Economic Survey 2024-25: India’s GDP Growth Estimated at 6.4% for FY25, 8% Growth Required for VIKSIT BHARAT

India's economic landscape is set for a promising future, as outlined in the Economic Survey 2024-25 released by the Ministry of Finance. The country's real GDP and GVA are expected to ascend by 6.4% in FY25, with projections further estimating growth between 6.3% and 6.8% for FY26. This optimistic forecast is underpinned by key reforms aimed at stimulating medium-term growth potential and enhancing India's competitiveness on the global stage. Amid challenges to globalization, such as geo-economic fragmentation, the focus remains on deregulation and improving the ease of doing business, especially for small and medium-sized enterprises (SMEs).

A noticeable emphasis is placed on infrastructure development, which has witnessed significant public investment. From FY20 to FY24, capital expenditure across key sectors surged by 38.8%, demonstrating the government's commitment to fortifying the foundation of India's economy. The financial sector exhibits robust health, marked by a growth in bank credit that mirrors deposit growth, a reduction in the Gross Non-Performing Assets (GNPA) of commercial banks to a 12-year low, and a vibrant mobilization of funds through equity and debt markets.

Enhancing India's Global Stance

India's external sector showcases resilience, with a notable upswing in exports and Foreign Direct Investment (FDI) inflows, propelled by an impressive performance in the services sector. This has positioned India as the world's second-largest exporter of telecommunications, computer, and information services. The agriculture sector continues to play a pivotal role in the nation's GDP, experiencing significant growth in high-value areas such as horticulture, livestock, and fisheries.

In line with global trends, India is steering towards renewable energy and sustainability. The increase in electricity generation from non-fossil fuel sources, alongside initiatives for environmental conservation and climate change adaptation, underscores this shift. Additionally, social services expenditure has seen an annual growth of 15% from FY21 to FY25, with healthcare expenditure witnessing substantial improvements. Efforts to mitigate out-of-pocket expenses for households further reflect the government's dedication to social welfare.

Focus on Employment and Skill Development

The importance of employment and skill development has not been overlooked, with initiatives aimed at bolstering job creation and enhancing workforce skills. These efforts are particularly relevant in the context of the evolving digital economy and the advent of artificial intelligence, presenting both opportunities and challenges.

The survey articulates the crucial role of deregulation, infrastructure investment, and innovation in propelling India's economic growth. It paints a vision for a developed India by 2047, necessitating an average growth rate of about 8% over the coming decades. The discourse underlines the indispensability of private sector involvement in realizing these ambitious goals.

The government's pledge to sustainable development, social welfare, and leveraging technology for economic progress delineates India's economic path in the years ahead. With a strategic focus on these areas, India is poised to navigate the complexities of the global economy, fostering growth and prosperity for its citizens.