimates
of 2023-24 is 1.7 %of GDP while it is 2.9 % of
GDP in revised estimate of 2022-23.
Primary Deficit
 Primary deficit is defined as the difference
between the fiscal deficit and the previous year
interest payments of the government.
 Primary deficit in the budget estimate 2022-23
is 2.3% of GDP while it is 3.0% of GDP in
revised estimate of 2022-23.
Fiscal Responsibility and Budget Management
Targets
 The Fiscal Responsibility and Budget
Management (FRBM) Act, 2003 requires the
central government to progressively reduce
its outstanding debt, revenue deficit and fiscal
deficit, and give three year rolling targets.
 In the Budget speech, the finance minister
reiterated the government’s aim to reduce fiscal
deficit to below 4.5% of GDP by 2025-26.
 Outstanding Liabilities:
 Outstanding liabilities is the accumulation
of borrowings over the years. A higher debt
implies that the government has a higher loan
repayment obligation over the years.
 From 2019-20 onwards, outstanding liabilities
have been increasing, and reached a high of
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:
 Minor changes in the basic custom duties,
cesses and surcharges on some items including
toys, bicycles, automobiles and naphtha.
 Customs duty on camera lens and its inputs/
parts for use in manufacture of camera module
of cellular mobile phone reduced to zero and
concessional duty on lithium-ion cells for
batteries extended for another year.
 The upper limit on turnover for MSMEs to be
eligible for presumptive taxation has been raised
from Rs 2 crore to Rs 3 crore.
 Co-operative societies: The income tax rate
for new co-operative societies engaged in
manufacturing activities has been lowered from
22% to 15% (plus 10% surcharge.
Important Announcement in the budget Speech
 This Budget hopes to build on the foundation
laid in the previous Budget, and the blueprint
drawn for India@100.
Vision for Amrit Kaal
1. Opportunities for Citizens with focus
on the Youth
2. Growth and Job Creation
3. Strong and Stable Macro-Economic
Environment
Achievements
 Per capita income has more than doubled to Rs.
1.97 lakh in around nine years.
 Indian economy has increased in size from
being 10th to 5th largest in the world.
 EPFO membership more than doubling to 27
crore, and 7,400 crore digital payments of `126
lakh crore through UPI in 2022.
  11.7 crore household toilets under Swachh
Bharat Mission,
  9.6 crore LPG connections under Ujjawala,
  220 crore Covid vaccination of 102 crore
persons,
 47.8 crore PM Jan Dhan bank accounts,
  Insurance cover for 44.6 crore persons
under PM Suraksha Bima and PM Jeevan
Jyoti Yojana, and
  Cash transfer of Rs. 2.2 lakh crore to
over 11.4 crore farmers under PM Kisan
Samman Nidhi.
2023 (35)
Priorities of this Budget
1. The Budget adopts the following seven
priorities. They complement each other and act
as the ‘Saptarishi’ guiding us through the Amrit
Kaal.
Saptarishi-7 Priorities
Inclusive Reaching the
Development Last Mile
Infrastructure
Youth Power
and Investment
Amrit
Kaal
Unleashing the Financial
Potential Sector
Green Growth
Priority 1: Inclusive Development
Agriculture and Cooperation
 Digital public infrastructure for agriculture will
be built.
 An Agriculture Accelerator Fund will be
set-up to encourage agri-startups by young
entrepreneurs in rural areas.
 Government will launch an Atmanirbhar Clean
Plant Program to boost availability of disease-
free, quality planting material for high value
horticultural crops at an outlay of ` 2,200 crore.
 Global Hub for Millets ‘Shree Anna’: India
is the largest producer and second largest
exporter of ‘Shree Anna’ in the world. The
Indian Institute of Millet Research, Hyderabad
will be supported as the Centre of Excellence
Health, Education and Skilling
 One hundred and fifty-seven new nursing
colleges will be established.
 A Mission to eliminate Sickle Cell Anaemia by
2047 will be launched
 A National Digital Library for children and
adolescents will be set-up.
