India's FY25 GDP Growth Poised to Surpass Economic Survey's Forecast, Say Industry Leaders

Industry bodies on Monday expressed optimism that India's GDP growth will exceed the 6.5-7 per cent forecast by the Economic Survey. They hope the upcoming Budget will introduce measures to unlock the country's growth potential. Reacting to the Economic Survey 2023-24, tabled in Parliament, Chandrajit Banerjee, Director General of CII, stated that it is pragmatic and offers a futuristic vision for India to achieve developed economy status by 2047.

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The survey projects India's economic growth at 6.5-7 per cent in FY2024-25, compared to 8.2 per cent in 2023-24. "The Indian economy is on a strong wicket and stable footing, demonstrating resilience in the face of geopolitical challenges," it said. PHD Chamber President Sanjeev Agrawal noted that the Indian economy has consolidated its post-Covid recovery, ensuring economic and financial stability.

Focus on Agriculture and Rural Development

According to CII President Sanjiv Puri, greater attention should be paid to invigorating the agriculture sector to boost rural demand. He emphasised that improving the quality of life in rural areas and focusing on social sectors like healthcare would empower marginalised communities. "The survey is positive about the India growth story, and I am confident that India's GDP growth for FY25 will surpass the forecast given in the Survey and basis certain conditions, it has the potential to be at 8 per cent," Puri said.

Agrawal echoed similar sentiments, stating that the Survey conservatively projects real GDP growth of 6.5-7 per cent but believes growth will be above these estimates as 8 per cent growth is becoming a new normal for India. He suggested that traditional farming practices should receive a major thrust to generate higher value addition, boost farmers' incomes, create food processing and export opportunities, and make the farm sector more productive for urban youth.

Reforms and Policy Environment

The CII President expressed support for the reforms agenda proposed in the Survey for the medium term. He hoped that the forthcoming Budget would implement some measures to unlock India's growth potential. "The GDP growth for FY25, which is imminently achievable, is driven by excellent macro-financial management and a facilitative policy environment," he said.

Ficci President Anish Shah remarked on the mature outlook presented in the Economic Survey. "While a projected growth rate of 6.5-7 per cent for fiscal 2024-25 may appear conservative, we feel that for a country of India's size, this growth is encouraging," Shah said. He added that with many significant reforms such as GST and IBC having matured, it is time to look at the next leap on the reforms trajectory.

Job Creation and Skill Development

The Economic Survey indicates that India needs a tripartite compact between the government, private sector, and academia to enhance job creation and skill development. Assocham Secretary General Deepak Sood described the Survey as a bold document. "The way Survey has emphasised the need for creating 78.5 lakh jobs annually till 2030 signals the government's resolve to leverage new-age technologies like AI," Sood stated.

Reacting to the Economic Survey's recognition of telecommunications as a pivotal driver of India's digital transformation, GX Group CEO Paritosh Prajapati praised the government's decision to allocate 5 per cent of the Universal Services Obligation Fund for telecom R&D. "This substantial investment positions India at the forefront of global telecommunications with potential advancements in 5G and 6G technologies," Prajapati said.

PHD Chamber President Agrawal appreciated the six-pronged growth strategy focusing on private capital formation, public-private partnerships for green transition, MSME support, sustainable agriculture, targeted education and skill policies, and enhancing state capacity for sustained progress. He also highlighted that formalising small enterprises is essential to enable increased access to financial resources through formal channels.

The industry bodies are confident that with excellent macro-financial management and a supportive policy environment, India's economy can achieve more than 7 per cent growth backed by consensus among Centre, states, and private sector on reform agendas. The upcoming Budget is anticipated to play a crucial role in implementing these measures.