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Updated 19:28 IST, January 31st 2025

Economic Survey 2024-25: 10 Key Highlights Depicts Sustained Growth

With deregulation and infrastructure growth at the core, the country is well-positioned for sustained expansion in the coming years.

Reported by: Business Desk
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Economic Survey 2024-25: 10 Key Highlights
Economic Survey 2024-25: 10 Key Highlights | Image: R Business

Union Minister of Finance and Corporate Affairs, Smt Nirmala Sitharaman presented the Economic Survey 2024-25 in the Parliament today.  India’s economic trajectory remains strong, supported by reforms, investments, and digital transformation. With deregulation and infrastructure growth at the core, the country is well-positioned for sustained expansion in the coming years. 

The 10 major highlights of the survey are as follows;

1. India’s Economic Growth 


India's real GDP is projected to grow by 6.4% in FY25, close to its decadal average. The Growth is expected to be between 6.3% and 6.8% in FY26.
Strong capital expenditure and grassroots-level reforms driving long-term economic expansion.


2. Banking and Financial Sector Strength


Bank credit growth outpaced GDP for two consecutive years, signalling strong financial health.
Gross NPAs hit a 12-year low of 2.6%. Stock markets performed well despite global uncertainties, with India’s market cap-to-GDP ratio at 136%.


3. Resilient External Sector


Overall exports grew by 6% YoY (April–December 2024), driven by strong services exports. India ranked 2nd globally in ‘Telecom, Computer & Information Services’ exports. Forex reserves at $640.3 billion, covering nearly 11 months of imports.


4. Inflation and Price Stability


Retail inflation moderated from 5.4% in FY24 to 4.9% in FY25. RBI expects inflation to align with the 4% target by FY26. Climate-resilient farming and enhanced agricultural practices are crucial for price stability.


5. Deregulation and Policy Reforms


Systematic deregulation is key to India's medium-term growth prospects. Ease of Doing Business 2.0 aims to empower businesses and simplify compliance.
States urged to liberalize standards and enhance legal safeguards for economic growth.


6. Infrastructure and Investment Growth


Government capital expenditure grew 38.8% (FY20-FY24), focusing on roads, railways, and industrial corridors. 5G rollout completed across all states by October 2024. Renewable energy capacity rose by 15.8%, with green energy making up 47% of total capacity.


7. Industrial and MSME Sector Expansion


The industrial sector is projected to grow by 6.2% in FY25. 99% of smartphones are now manufactured domestically, reducing import dependence. The government launched the Self-Reliant India Fund (₹50,000 crore) to support MSME growth.


8. Service Sector Driving Growth


The services sector contributes 55.3% of total GVA, with a post-pandemic growth rate of 8.3%. The tourism sector rebounded, contributing 5% of GDP in FY23.
India ranked 7th globally in services exports.


9. Agriculture and Food Security


Agriculture contributes 16% to GDP, with growth driven by horticulture, livestock, and fisheries. The government continues free food grain distribution under PMGKAY. PM-KISAN benefited over 11 crore farmers, ensuring rural financial security.


10. Employment and Skill Development


Unemployment rate declined to 3.2% (FY24) from 6.0% in FY18. Digital economy and renewable energy sectors creating new job opportunities.
PM-Internship Scheme emerging as a key initiative for youth employment.
 

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Published 19:28 IST, January 31st 2025