{"id":36630,"date":"2025-02-01T19:50:21","date_gmt":"2025-02-01T14:20:21","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=36630"},"modified":"2025-08-05T14:39:27","modified_gmt":"2025-08-05T09:09:27","slug":"economic-survey-2024-25-highlights","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/01-02-2025\/economic-survey-2024-25-highlights","title":{"rendered":"Economic Survey 2024-25: Highlights\u00a0"},"content":{"rendered":"\n<p><strong>Syllabus: GS 3\/Economy&nbsp;<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>In News<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman presented the Economic Survey 2024-25 in the Parliament.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About Economic Survey<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Economic Survey is a comprehensive review of the country\u2019s current economic state and future outlook.<\/li>\n\n\n\n<li>It is prepared by the <strong>Economic Division of the Department of Economic Affairs <\/strong>under the guidance of the Chief Economic Advisor.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Major Highlights&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>State of the Economy<\/strong>: India&#8217;s real <strong>GDP growth <\/strong>estimated at <strong>6.4% in FY25<\/strong>, aligning with its decadal average.\n<ul class=\"wp-block-list\">\n<li>Global <strong>GDP grew 3.3% in 2023<\/strong>, slightly higher than IMF\u2019s 3.2% forecast for the next five years.<\/li>\n\n\n\n<li><strong>F<\/strong><strong>Y26 GDP<\/strong> growth expected between 6.3% and 6.8%.<\/li>\n\n\n\n<li>Retail inflation<strong> <\/strong>reduced to 4.9% in FY25 (April-Dec).<\/li>\n\n\n\n<li>Capital expenditure (CAPEX) grew 8.2% YoY post-general elections in 2024.<\/li>\n\n\n\n<li>India&#8217;s share in <strong>global services exports is 7th largest.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Monetary and Financial Sector Developments:&nbsp; <\/strong>Bank credit grew steadily; asset quality and profitability improved.\n<ul class=\"wp-block-list\">\n<li><strong>Gross non-performing assets<\/strong> (GNPAs) at a 12-year low (2.6% of gross loans).\n<ul class=\"wp-block-list\">\n<li>\u20b93.6 lakh crore realized from 1,068 insolvency resolutions.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>India\u2019s stock markets<\/strong> outperformed emerging market peers.<\/li>\n\n\n\n<li><strong>Resource mobilization<\/strong> from primary markets reached \u20b911.1 lakh crore in FY25.<\/li>\n\n\n\n<li><strong>Insurance premiums<\/strong> grew by 7.7%, and pension sector subscribers rose 16%.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>External Sector<\/strong>:&nbsp; <strong>Exports grew by 6%<\/strong>, with the services sector up 11.6% (April-Dec FY25).\n<ul class=\"wp-block-list\">\n<li><strong>India ranked 2nd in global telecommunications<\/strong>, computer &amp; information services exports.<\/li>\n\n\n\n<li>FDI inflows increased by 17.9% YoY to USD 55.6 billion in FY25.<\/li>\n\n\n\n<li><strong>Forex reserves<\/strong> stood at USD 640.3 billion, covering 10.9 months of imports.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Prices and Inflation<\/strong>:&nbsp; Global inflation moderated to 5.7% in 2024.\n<ul class=\"wp-block-list\">\n<li>India\u2019s retail inflation reduced to 4.9% in FY25.<\/li>\n\n\n\n<li>RBI and IMF project inflation will align to around 4% by FY26.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Medium-Term Outlook:&nbsp; <\/strong>India aims for 8% growth to achieve \u2018Viksit Bharat\u2019 by 2047.\n<ul class=\"wp-block-list\">\n<li>Focus on deregulation to empower growth and ease of doing business, particularly for SMEs.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Investment and Infrastructure<\/strong>: Government capital expenditure grew by 38.8% from FY20 to FY24.\n<ul class=\"wp-block-list\">\n<li>5853 km of National Highways constructed in FY25 (Apr-Dec).<\/li>\n\n\n\n<li>Renewable energy capacity grew by 15.8% YoY by Dec 2024.<\/li>\n\n\n\n<li>Significant infrastructure projects, including metro expansion and electricity access for rural areas.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Industry : <\/strong>Industrial growth projected at 6.2% in FY25, driven by electricity and construction.\n<ul class=\"wp-block-list\">\n<li>Automobile sales up by 12.5% in FY24.<\/li>\n\n\n\n<li>India ranks<strong> 6th in global patent filings.<\/strong><\/li>\n\n\n\n<li>The MSME sector is growing, with initiatives like the Self-Reliant India Fund.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Services <\/strong>: Services sector contribution to GVA increased to 55.3% in FY25.\n<ul class=\"wp-block-list\">\n<li>Services exports grew by 12.8% in FY25 (Apr-Nov).\n<ul class=\"wp-block-list\">\n<li>Indian Railways and tourism sector show strong growth.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Agriculture and Food Management<\/strong>:\u00a0 Agriculture contributes 16% to GDP in FY24.\n<ul class=\"wp-block-list\">\n<li>Kharif foodgrain production is expected to rise by 89.37 LMT in FY24.\n<ul class=\"wp-block-list\">\n<li>Fisheries and livestock sectors show strong growth.<\/li>\n\n\n\n<li>MSP increases for Arhar and Bajra by 59% and 77%, respectively.