Economic Survey 2025: Key Summary, Highlights and Important Points; Download PDF

On January 31, 2025, Finance Minister Nirmala Sitharaman will present the Economic Survey 2024-25 in Parliament. This will follow an address by President Droupadi Murmu, marking the start of the FY 2025-26 Budget session.

The Economic Survey is an important document that analyzes India’s economic performance over the past year. It also provides key projections and policy suggestions for the future. Traditionally, the Survey is presented one day before the Union Budget, giving a glimpse into the country’s economic direction for the coming year.

At the start of 2024, India’s economy was expected to grow at 7%, making it one of the fastest-growing economies in the world. There were also high hopes that India would become a $4 trillion economy in 2024-25 and rise to the third-largest economy globally by 2027. These predictions fueled optimism about India’s future in the global economy.

For 2025, India’s economy is now expected to grow by 6.6%, driven mainly by strong private consumption and investment. A United Nations report states that South Asia’s economic growth will remain strong, with India playing a key role in this progress. The report praises India’s “strong performance” as a major contributor to the region’s economic growth.

As India continues to show resilience and growth potential, the Economic Survey and the Union Budget will provide important insights into how the government plans to guide the country toward long-term, sustainable growth.

Economic Survey 2025 Summary

The Economic Survey 2024-25 has been released just six months after the previous edition, which was presented in July 2024 following the General Elections. Finance Minister Nirmala Sitharaman introduced the 2023-24 Economic Survey in Parliament on Monday, July 22, 2024. Here is what the Economic Survey presented for the FY25 according to the Press Information Bureau: 

• GDP Growth Forecast: India's economy is projected to expand between 6.3% and 6.8% in FY26, indicating a steady growth trend.
• Current GDP Performance: The country's real GDP for FY25 is expected to grow at 6.4%, aligning closely with the past decade’s average.
• GVA Growth: India's real Gross Value Added (GVA) is anticipated to increase by 6.4% in FY25, reflecting strong economic momentum.
• Infrastructure Investment: Capital expenditure (Capex) rose by 8.2% between July and November 2024 and is projected to accelerate further.
• Inflation Trends: Retail inflation declined to 4.9% between April and December 2024, aided by government policies and price stability.
• Future Inflation Outlook: Consumer price inflation is expected to stabilize around 4% in FY26, aligning with the Reserve Bank of India's target.
• Export Growth: India's total exports registered a 6% year-on-year increase from April to December 2024.
• Rise in Service Exports: The service sector's export growth surged to 12.8% in FY25 (April–November), up significantly from 5.7% in FY24.
• Foreign Investment: Foreign Direct Investment (FDI) inflows rose to $55.6 billion in the first eight months of FY25, up from $47.2 billion in FY24, marking a 17.9% year-on-year growth.
• Forex Reserves: By December 2024, India's foreign exchange reserves reached $640.3 billion, sufficient to cover 10.9 months of imports and nearly 90% of external debt.
• Growth in Renewable Energy: Capacity addition in solar and wind energy rose by 15.8% year-on-year as of December 2024.
• Stock Market Performance: The BSE stock market capitalization-to-GDP ratio climbed to 136% in December 2024, surpassing China (65%) and Brazil (37%).
• Economic Reforms: The Economic Survey underscores the need for deregulation to support and sustain long-term economic growth.
• Long-Term Infrastructure Spending: A continuous push for infrastructure investment over the next 20 years is necessary to maintain rapid economic expansion.
• Support for Small Businesses: The government introduced the ₹50,000 crore Self-Reliant India Fund to provide equity funding for MSMEs.
• Agriculture Sector Growth: The agriculture industry is expected to expand by 3.8% in FY25, maintaining its upward trajectory.
• Kharif Crop Production: The total foodgrain output for 2024 is projected at 1,647.05 lakh metric tons (LMT), reflecting an increase of 89.37 LMT compared to the previous year.
• Key Drivers of Agricultural Growth: Horticulture, livestock, and fisheries are playing a crucial role in the sector's expansion.
• Industrial Sector Growth: The industrial sector is anticipated to grow by 6.2% in FY25, highlighting a solid recovery.
• Social Sector Spending: Government expenditure on social services recorded an annual growth rate of 15% between FY21 and FY25.
• Healthcare Investments: Public health spending increased from 29% to 48%, while out-of-pocket medical expenses for individuals declined from 62.6% to 39.4% between FY15 and FY22.
• Declining Unemployment: The unemployment rate fell to 3.2% in 2023-24, a significant improvement from 6.0% in 2017-18, indicating better job prospects.
• AI Regulation and Ethical Concerns: Collaboration between the government, private sector, and academia is essential to mitigate the potential negative societal impacts of Artificial Intelligence (AI).

