Economic Survey 2024-2025: Key Highlights [Read PDF]

The Central Government has released the Economic Survey for the Financial Year 2024-2025, giving a detailed report of the financial and economic aspects of the country during the past financial year.

The Economic Survey is released by the Ministry of Finance of the Government of India prior to the presentation of the Union Budget. As the country gears up for the 2025-26 Union Budget touted to be presented by Union Finance Minister Nirmala Sitharaman on 1 February, 2025, the allied Economic Survey 2024-25 is expected to be released the day before – on 31 January, 2025.

Given below are the key highlights of the Economic Survey 2024-2025, as reported by The Hindustan Times: —

• India’s economic growth remains stable at 6.4% GDP growth.
• Inflation eases down marginally to 4.9% from 5.4%.
• FPI fluctuates but remains positive overall.
• Forex Reserves improved.
• Stable Growth of Bank and Insurance Sectors.
• Imports grow by 6%.
• MSME Credit grows while Personal Credits grow moderately.
• Gross Non-Performing Assets ratio (% of gross advances) of SCBs decline
• No. of demat accounts rose by 33% to 18.5 Cr at the end of December 2024 YoY
• No. of unique mutual fund investors doubled from 2.9 Cr in FY21
• No. of IPOs increased to 259 in Apr-Dec 2024 from 196 in Apr-Dec 2023
• Moderate growth in merchandise exports during April-December 2024, Surge in merchandise imports reflecting a rebound in domestic consumption

Union Budget 2025: In-Depth Analysis for Strategic Insights, Click Here

The survey, spanning 13 chapters, provides a comprehensive overview of the Indian economy, focusing on key sectors such as industry, services, agriculture, and infrastructure, while also addressing emerging issues like climate change and artificial intelligence (AI).

The concept of an economic survey has its roots in colonial India, where British administrators used similar reports to assess revenue collection and trade. Post-independence, the practice was formalized to align with democratic governance and planned economic development.

As time passed, the economic survey has evolved to become more data-driven, as a direct reflection of India’s socio-economic transformation.

The global economy faces heightened uncertainties, with the World Trade Uncertainty Index (WTUI) and Geopolitical Risk Index (GPR) rising in 2024. Despite these challenges, India’s growth remains robust, close to its decadal average. The survey projects steady growth across advanced and emerging economies, with India’s GDP growth driven by strong performances in agriculture, industry, and services. The Gross Value Added (GVA) for these sectors has shown consistent growth, with agriculture at 4%, industry at 6.5%, and services at 7.5%.

Union Budget 2025: In-Depth Analysis for Strategic Insights, Click Here

India’s banking sector has shown significant improvement, with the Gross Non-Performing Assets (GNPA) ratio of Scheduled Commercial Banks (SCBs) declining from 7.3% in March 2021 to 2.6% in September 2024. The Return on Assets (RoA) has also improved, reflecting better profitability. Bank credit growth has been steady, with gross bank credit reaching ₹170.5 lakh crore by September 2024. The capital markets have also seen robust activity, with ₹11.1 lakh crore mobilized from primary markets during April-December 2024, a 5% increase from the previous year.

India’s external sector remains strong, with merchandise exports and imports showing resilience. The merchandise trade deficit widened to USD 211 billion in the first nine months of FY25, driven by a rebound in domestic consumption. However, non-petroleum and non-gems & jewellery exports performed well. The services trade surplus stood at USD 150 billion during the same period. Foreign Exchange reserves reached a high of USD 706 billion in September 2024, covering 89.9% of external debt.

Union Budget 2025: In-Depth Analysis for Strategic Insights, Click Here

Headline inflation has softened, driven by a decline in core inflation. However, food inflation remains a concern, influenced by extreme weather events and supply chain disruptions. Administrative measures, such as stock limits on essential commodities and subsidized sales, have been implemented to control food inflation.

India’s infrastructure sector has seen significant progress, with the operationalization of 68 Vande Bharat trains and the addition of 900 coaches in FY25. The power sector has added 32,961 MW of capacity, with a growing reliance on renewable energy. Rural infrastructure has also improved, with 15.3 crore rural households gaining access to safe piped drinking water under the Jal Jeevan Mission.

The industry sector has shown optimism, with the Business Expectations Index remaining above 100, indicating positive sentiment. Cement and steel production have driven infrastructure growth, while the electronics industry has gained momentum. The services sector continues to grow, contributing 56% to the GVA in FY25. However, challenges such as offshore work and regulatory hurdles need to be addressed to sustain growth.

Union Budget 2025: In-Depth Analysis for Strategic Insights, Click Here

Agriculture remains a key sector, with increased credit flow to small and marginal farmers and a rise in area under micro-irrigation. The survey emphasizes the need for sustainable farming practices and climate adaptation measures. India is progressing towards its Nationally Determined Contributions (NDCs), with 46.8% of installed electricity capacity from non-fossil fuels as of November 2024.

Social services expenditure has increased, with significant progress in education and healthcare. The female labor force participation rate has risen to 34% in 2023-24, driven by skill development programs and support for women entrepreneurs. The gig economy is projected to create 2.35 crore jobs by 2029-30, while the renewable energy sector employed 1.02 million people in 2023.

The survey highlights the dual role of AI as both a crisis and a catalyst for India’s labor market. While AI presents opportunities for labor augmentation, careful deployment and robust institutions are needed to mitigate risks. Challenges such as reliability, infrastructure, and resource intensity must be addressed to scale AI effectively.

In conclusion, the Economic Survey 2024-25 paints a picture of a resilient Indian economy, poised for steady growth despite global uncertainties. With a focus on infrastructure, sustainability, and inclusive development, India aims to navigate the challenges of the future while harnessing the opportunities presented by technological advancements.

To Read the full text of the PDF CLICK HERE

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