The Economic Survey 2024-25, tabled by Union Finance Minister Nirmala Sitharaman, provides a comprehensive analysis of India’s economic performance, challenges, and projections. Here are some of the key points and highlights:
- Economic Growth: India’s GDP is projected to grow at 6.4% in FY25, (fiscal year )with a forecast of 6.3%-6.8% growth for FY26. This growth aligns with the decadal average but remains subject to global risks like geopolitical tensions.
- Monetary and Financial Sector: The banking sector is stable with reduced non-performing assets (NPAs), while the stock market has performed well. Capital mobilization has increased, with a 5% rise in primary market mobilization. Insurance and pension sectors are also showing positive growth.
- External Sector: India’s exports grew 6% YoY, and the country remains a strong player in global services exports. Foreign Direct Investment (FDI) inflows increased by 17.9%, highlighting global confidence in India’s economic resilience.
- Investment & Infrastructure: Public infrastructure spending surged, with significant growth in sectors like roads, railways, and renewables. India is also making strides in digital expansion and rural electrification.
- Industry and Services: Industrial growth is driven by sectors like electricity and construction, while services, particularly in telecommunications and IT, continue to grow. The agriculture sector, especially high-value sectors like horticulture and livestock, is also expanding.
- Climate & Environment: India is focusing on sustainable development, with a significant share of electricity generation coming from non-fossil fuels. The Life for Environment (LiFE) movement is helping drive global sustainability efforts.
- Social Sector and Employment: Government spending on social services has risen, and income inequality has declined. Unemployment has also decreased, and initiatives to boost women entrepreneurship and skills development are showing progress.
- AI in the Workforce: The Economic Survey highlights AI’s potential to revolutionize various sectors but also stresses the need for a collaborative approach to integrate AI while mitigating its societal impacts.