Economic Survey 2025: 5G rollout boosts India’s connectivity.
Economic Survey 2025 LIVE: The Economic Survey projects India’s GDP to grow between 6.3% and 6.8% in the fiscal year 2025-26, reflecting strong economic momentum. The survey highlights key drivers such as robust domestic demand, increased infrastructure investment, and continued expansion in manufacturing and services sectors. Additionally, it notes the positive impact of policy reforms and digital transformation, including the rapid rollout of 5G. Despite global uncertainties, India remains on track for steady economic growth in the upcoming fiscal year.
The Economic Survey for 2025, tabled by Union Finance Minister Nirmala Sitharaman in Parliament on Friday, has garnered considerable attention as it projects a growth range of 6.3%-6.8% for India’s GDP. Despite the global uncertainties and challenging economic conditions, India’s real GDP growth for the financial year 2024-25 is pegged at 6.4% based on the first advance estimates of national income, which remains close to the decadal average. This projection underscores India’s resilience in the face of global economic turbulence, marking a period of steady recovery following the impacts of the pandemic.
The Economic Survey is an important pre-budget document that outlines the performance of various sectors and provides a detailed assessment of the economy. Prepared under the supervision of the Chief Economic Advisor, it offers insights into the economy based on data and analysis compiled by the Economic Division of the Department of Economic Affairs in the Ministry of Finance. The survey helps policymakers, economists, and industry leaders to better understand the challenges and opportunities in the economy as they prepare for the upcoming Union Budget.
The 2025 Economic Survey serves as an essential tool for predicting fiscal outcomes and planning for future economic strategies. It discusses the trajectory of India’s economic recovery, examines fiscal performance, and outlines policy measures that can address economic bottlenecks. It presents India’s current growth rate in the context of the ongoing global economic slowdown and underscores the country’s comparative strength, emphasizing that despite external pressures, India has maintained a growth rate that mirrors its long-term averages.
The survey discusses various sectors driving growth in India, such as services, manufacturing, and agriculture, and highlights the importance of maintaining the momentum in these sectors for sustaining the overall economic growth. Furthermore, the survey also addresses inflationary trends and the steps the government has taken to manage inflation while ensuring that the economic growth remains resilient. The document also acknowledges the challenges posed by high global energy prices, supply chain disruptions, and geopolitical tensions, all of which have created an uncertain global economic environment.
India’s growth prospects are dependent on several key factors, according to the Economic Survey. These include continued government reforms, increased public and private investment, and the strengthening of domestic demand. In addition, there is a particular focus on the digitization of the economy, which is expected to provide significant support to growth. The survey also highlights the importance of addressing inequalities and ensuring equitable growth through policies aimed at enhancing the well-being of marginalized communities.
The government has set ambitious targets for growth in the years ahead, with an emphasis on making India a $5 trillion economy by the year 2025. However, these aspirations are dependent on how effectively the country addresses the challenges laid out in the Economic Survey. Infrastructure development, the promotion of start-ups and innovation, and greater focus on export growth are some of the key enablers for realizing these targets. The importance of fiscal discipline is emphasized as well, ensuring that government spending is in line with the overall macroeconomic stability objectives.
In her address, Finance Minister Nirmala Sitharaman also pointed out that the economic outlook for India remains positive. The government’s continued focus on creating a conducive environment for business, along with a comprehensive policy framework to support investment, has been a contributing factor to the projected growth figures. The country’s large and diverse population, along with a rapidly expanding middle class, is expected to continue to drive consumption, which is one of the key engines of economic growth.
In addition to India’s GDP growth projections, the Economic Survey also provides a comprehensive view of the fiscal health of the country. Fiscal deficit trends, government revenue collections, and public expenditure patterns have been detailed, along with a review of the country’s fiscal consolidation efforts. The document stresses that despite global economic challenges, India’s fiscal discipline has largely remained intact, allowing for higher public investments in infrastructure while maintaining the overall fiscal deficit within manageable limits.
One of the standout features of the Economic Survey is its detailed analysis of inflationary trends and their implications for the broader economy. It recognizes that inflation remains a critical issue, particularly in food and energy sectors, which continue to experience volatility due to supply chain disruptions and international market fluctuations. However, the survey notes that the Reserve Bank of India’s (RBI) monetary policy framework has been instrumental in managing inflation while keeping the economy on a stable growth path.
The Economic Survey also offers a view on India’s external sector, particularly trade and investment, and highlights the need for increased foreign direct investment (FDI) to support the economy’s long-term growth. The government’s “Make in India” initiative and efforts to enhance the ease of doing business are expected to contribute significantly to attracting more FDI. This, in turn, will boost job creation and technological advancements across several industries.
The Budget for 2025-26, which will be presented by Union Finance Minister Nirmala Sitharaman on February 1, is expected to build on the insights provided in the Economic Survey. It will outline the government’s fiscal policies and strategies for the upcoming financial year. Given that Sitharaman will be presenting the Union Budget for the eighth consecutive time, there are high expectations regarding the depth of analysis and the focus on both short-term recovery and long-term structural reforms.
Prime Minister Narendra Modi, in his address ahead of the Budget session, also noted the political stability that has characterized India’s recent growth trajectory. He emphasized that for the first time in a decade, there has been no external attempt to disrupt the parliamentary session, signaling an environment of greater political cohesion. The Budget session, which is set to run until April 4, 2025, is one of the most significant legislative events of the year, attracting attention from both national and international observers. During this period, Parliament will convene for critical discussions and deliberations on the country’s economic policies, and the session will be adjourned for a recess on February 13, reassembling on March 10.
As India moves towards presenting its Budget for the upcoming fiscal year, the Economic Survey will undoubtedly serve as a guide for shaping the fiscal policies and ensuring that the country continues its growth journey despite the uncertain global economic environment. With its strong growth projections, commitment to reform, and emphasis on creating an inclusive economy, India is poised to weather global economic challenges and emerge stronger in the years ahead.