The Economic Survey 2024-25 provides a detailed assessment of India’s economic performance, challenges, and future prospects. The survey, released before the Union Budget, acts as a crucial policy document guiding economic planning and reforms. It presents insights into GDP growth, inflation trends, sectoral performance, fiscal discipline, and structural reforms necessary to sustain long-term economic progress.

Global Economic Survey 2024-25 Scenario

The world economy in 2024 experienced moderate growth, with the International Monetary Fund (IMF) estimating global GDP growth at 3.2% for 2024 and 3.3% for 2025. Key global concerns included rising geopolitical tensions, fluctuating commodity prices, and supply chain disruptions. Despite these challenges, India’s real GDP is estimated to grow at 6.4% in FY25, supported by strong domestic demand and a resilient services sector.

Economic Survey 2024-2025 PDF

India’s Economic Performance

1. GDP Growth and Macroeconomic Stability

• India’s real GDP is expected to grow by 6.4% in FY25, driven by the services sector and strong rural demand.
• Private consumption remained stable, reflecting steady domestic demand.
• Fiscal discipline and strong external balances, supported by a services trade surplus and healthy remittance growth, ensured macroeconomic stability.

Enroll now for UPSC Online Course

2. Sectoral Performance

3. Inflation and Fiscal Measures

• Inflation showed signs of moderation, supported by stable food prices and monetary policies.
• The government’s focus on structural reforms and deregulation aims to enhance India’s global competitiveness and boost medium-term growth.

4. Investment and Employment Trends

• Capital investment witnessed fluctuations due to global economic uncertainties and political transitions.
• Private sector investments remain key, with improvements in corporate earnings and wage growth essential for sustained economic expansion.
• Employment indicators showed growth in rural employment, particularly in agriculture and allied sectors.

Key Highlights of the Economic Survey 2024-25

The Economic Survey 2024-25 paints a picture of steady economic growth despite global uncertainties. With strong domestic demand, fiscal prudence, and digital transformation, India is well-positioned for sustained economic expansion. However, structural reforms and policy measures will be crucial in navigating global uncertainties and boosting long-term growth prospects.

1. GDP Growth: Expected at 6.4% in FY25, with strong rural consumption playing a crucial role.
2. Inflation Management: Food inflation is likely to ease due to better agricultural output and improved supply chain mechanisms.
3. Investment Trends: Government policies aimed at enhancing ease of doing business to boost private investments.
4. Digital & Financial Growth: Expansion of UPI, fintech, and digital lending strengthened financial inclusion.
5. Infrastructure & Sustainability: Increased capital expenditure in infrastructure projects to boost employment and long-term growth.
6. Trade & Exports: India’s trade balance benefited from services exports and strong remittance inflows.
7. Policy Focus: Deregulation and ease of compliance for MSMEs and startups to accelerate entrepreneurship.

Check Out UPSC CSE Books From PW Store

Challenges and Future Outlook

Potential Headwinds

• Geopolitical Uncertainties: Ongoing global conflicts and trade tensions could impact India’s export markets.
• Commodity Price Shocks: Any significant rise in crude oil or essential commodities could impact fiscal discipline.
• Private Sector Investments: Ensuring a smooth transition of capital order books into sustained investments remains a challenge.

Opportunities for Growth

• Structural Reforms: Grassroots-level deregulation and ease of doing business to boost entrepreneurship.
• Digital Transformation: Leveraging AI, blockchain, and fintech for governance and economic growth.
• Infrastructure Investments: Higher government spending on transport, energy, and housing will drive employment and economic activity.

Ready to boost your UPSC 2025 preparation? Join PW’s UPSC online courses today!