Economic Survey 2024-25: Growth, Wages, and Markets

Government schemes boosted household incomes, reduced inequality, and increased spending. Rural-urban consumption gap narrowed, benefiting lower-income groups through subsidies and welfare programs.

- Ruchira Talapatra

The Economic Survey 2024-25, presented in Parliament by Finance Minister Nirmala Sitharaman, highlights India's significant strides in economic and social development. The report emphasizes the government's dedication to empowering citizens through substantial investments in education, healthcare, skill development, and social infrastructure.

Enhanced Social Sector Investments

Government expenditure on social services has risen from 23.3% in FY21 to 26.2% in FY25 (BE), marking a compound annual growth rate (CAGR) of 15%. The combined outlay by the Centre and States increased from Rs. 14.8 lakh crore in FY21 to Rs. 25.7 lakh crore in FY25 (BE). Notably, spending on education grew at a CAGR of 12% to reach Rs. 9.2 lakh crore, while health sector expenditure expanded at an 18% CAGR, totaling Rs. 6.1 lakh crore in FY25.

Lifestyle Factors Affecting Productivity

The Survey raises concerns about the economic impact of long working hours and unhealthy lifestyle choices. Data indicates that individuals working over 12 hours a day report lower mental well-being, leading to productivity losses. The report also cautions against excessive junk food consumption, social media addiction, and sedentary lifestyles, recommending improvements in workplace culture and family-based interventions to enhance mental health. Workplace stress, poor management relationships, and lack of job satisfaction contribute to increased absenteeism. With India's growing workforce, addressing these issues is crucial for sustained economic growth. The report references a WHO study estimating that 12 billion workdays are lost annually worldwide due to mental health issues, translating into a $1 trillion financial loss.

Surge in Retail Market Participation