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
through use of priority sector lending shortfall.
  This will be managed by the National
Housing Bank, and will be used by public
agencies to create urban infrastructure in
Tier 2 and Tier 3 cities. States. RS 10,000
crore per annum will be made available
for this purpose.
Priority 6: Youth Power
 Pradhan Mantri Kaushal Vikas Yojana 4.0 will
be launched to skill lakhs of youth within the
next three years.
 To provide stipend support to 47 lakh youth
in three years. Direct Benefit Transfer under a
pan-India National Apprenticeship Promotion
Scheme will be rolled out.

CURRENT DRISHTI (36)2023

 Measures to boost Tourism sector: At least
50 destinations to be selected, through challenge
mode, to be developed as a complete package
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
Economic Survey 2022 -23
 The Economic Survey 2023 was tabled by
Finance Minister Nirmala Sitharaman in
the Parliament on January 31, 2023, kicking off
the Budget session.
 The Economic Survey was prepared by the
Department of Economic Affairs (DEA)
under the guidance of Chief Economic Advisor
V Anantha Nageswaran.
State of the Economy 2022-23: Recovery
Complete
 Expected growth: The Survey has estimated
real GDP growth in 2023-24 at 6.5%. GDP
forecast for FY24 to be in the range of 6-6.8 %.
 Private consumption in H1 is highest since
FY15 and this has led to a boost to production
activity.
 The credit growth to the MSME sector was
over 30.6 per cent on average during Jan-Nov
2022.
 Retail inflation is back within RBI’s target range
in November 2022.
2023 (37)
 Indian Rupee performed well compared to
other Emerging Market Economies in Apr-
Dec2022.
India’s Medium Term Growth Outlook: with
Optimism and Hope 
 Indian economy underwent wide-ranging
structural and governance reforms that
strengthened the economy’s fundamentals by
enhancing its overall efficiency during 2014-
2022.
 The period of 2014-2022 also witnessed
balance sheet stress caused by the credit boom
in the previous years and one-off global shocks,
that adversely impacted the key macroeconomic
variables such as credit growth, capital
formation, and hence economic growth during
this period.
 With improved and healthier balance sheets
of the banking, non-banking and corporate
sectors, a fresh credit cycle has already begun,
evident from the double-digit growth in bank
credit over the past months.
 India’s growth outlook seems better than in the
pre-pandemic years, and the Indian economy is
prepared to grow at its potential in the medium
term.
CURRENT DRISHTI
Fiscal Developments: Revenue Relish
 The Gross Tax Revenue registered a YoY growth
of 15.5 per cent from April to November
2022, driven by robust growth in the direct
taxes and Goods and Services Tax (GST).
 GST has stabilised as a vital revenue source for
central and state governments, with the gross
GST collections increasing at 24.8 per cent on
YoY basis from April to December 2022.
 Union Government’s emphasis on capital
expenditure (Capex) has continued despite
higher revenue expenditure requirements
during the year. The Centre’s Capex has steadily
increased from a long-term average of 1.7 per
cent of GDP (FY09 to FY20) to 2.5 per cent of
GDP in FY22 PA.
 With an emphasis on infrastructure-intensive
sectors like roads and highways, railways, and
housing and urban affairs, the increase in
Capex has large-scale positive implications for
medium-term growth.
Monetary Management and Financial Interme-
diation : A Good Year
 The RBI initiated its monetary tightening cycle
in April 2022 and has since raised the repo rate
by 225 bps, leading to moderation of surplus
liquidity conditions.
 Cleaner balance sheets led to enhanced lending
by financial institutions.
 The growth in credit offtake is expected to
sustain, and combined with a pick-up in private
capex, will usher in a virtuous investment cycle.
 The Gross Non-Performing Assets (GNPA)
ratio of SCBs has fallen to a seven-year low of
5.0.
 The Capital-to-Risk Weighted Assets Ratio
(CRAR) remains healthy at 16.0.
 The recovery rate for the SCBs through
Insolvency and Bankruptcy (IBC) was highest
in FY22 compared to other channels.
