Economic Survey 2024-25 | Important Points

Economic Survey 2024-25 Highlights

“The global economy grew by 3.3 per cent in 2023. The International Monetary Fund (IMF) projects global growth to average around 3.2 per cent over the next five years, which is modest by historical standards”, says the Economic Survey 2024-25 tabled by Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman

• The Survey highlights that, despite global uncertainty, India has displayed steady economic growth. India’s real GDP growth of 6.4 per cent in FY25 remains close to the decadal average.

• From an aggregate demand perspective, private final consumption expenditure at constant prices is estimated to grow by 7.3 per cent, driven by a rebound in rural demand.

• On the supply side, the real gross value added (GVA) is estimated to grow by 6.4 per cent.
• The agriculture sector is expected to rebound to a growth of 3.8 per cent in FY25.
• The industrial sector is estimated to grow by 6.2 per cent in FY25. Strong growth rates in construction activities and electricity, gas, water supply and other utility services are expected to support industrial expansion.
• Growth in the services sector is expected to remain robust at 7.2 per cent, driven by healthy activity in financial, real estate, professional services, public administration, defence, and other services.
• Keeping in mind the upsides and downsides to growth, the Survey expects the real GDP growth in FY26 to be between 6.3 and 6.8 per cent.
• To realize the aspirations of Viksit Bharat by 2047, it is important that the medium-term growth outlook of India be assessed in the context of emerging global realities of Geo-Economic Fragmentation (GEF), Chinese manufacturing prowess, and global dependency on China for energy transition efforts.

REAL GVA ESTIMATED TO GROW BY 6.4 PER CENT IN FY25

CAPEX GROWS AT 8.2 PER CENT IN JULY – NOVEMBER 2024 AND EXPECTED TO PICK UP FURTHER PACE

RETAIL HEADLINE INFLATION SOFTENED TO 4.9 PER CENT IN APRIL-DECEMBER 2024

INDIA’S CONSUMER PRICE INFLATION TO ALIGN WITH THE TARGET OF AROUND 4 PER CENT IN FY26

OVERALL EXPORTS GROW 6.0 PER CENT (YOY) DURING APRIL-DECEMBER 2024

INDIA’S SERVICES EXPORT GROWTH SURGED TO 12.8 PER CENT DURING APRIL–NOVEMBER FY25, UP FROM 5.7 PER CENT IN FY24

GROSS FDI INFLOWS INCREASE FROM USD 47.2 BILLION IN FIRST EIGHT MONTHS OF FY24 TO USD 55.6 BILLION IN THE SAME PERIOD OF FY25, A YOY GROWTH OF 17.9 PER CENT

FOREX AT USD 640.3 BILLION AS OF END OF DECEMBER 2024, SUFFICIENT TO COVER 10.9 MONTHS OF IMPORTS AND APPROXIMATELY 90 PER CENT OF EXTERNAL DEBT

CAPACITY ADDITION IN SOLAR AND WIND POWER INCREASES 15.8 PER CENT YEAR-ON-YEAR IN DECEMBER 2024

BSE STOCK MARKET CAPITALISATION TO GDP RATIO AT 136 PER CENT AT THE END OF DECEMBER 2024, FAR HIGHER THAN CHINA (65 PER CENT) AND BRAZIL (37 PER CENT)

ECONOMIC SURVEY ADVOCATES DEREGULATION TO ACCELERATE AND SUSTAIN ECONOMIC GROWTH

CONTINUED STEP-UP OF INFRASTRUCTURE INVESTMENT OVER NEXT TWO DECADES NEEDED TO SUSTAIN A HIGH GROWTH

₹50,000 CRORE SELF-RELIANT INDIA FUND LAUNCHED TO PROVIDE EQUITY FUNDING TO MSMES

KHARIF FOODGRAIN PRODUCTION FOR 2024 IS EXPECTED TO REACH 1647.05 LMT, AN INCREASE OF 89.37 LMT OVER PREVIOUS YEAR

KEY DRIVERS OF AGRICULTURAL GROWTH ARE HORTICULTURE, LIVESTOCK & FISHERIES

SOCIAL SERVICES EXPENDITURE REGISTERS AN ANNUAL GROWTH RATE OF 15 PER CENT BETWEEN FY 21 AND FY 25

GOVERNMENT HEALTH EXPENDITURE INCREASES FROM 29.0 PER CENT TO 48.0 PER CENT; SHARE OF OUT OF POCKET EXPENDITURE IN TOTAL HEALTH EXPENDITURE DECLINES FROM 62.6 PER CENT TO 39.4 PER CENT BETWEEN FY15 AND FY22

UNEMPLOYMENT RATE DECLINES TO 3.2 PER CENT IN 2023-24 (JULY-JUNE) FROM 6.0 PER CENT IN 2017-18 (JULY-JUNE)

COLLABORATIVE EFFORT BETWEEN GOVERNMENT, PRIVATE SECTOR, AND ACADEMIA ESSENTIAL TO MINIMISE ADVERSE AI SOCIETAL EFFECTS

What is Economic Survey?

The economic survey is an annual document prepared by the Department of Economic Affairs, the Ministry of Finance under the guidance of the Chief Economic Advisor.

• It is regarded as the official report card of the union government which gives a roadmap for the country’s economy and spells the way forward.
• It provides detailed statistical data covering all aspects of the economy during the financial year.
• It is prepared by the Chief Economic Adviser in the finance ministry.
• It is tabled in Budget Session. Normally, a day before the Union Budget.
• In an election year, the government of the day presents an interim budget leaving the task of framing the Economic Survey to the incoming government. The new government tabled it in July, during a full-fledged Budget Session.
• It’s not binding on the government to table the Economic Survey. However, now it’s a part of the practice. The government is also not bound to follow its recommendations.

Economic Survey vs Budget

The Major difference Between Economic Survey vs Budget are:

Economic Survey	Budget
Economic Survey discusses the outlook and challenges of the economy and recommends reform measures.	A budget is an estimate of income and expenditure for a given financial year. It focuses solely on money matters including fund allocations for developmental projects.
The First Economic Survey was submitted and presented in Lok Sabha in the year 1950-51.	The First Union Budget of India was presented on November 26, 1947. It was presented by RK Shanmukham Chetty. In this budget, the economy was reviewed and no new taxes were imposed.
From 1964, the Economic Survey is presented a day before the Budget	The Union Budget is presented a day after the Economic Survey is presented.

Alse refer :

• Fiscal Policy
• Difference Between Fiscal Policy And Monetary Policy
• Top 50 Science Questions From Previous Year UPSC Prelims