The Economic Survey for the Financial Year 2024-2025, which provides a thorough analysis of the nation’s financial and economic conditions during the most recent fiscal year, was published by the Central Government.

Before the Union Budget is presented, the Ministry of Finance of the Government of India releases the Economic Survey. The allied Economic Survey 2024-25 is anticipated to be issued the day before, on January 31, 2025, as the nation prepares for the 2025–26 Union Budget, which is scheduled to be announced by Union Finance Minister Nirmala Sitharaman on February 1, 2025.

Given below are the key highlights of the Economic Survey 2024-2025, as reported by The Hindustan Times: —

• India’s GDP is growing at a steady 6.4% annual rate.
• The rate of inflation decreases somewhat from 5.4% to 4.9%.
• Although it varies, the FPI is generally positive.
• The foreign exchange reserves increased.
• steady expansion of the insurance and banking industries.
• The growth of imports is 6%.
• While personal credit expands somewhat, MSME credit grows.
• Gross Non-Performing Assets ratio (% of gross advances) of SCBs decline
• No. of demat accounts rose by 33% to 18.5 Cr at the end of December 2024 YoY
• No. of unique mutual fund investors doubled from 2.9 Cr in FY21
• No. of IPOs increased to 259 in Apr-Dec 2024 from 196 in Apr-Dec 2023
• Moderate growth in merchandise exports during April-December 2024, Surge in merchandise imports reflecting a rebound in domestic consumption.

Union Budget 2025: In-Depth Analysis for Strategic Insights.

The comprehensive overview of the Indian economy provided by the 13-chapter survey covers new issues including artificial intelligence (AI) and climate change in addition to spotlighting significant industries, services, infrastructure, and agriculture.
In colonial India, British authorities employed comparable reports to evaluate trade and revenue collection, which is where the idea of an economic survey originated. The practice was codified after independence to conform to planned economic development and democratic administration. As a direct result of India’s socioeconomic evolution, the economic survey has changed over time to become more data-driven.

The World Trade Uncertainty Index (WTUI) and the Geopolitical Risk Index (GPR) are expected to rise in 2024, indicating increased uncertainty in the global economy. India’s growth is still strong and near its decadal average in spite of these obstacles. Both advanced and emerging economies are expected to rise steadily, according to the poll, with India’s GDP growing as a result of its robust industrial, services, and agricultural sectors. These sectors’ Gross Value Added (GVA) has been steadily increasing, with services accounting for 7.5%, industry for 6.5%, and agriculture for 4%.

Banking Industry
The Gross Non-Performing Assets (GNPA) ratio of Scheduled Commercial Banks (SCBs) decreased from 7.3% in March 2021 to 2.6% in September 2024, indicating a notable recovery in the banking industry in India. Better profitability is shown in the enhanced Return on Assets (RoA). Growth in bank credit has been consistent, and by September 2024, gross bank credit had reached ₹170.5 lakh crore. Strong activity has also been observed in the capital markets, with ₹11.1 lakh crore raised from primary markets between April and December 2024—a 5% rise over the previous year. India’s external sector is still robust, as seen by the robustness of both imports and exports of goods. Due to a recovery in domestic demand, the merchandise trade imbalance increased to USD 211 billion in the first nine months of FY25.

However, exports of non-petroleum and non-gems and jewellery did well. During the same time period, the services trade surplus was worth USD 150 billion.

A decrease in core inflation has caused headline inflation to drop. Extreme weather and supply chain interruptions, however, continue to contribute to food inflation. Food inflation has been managed through administrative methods including subsidized sales and stock limitations on necessities.
With the installation of 900 coaches in FY25 and the operationalization of 68 Vande Bharat trains, India’s infrastructure industry has made great strides. The power industry is increasingly depending on renewable energy sources and has installed 32,961 MW of capacity. Under the Jal Jeevan Mission, 15.3 crore rural families now have access to safe piped drinking water, demonstrating the improvement of rural infrastructure.

The Business Expectations Index has remained above 100, reflecting good sentiment and confidence in the industry sector. Cement and steel production have driven infrastructure growth, while the electronics industry has gained momentum. The services sector, which accounted for 56% of the GVA in FY25, is still expanding. To maintain growth, however, issues like offshore labor and regulatory barriers must be resolved.

Agriculture Sector

With more finance going to small and marginal farmers and more land being microirrigated, agriculture is still a vital industry. The report highlights the necessity of climate adaption strategies and sustainable farming methods. As of November 2024, 46.8% of built power capacity in India came from non-fossil sources, demonstrating progress towards the country’s Nationally Determined Contributions (NDCs).
Spending on social services has gone up as a result of notable advancements in healthcare and education. Thanks to assistance for female entrepreneurs and skill development initiatives, the female labor force participation rate increased to 34% in 2023–2024. While the renewable energy sector employed 1.02 million people in 2023, the gig economy is expected to provide 2.35 crore jobs by 2029–2030.

The report emphasizes how AI is both a crisis and a driver for the Indian labor sector. Although AI offers labor augmentation prospects, hazards must be managed with cautious implementation and strong institutions. To properly scale AI, issues including infrastructure, resource intensity, and dependability must be resolved. In summary, the Economic Survey 2024–25 presents an image of a robust Indian economy that is expected to grow steadily in spite of international unpredictability. India wants to take advantage of the benefits brought about by technology developments while navigating the problems of the future with an emphasis on infrastructure, sustainability, and equitable development.