Economic Survey 2025 Key Highlights

India's GDP Projected to Grow 6.4% in the FY25

India's real GDP growth is projected to be 6.4% for FY25, close to the decadal average, despite global uncertainties. The Economic Survey 2025 also forecasts GDP growth for FY26 to range between 6.3% and 6.8%.

The Economic Survey mentions: "India displayed steady economic growth. As per the first advance estimates of national accounts, India’s real GDP is estimated to grow by 6.4 per cent in FY25"

India’s Financial Sector in FY25: Growth, Stability, and Emerging Trends

India's monetary and financial sectors have shown strong performance in the first nine months of FY25. Bank credit has grown steadily, aligning with deposit growth, while scheduled commercial banks (SCBs) have improved profitability, evidenced by a decline in gross non-performing assets (GNPAs) and a rise in the capital-to-risk weighted asset ratio (CRAR).

Financial inclusion has advanced significantly, with the RBI’s Financial Inclusion Index rising from 53.9 in 2021 to 64.2 in 2024. Rural Financial Institutions (RFIs) and Development Financial Institutions (DFIs) continue to play key roles in expanding access to finance and supporting infrastructure development.

India’s Inflation Trends in FY25: Retail Inflation Eases, Core Inflation Hits Decade-Low

After a surge in 2022 due to supply chain disruptions and geopolitical tensions, global inflation has decreased, aided by policy measures. In India, retail inflation in FY25 saw a reduction, thanks to government actions and Reserve Bank of India (RBI) policies. Core inflation dropped to its lowest level in ten years, though food inflation remained high due to challenges like supply chain issues and adverse weather.

India’s retail inflation is expected to align with targets as global commodity prices fall, easing both core and food inflation. To ensure long-term stability, improving price monitoring, developing climate-resilient crops, and enhancing post-harvest management will be key. The Consumer Price Index (CPI) inflation in FY25 saw a decline compared to FY24, driven by a 0.9% drop in core inflation. Additionally, fuel price inflation fell, providing relief to household budgets.

Improvement in Capital Expenditure (Capex)

The Economic Survey 2025 reports a positive trend in capital expenditure (capex), with an 8.2% growth between July-November 2024 compared to the previous year.

Concerns Over Geopolitical Tensions

The Economic Survey 2025 raises concerns about geopolitical risks and their potential impact on the global economic outlook.

Decline in Inflation Rates

The Economic Survey 2025 notes a steady decline in inflation rates globally, with major central banks reducing policy rates as inflation approaches target levels.

Economic Survey 2025 Presented in Parliament

The Economic Survey 2025 was officially tabled in Parliament on January 31, providing insights into India’s economic health and projections for the future.

Economic Survey 2025: Complete PDF 

The Economic Survey presented, provides a comprehensive overview of India’s economic performance and projections for the upcoming year. The survey outlines key trends across various sectors, such as agriculture, industry, and services, highlighting the country’s growth trajectory and future challenges.

It also includes projections for GDP growth, inflation, and capital expenditure, offering valuable insights into the government’s economic policies and strategies. For those interested in a detailed analysis, the complete Economic Survey 2025 PDF is now available for download, providing an in-depth look at India’s economic outlook.