ECONOMIC SURVEY & Market g 2024-25

The Finance Minister Nirmala Sitharaman tabled the Economic Survey 2024-25 in Parliament, which provides a roadmap for reforms and growth, setting the stage for the Union Budget 2025.

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The survey assesses economic performance, highlights sectoral developments, outlines challenges and provides an economic outlook for the coming year.

The global economy grew by 3.3 per cent in 2023. The International Monetary Fund (IMF) projects global growth to average around 3.2 per cent over the next five years, which is modest by historical standards", says the Economic Survey 2024-25. As per the Survey, the global economy exhibited steady yet uneven growth across regions in 2024. A notable trend was the slowdown in global manufacturing, especially in Europe and parts of Asia, due to supply chain disruptions and weak external demand. In contrast, the services sector performed better, supporting growth in many economies.

Inflationary pressures eased in most economies. However, services inflation has remained persistent, notes the Survey.

The Survey highlights that, despite global uncertainty, India has displayed steady economic growth.

India's real GDP growth of 6.4 per cent in FY25 remains close to the decadal average. From an aggregate demand perspective, private final consumption expenditure at constant prices is estimated to grow by 7.3 per cent, driven by a rebound in rural demand.

On the supply side, the real gross value added (GVA) is estimated to grow by 6.4 per cent. The agriculture sector is expected to rebound to a growth of 3.8 per cent in FY25. The industrial sector is estimated to grow by 6.2 per cent in FY25. Strong growth rates in construction activities and electricity, gas, water supply and other utility services are expected to support industrial expansion. Growth in the services sector is expected to remain robust at 7.2 per cent, driven by healthy activity in financial, real estate, professional services, public administration, defence, and other services.

Keeping in mind the upsides and downsides to growth, the Survey expects the real GDP growth in FY26 to be between 6.3 and 6.8 per cent.