Prices and Inflation: Successful Tight-Rope
Walking
 While India’s retail inflation rate peaked at 7.8
per cent in April 2022, above the RBI’s upper
CURRENT DRISHTI (38)2023
tolerance limit of 6 per cent, the overshoot
of inflation above the upper end of the target
range in India was however one of the lowest in
the world.
 The government adopted a multi-pronged
approach to tame the increase in price levels
  Phase wise reduction in export duty of
petrol and diesel
  Import duty on major inputs were brought
to zero while tax on export of iron ores
and concentrates increased from 30 to 50
per cent
  Waived customs duty on cotton imports
w.e.f. 14 April 2022, until 30 September
2022
 An overall increase in composite Housing Price
Indices (HPI) assessment and Housing Price
Indices market prices indicates a revival in the
housing finance sector. A stable to moderate
increase in HPI also offers confidence to
homeowners and home loan financiers in terms
of the retained value of the asset.
Social Infrastructure and Employment: Big
Tent
 Social Sector witnessed significant increase in
government spending.
 Central and State Government’s budgeted
expenditure on health sector touched 2.1% of
GDP in FY23 (BE) and 2.2% in FY22 (RE)
against 1.6% in FY21.
 Social sector expenditure increases to Rs. 21.3
lakh crore in FY23 (BE) from Rs. 9.1 lakh crore
in FY16.
 eShram portal developed for creating a
National database of unorganised workers,
which is verified with Aadhaar. As on 31
December 2022, a total of over 28.5 crore
unorganised workers have been registered on
eShram portal.
 JAM (Jan-Dhan, Aadhaar, and Mobile)
trinity, combined with the power of DBT, has
brought the marginalised sections of society
into the formal financial system, revolutionising
the path of transparent and accountable
governance by empowering the people.
 Labour markets have recovered beyond pre-
Covid levels, in both urban and rural areas, with
unemployment rates falling from 5.8 per cent in
2018-19 to 4.2 per cent in 2020-21.
 The year FY22 saw improvement in Gross
Enrolment Ratios (GER) in schools and
improvement in gender parity. GER in the
primary-enrolment in class I to V as a percentage
of the population in age 6 to 10 years - for girls
as well as boys have improved in FY22.
 Due to several steps taken by the government
on health, out-of-pocket expenditure as a
percentage of total health expenditure declined
from 64.2% in FY14 to 48.2% in FY19.
 Infant Mortality Rate (IMR), Under Five
mortality rate (U5MR) and neonatal Mortality
Rate (NMR) have shown a steady decline.
 More than 220 crore COVID vaccine doses
administered as on 06 January, 2023.
 Nearly 22 crore beneficiaries have been verified
under the Ayushman Bharat Scheme as on
04 January, 2023. Over 1.54 lakh Health and
Wellness Centres have been operationalized
across the country under Ayushman Bharat.
Climate Change and Environment: Preparing
to Face the Future
 India declared the Net Zero Pledge to achieve
net zero emissions goal by 2070.
 India achieved its target of 40 per cent installed
electric capacity from non-fossil fuels ahead of
2030.
 The likely installed capacity from non-fossil
fuels to be more than 500 GW by 2030 resulting
in decline of average emission rate by around
29% by 2029-30, compared to 2014-15.
 India to reduce emissions intensity of its GDP
by 45% by 2030 from 2005 levels.
 About 50% cumulative electric power installed
capacity to come from non-fossil fuel-based
energy resources by 2030.
 A mass movement LIFE– Life style for
Environment launched.
2023 (39)
 Sovereign Green Bond Framework (SGrBs)
issued in November 2022.
 RBI auctions two tranches of Rs. 4,000 crore
Sovereign Green Bonds (SGrB).
 National Green Hydrogen Mission to enable
India to be energy independent by 2047.
 Green hydrogen production capacity of at least
5 MMT (Million Metric Tonne) per annum to
be developed by 2030. Cumulative reduction
in fossil fuel imports over Rs. 1 lakh crore and
creation of over 6 lakh jobs by 2030 under the
National green Hydrogen Mission. Renewable
energy capacity addition of about 125 GW and
abatement of nearly 50 MMT of annual GHG
emissions by 2030.
