During the parliamentary meeting on January 31, 2025, Union Finance Minister Nirmala Sitharaman presented the Economic Survey 2024-25, stating that it was a review of the nation's problems and the current status of the economy over the fiscal year.
The Chief Economic Adviser V. Anantha Nageswaran oversees a team of experts who prepare the Economic Survey, which serves as the foundation for the preparation of the other budget documents. The survey takes into account the outlook for the upcoming fiscal period in addition to reviewing the economy for the current fiscal year.
According to the Economic Survey 2024-25, India's GDP is expected to grow beween 6.3% and 6.8% in the fiscal year 2025–2026 (FY26). One day before the presentation of the Union Budget, on January 31, Finance Minister Nirmala Sitharaman presented the survey to the Parliament.
The Budget Session officially begins today and will run through April 4, 2025. The Lok Sabha has been postponed until February 1, 2025, at 11 AM.
Outlook for the Indian Economy
Regarding the future of the economy, the survey stated that India's chances for growth in FY26 are evenly distributed. According to the report, rising trade and geopolitical uncertainty, as well as anticipated changes in commodity prices, will pose significant growth obstacles.
"Rural demand, supported by a rebound in agricultural production, an expected reduction in food inflation, and a stable macroeconomic environment, provide an upside to near-term growth. Overall, the document stated that India will need to improve its global competitiveness through grassroots structural reforms and deregulation in order to strengthen its medium-term growth potential," the document stated.
India's GDP is likely to be 6.4 percent In FY25
According to the survey, the domestic economy is expected to grow at 6.4% in the fiscal year 2024-25 (FY25), based on preliminary national account estimates. According to the economic report card, agriculture and services drove growth in the first half of the current fiscal year, with rural demand improving as a result of record high Kharif production and favorable agricultural conditions.
The manufacturing sector was under pressure due to low global demand and domestic seasonal conditions. Private consumption remained stable, indicating a steady domestic demand. Fiscal discipline and a strong external balance, aided by a services trade surplus and healthy remittance growth, helped to maintain macroeconomic stability. According to the survey, these factors combined to provide a solid foundation for long-term growth in the face of external uncertainty.
