Economic Survey Emphasises Artificial Intelligence and Infrastructure Spending to Boost India's Growth

The Economic Survey, presented in Parliament by Finance Minister Nirmala Sitharaman, emphasises artificial intelligence, innovation, and infrastructure spending. Experts note its call for private sector involvement. The 436-page document projects India's economy to grow by 6.3-6.8% in the next fiscal year. This rate is lower than needed for India to become a developed nation, highlighting the need for deregulation and reforms in land and labour sectors.

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Madan Sabnavis, Chief Economist at Bank of Baroda, mentions that the survey predicts growth of 6.3-6.8% for 2025-26. This projection will be considered in the upcoming Budget. He also notes the survey's focus on global economic uncertainties and suggests further reforms to improve business ease. Sabnavis expects consumption and investment to rise in the latter half of FY25, stabilising further in FY26.

Challenges and Reforms

Ranen Banerjee from PwC India points out that the survey outlines more challenges than advantages for the Indian economy. Achieving the projected growth rate may be difficult due to necessary deregulation and grassroots reforms. Banerjee adds that the survey hints at continued fiscal consolidation in the upcoming budget and urges policy support from the Monetary Policy Committee for growth.

Debasish Mishra of Deloitte South Asia highlights the survey's focus on job creation, innovation, and manufacturing. It stresses infrastructure spending with private sector collaboration to achieve the Viksit Bharat target. Mishra also notes the emphasis on adopting artificial intelligence in India's services sector as crucial.

Aditi Nayar from Icra states that the real GDP growth forecast of 6.3-6.8% suggests a nominal growth of about 10% for 2025-26 in the Union Budget. She believes tax revenue assumptions will align with this nominal growth when the Union Budget for FY2026 is presented.

Economic Outlook and Structural Reforms

Ashish Gupta, CEO of FretBox, sees a promising outlook for India's economic future in the Economic Survey 2025. He believes government initiatives to promote business ease will boost entrepreneurship and innovation, leading to job creation and economic growth.

Yuji Kato, CEO of Krisumi Corporation, remarks on India's significant economic progress positioning it as a key player globally. Progressive reforms like digitisation and FDI liberalisation have improved business ease, attracting multinational investments. Kato stresses that deeper structural reforms are needed for India's full potential.

Pradeep Aggarwal from Signature Global Group highlights India's economic resilience as noted in the survey. Government-driven regulatory reforms and infrastructure expansion are set to make real estate pivotal in achieving Viksit Bharat 2047—a developed and inclusive India vision.

The Economic Survey underscores India's need for continued reforms and strategic investments to sustain growth momentum. With a focus on innovation and infrastructure, it aims to position India as a significant player in global markets while addressing domestic challenges through targeted policy measures.