Union Finance Minister Nirmala Sitharaman tabled the Economic Survey document in Parliament on Friday. According to the survey, India's 202-2626 GDP growth is expected in the range of 6.3-6.8 percent.
The survey also anticipates a slowdown in growth to 6.4% in the current fiscal year 2024-25, primarily due to weaker manufacturing output and slower corporate investments.
The survey expects inflation to remain under control while consumption could remain stable. It also expects rural demand to gain traction going forward.
The Economic Survey of 2024-25 has come within a short span of six months from the last one, which was presented in July 2024 after the General Election. Finance Minister Nirmala Sitharaman tabled the Economic Survey document for 2023-2024 in Parliament on Monday, July 22, 2024.
The Economic Survey is a compilation of the Indian economy's performance, government policies, and outlook for the upcoming financial year. It is prepared by the economic division of the Department of Economic Affairs headed by the Chief Economic Advisor (CEA). V. Anantha Nageswaran is the Chief Economic Advisor to the Government of India.
Here are some of the key highlights of the Economic Survey 2025. Let's take a look:
1. Indian economy to remain stable: The survey pointed out that despite global uncertainty, India's real GDP growth of 6.4 percent in FY25 (as per first advance estimates of national income) remains close to the decadal average.
"Keeping in mind the upsides and downsides to growth, real GDP growth in FY26 is expected to be between 6.3 and 6.8 per cent. From an aggregate supply perspective, real gross value added (GVA) is also estimated to grow by 6.4 per cent FY25," the survey said.
2. All sectors contributing to growth: The survey says all sectors are performing well. "The agriculture sector remains strong, consistently operating well above trend levels. The industrial sector has also found its footing above the pre-pandemic trajectory. The robust growth rate in recent years has brought the services sector to its trend levels," said the survey.
3. Inflation gradually coming under control: The survey pointed out that retail headline inflation softened from 5.4 percent in FY24 to 4.9 percent in April –December 2024 due to various government initiatives and monetary policy measures.
However, the government’s proactive policy interventions, including strengthening buffer stocks for essential food items, periodic open market releases and efforts to ease imports during supply shortages, helped stabilise inflation.
"Despite challenges, there are positive signs for inflation management in India. The Reserve Bank of India and the International Monetary Fund (IMF) project that India’s consumer price inflation will gradually align with the target of around 4 per cent in FY26," it said.
(By arrangement with livemint.com)