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Climate &amp; Environment:<\/strong> India\u2019s non-fossil fuel power generation capacity reached 46.8% of total capacity.\n<ul class=\"wp-block-list\">\n<li>LiFE initiative to drive sustainable living, with potential global savings of USD 440 billion by 2030.<\/li>\n\n\n\n<li>India\u2019s carbon sink increased by 2.29 billion tonnes CO2 equivalent.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Social Sector <\/strong>:&nbsp; Social services expenditure grew at 15% CAGR from FY21 to FY25.\n<ul class=\"wp-block-list\">\n<li>Decline in income inequality, with improvements in rural and urban Gini coefficients.<\/li>\n\n\n\n<li>Government health expenditure up from 29% to 48%, reducing out-of-pocket expenses.<\/li>\n\n\n\n<li>Ayushman Bharat has saved over \u20b91.25 lakh crore.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Employment and Skill Development: <\/strong>Unemployment rate declined to 3.2% in FY24.\n<ul class=\"wp-block-list\">\n<li>Government initiatives supporting women entrepreneurship, including credit and skill development.<\/li>\n\n\n\n<li>Emerging sectors like the digital economy and renewable energy provide job opportunities.<\/li>\n\n\n\n<li>EPFO payroll additions doubled in the last six years.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Labour in the AI Era: <\/strong>AI expected to surpass human performance in key sectors but faces barriers like reliability and infrastructure.\n<ul class=\"wp-block-list\">\n<li>India\u2019s young, tech-savvy population is poised to leverage AI for enhanced productivity.<\/li>\n\n\n\n<li>Collaboration between government, private sector, and academia is crucial to manage AI&#8217;s societal impact.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"d3d2da\" data-has-transparency=\"true\" loading=\"lazy\" decoding=\"async\" width=\"605\" height=\"583\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/02\/Economic-Survey-2024-25-Highlights.png\" alt=\"economic-Survey-2024-25-highlights\" class=\"has-transparency wp-image-36631\" style=\"--dominant-color: #d3d2da; width:395px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/02\/Economic-Survey-2024-25-Highlights.png 605w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/02\/Economic-Survey-2024-25-Highlights-300x289.png 300w\" sizes=\"auto, (max-width: 605px) 100vw, 605px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Issues and Concerns&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Global challenges<\/strong> like trade tensions and rising commodity prices may still affect growth.<\/li>\n\n\n\n<li><strong>Investment growth has slowed,<\/strong> with government and private sector capital expenditure weak, partly due to elections and global uncertainties.\n<ul class=\"wp-block-list\">\n<li>This poses a challenge for economic expansion.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Challenges faced by Micro, Small, and Medium Enterprises (MSMEs), including regulatory burdens that hinder formalization, productivity, and innovation.<\/li>\n\n\n\n<li>Employment has grown, particularly for women in agriculture, but <strong>wages have declined<\/strong>.\n<ul class=\"wp-block-list\">\n<li>Many new jobs are low-skill, which limits overall economic progress.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The <strong>services sector faces challenges<\/strong> from AI and skill gaps, with most workers having lower education levels and limited competencies.\n<ul class=\"wp-block-list\">\n<li>Upskilling is crucial for future growth.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The<strong> textiles sector<\/strong>, a key driver of employment, faces challenges in competitiveness, particularly compared to nations like China and Vietnam.\n<ul class=\"wp-block-list\">\n<li>Simplifying export processes could enhance efficiency.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion and Way Forward&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India is on a steady growth path, while <a href=\"https:\/\/www.nextias.com\/blog\/globalisation-in-india\/\" data-type=\"link\" data-id=\"https:\/\/www.nextias.com\/blog\/globalisation-in-india\/\">globalisation<\/a> is slowing down. This change brings both challenges and new opportunities. To keep growing, India must focus on economic reforms and take advantage of its young workforce.<\/li>\n\n\n\n<li>The Survey emphasizes the need for strategic investments, deregulation, and skill development to unlock India&#8217;s growth potential and achieve its long-term economic goals.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source :PIB<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman presented the Economic Survey 2024-25 in the Parliament.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-36630","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/36630","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=36630"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/36630\/revisions"}],"predecessor-version":[{"id":50402,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/36630\/revisions\/50402"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=36630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=36630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=36630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}