Economic Survey 2025: India’s Economic Survey for the financial year 2024-2025 is set to be tabled in the Lok Sabha at 12 p.m. and the Rajya Sabha at 2 p.m. today (January 31, 2025). This comprehensive document, to be presented by Finance Minister Nirmala Sitharaman, will provide an in-depth assessment of the nation’s economic performance over the ongoing fiscal year and set the stage for the upcoming .
A Look Back at India’s Economic Growth
At the beginning of 2024, India’s economic trajectory appeared optimistic, with projections of a 7% growth rate. As one of the fastest-growing major economies globally, India was on track to become a $4 trillion economy by the end of the 2024-25 fiscal year. This growth was driven by a combination of factors, including robust consumer spending, a growing services sector, and substantial investment in infrastructure and technology. India’s rapid economic expansion garnered attention worldwide, with expectations that it would become the third-largest economy in the world by 2027.
Economic Performance in FY 2024-25
The Economic Survey of 2024-2025 is expected to present a comprehensive evaluation of how these projections have unfolded throughout the year. Key highlights are anticipated to focus on the sectors that contributed significantly to India’s economic growth, including agriculture, manufacturing, services, and technology. The survey will also highlight government policies, reforms, and initiatives that have played a pivotal role in fostering economic stability and growth, such as the push towards digitalization, financial inclusion, and the promotion of foreign direct investment (FDI).
Projections for FY 2025-26
Looking ahead, the Economic Survey will offer a glimpse into the expectations for FY 2025-26. According to a United Nations report, India’s economy is projected to grow at 6.6% in 2025, continuing to be a key driver of growth in South Asia. This robust performance is largely attributed to private consumption and investment, with both sectors expected to continue contributing strongly to GDP growth. Additionally, the government’s emphasis on infrastructure development and innovation in sectors like AI, fintech, and green energy will further bolster economic resilience.
The Global Context
India’s growth outlook for 2025 comes amid a dynamic global economic landscape, characterized by uncertainties such as inflation, geopolitical tensions, and the post-pandemic recovery. Nevertheless, India’s economy remains relatively insulated from some of these global shocks, driven by its large domestic market and diverse industrial base.
Key Factors Driving Economic Growth
- Private Consumption: As India’s middle class expands, domestic consumption will continue to be a critical pillar of economic growth. The government’s focus on rural development, digital services, and boosting disposable income will support this consumption-driven growth.
- Investment in Infrastructure: Large-scale infrastructure projects, such as highways, smart cities, and renewable energy initiatives, are expected to drive both public and private sector investments, creating jobs and stimulating economic activity.
- Technological Advancements: The Indian government’s efforts to promote digitalization and technological innovation, particularly in sectors like AI, blockchain, and fintech, will provide new opportunities for growth and enhance productivity.
- Financial Sector Reforms: Financial inclusion efforts and reforms in banking and insurance will continue to promote economic resilience, especially in the face of global financial uncertainties.
The Economic Survey 2025 offers a detailed analysis of India’s performance in a year marked by both challenges and triumphs. While the country’s growth trajectory may face some headwinds in the short term, the long-term outlook remains positive, driven by strong domestic consumption, increasing investments, and continued policy reforms. As India seeks to position itself as a global economic powerhouse, the upcoming Union Budget will likely build upon these foundations, aiming to sustain growth while addressing the evolving needs of a diverse economy.