 Solar power capacity installed, a key metric
under the National Solar Mission stood at 61.6
GW as on October 2022.
 India becoming a favored destination for
renewables; investments in 7 years stand at
USD 78.1 billion.
 62.8 lakh individual household toilets and 6.2
lakh community and public toilets constructed
(August 2022) under the National Mission on
Sustainable Habitat.
Agriculture and Food Management
 Private investment in agriculture increases to
9.3% in 2020-21.
 MSP for all mandated crops fixed at 1.5 times
of all India weighted average cost of production
since 2018.
 Institutional Credit to the Agricultural Sector
continued to grow to 18.6 lakh crore in 2021-22
 Foodgrains production in India saw sustained
increase and stood at 315.7 million tonnes in
2021-22.
 Free foodgrains to about 81.4 crore beneficiaries
under the National Food Security Act for one
year from January 1, 2023.
 About 11.3 crore farmers were covered under
the Scheme in its April-July 2022-23 payment
cycle.
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
Gover nment’s Vision for Infrastr ucture
Development
 National Infrastructure Pipeline
  89,151 projects costing Rs. 141.4 lakh crore
under different stages of implementation
  1009 projects worth Rs. 5.5 lakh crore
completed
 National Monetisation Pipeline
  Rs. 9.0 lakh crore is the estimated
cumulative investment potential.
 GatiShakti
  PM GatiShakti National Master Plan
creates comprehensive database for
integrated planning and synchronised
implementation across Ministries/
Departments.
  Aims to improve multimodal connectivity
and logistics efficiency while addressing the
critical gaps for the seamless movement of
people and goods.
Electricity Sector and Renewables
 As on 30 September 2022, the government has
sanctioned the entire target capacity of 40 GW
for the development of 59 Solar Parks in 16
states.
Making Indian Logistics Globally Competitive
 Rapid increase in National Highways (NHs) /
Roads Construction with 10457 km NHs/roads
constructed in FY22 compared to 6061 km in
FY16.
 Budget expenditure increased from Rs. 1.4 lakh
crore in FY20 to Rs. 2.4 lakh crore in FY23
giving renewed push to Capital expenditure.
 2359 Kisan rails transported approximately 7.91
lakh tonnes of perishables, as of October 2022.
 More than one crore air passengers availed the
benefit of the UDAN scheme since its inception
in 2016.
2023 (41)
 Near doubling of capacity of major ports in 8
years.
 Inland Vessels Act 2021 replaced 100-year-old
Act to ensure hassle free movement of Vessels
promoting Inland Water Transport.
India’s Digital Public Infrastructure
 Unified Payment Interface (UPI)
  UPI-based transactions grew in value (121
per cent) and volume (115 per cent) terms,
between 2019-22, paving the way for its
international adoption.
 Telephone and Radio - For Digital
Empowerment
  Total telephone subscriber base in India
stands at 117.8 crore (as of Sept,22), with
44.3 per cent of subscribers in rural India.
  More than 98 per cent of the total telephone
subscribers are connected wirelessly.
  The overall tele-density in India stood at
84.8 per cent in March 22.
  200 per cent increase in rural internet
subscriptions between 2015 and 2021.
  Prasar Bharati (India’s autonomous public
service broadcaster) - broadcasts in 23
languages, 179 dialects from 479 stations.
Reaches 92 per cent of the area and 99.1
per cent of the total population.
 Digital Public Goods
  Achieved low-cost accessibility since the
launch of Aadhaar in 2009
  Under the government schemes,
MyScheme, TrEDS, GEM, e-NAM,
UMANG has transformed market place
and has enabled citizens to access services
across sectors
  National AI portal has published 1520
articles, 262 videos, and 120 government
initiatives and is being viewed as a tool
for overcoming the language barrier e.g.
‘Bhashini’.
CURRENT DRISHTI