Economic Survey 2024-25: Key Insights Ahead of the Union Budget
The report provides a comprehensive assessment of India’s economic trajectory, outlining growth trends, sector-wise performance, and key policy recommendations.
With a real GDP growth estimate of 6.4% for FY25 and projections between 6.3% and 6.8% for FY26, the survey highlights India’s resilience amid global challenges. It also underscores expansion in services, agriculture, and manufacturing, coupled with fiscal and monetary stability measures.
India’s Economic Performance & Growth Forecast
- GDP Growth: Estimated at 6.4% in FY25, with strong contributions from services, infrastructure, and manufacturing.
- Banking & Credit: India’s bank credit growth remains strong, with gross NPAs at a 12-year low of 2.6%.
- Forex Reserves: Stand at $640.3 billion, covering 10.9 months of imports.
Sector-Wise Performance & Insights
1. Agriculture & Rural Development
- Agriculture credit disbursement for FY25 reached ₹19.28 lakh crore, with an overall target of ₹27.5 lakh crore.
- Kisan Credit Card (KCC) accounts stand at 7.75 crore, facilitating ₹9.81 lakh crore in loans.
- PM-KISAN scheme has benefited over 11 crore farmers, with 23.61 lakh enrolled in the PM Kisan Maandhan Yojana.
2. Service Sector & Digital Economy
- The service sector now contributes 55.3% to the total GVA, growing at 8.3% from FY23 to FY25.
- India ranks 2nd globally in IT & telecom services exports, strengthening its digital economy.
- Telecom growth: 5G expansion continues, and mobile data usage has surged to 19.3GB per user in FY24.
3. Industrial Growth & Business Reforms
- The industrial sector is projected to grow by 6.2% in FY25, led by manufacturing, electronics, and pharmaceuticals.
- Domestic electronics production surged to ₹9.52 lakh crore, with 99% of smartphones now manufactured locally.
- Automobile domestic sales grew by 12.5%, showing a robust market recovery.
4. Infrastructure, Transport & Connectivity
- Indian Railways saw 8% growth in passenger traffic, with freight revenue growing at 5.2% YoY.
- 5853 km of National Highways were constructed in FY25 (April-December), reflecting continued infrastructure investments.
- Smart warehousing projects and mobile storage units are being introduced to improve logistics and food security.
5. Financial Sector & Inflation Control
- Retail inflation declined from 5.4% in FY24 to 4.9% in FY25, with expectations to reach 4% by FY26.
- Food inflation remains a concern, driven by climate conditions and supply chain disruptions, but government interventions are helping stabilize prices.
6. Education & Skill Development
- India’s school education system serves 24.8 crore students, with internet availability in schools rising from 22.3% in 2019-20 to 53.9% in 2023-24.
- Higher education institutions have grown by 13.8%, reflecting an expanding academic ecosystem.
- Skill development & AI education are being prioritized to prepare the workforce for the future.
7. Sustainability & Green Energy
- Non-fossil fuel energy accounts for 46.8% of total capacity, supporting India’s clean energy transition.
- A ₹50,000 crore Self-Reliant India Fund was launched to boost MSMEs & startups.
What to Expect in the Union Budget 2025?
While the Economic Survey sets the stage for economic policymaking, all eyes are now on the Union Budget 2025, to be presented on February 1, 2025. The budget is expected to focus on:
✅ Fiscal consolidation & economic stability
✅ Infrastructure investments & private sector participation
✅ Agriculture sector growth & rural employment
✅ Financial sector reforms & banking resilience
✅ Digital India & AI-driven economic expansion
The Economic Survey 2024-25 lays a strong foundation for policy measures in Budget 2025, emphasizing a balanced approach between growth, sustainability, and fiscal discipline.
Source: PIB-Press Release
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