Union Finance Minister Nirmala Sitharaman presented the Economic Survey 2025 in Parliament on January 31, 2025. The report provides insights into India’s economic performance, future growth projections, inflation trends, and sectoral developments. Despite global uncertainties, India’s GDP growth for FY26 is expected to remain strong, ranging between 6.3% and 6.8%.
Let’s dive into the key highlights of the Economic Survey 2025 and what it means for India’s economy.
1. India’s Economy to Remain Stable
Despite challenges, India’s real GDP growth for FY25 is projected at 6.4%, close to the country’s decadal average. The survey estimates that GDP growth for FY26 will be in the range of 6.3% to 6.8%. Additionally, Gross Value Added (GVA) is expected to grow by 6.4% in FY25, highlighting steady economic momentum.
2. Strong Performance Across Sectors
The Economic Survey 2025 emphasizes that all key sectors are contributing positively to economic growth:
✅ Agriculture continues to perform above trend levels, ensuring food security.
✅ The industrial sector has recovered above pre-pandemic levels and is showing resilience.
✅ The services sector has achieved its trend growth rate, boosting employment and consumption.
3. Inflation Under Control
Retail inflation softened from 5.4% in FY24 to 4.9% (April – December 2024) due to proactive government measuresand monetary policies.
📉 Key contributors to food inflation include supply chain disruptions and extreme weather.
📊 The Reserve Bank of India (RBI) and the International Monetary Fund (IMF) predict that inflation will align with the target of 4% by FY26.
4. Financial Sector Stability
The banking and financial sector continues to strengthen:
🏦 Gross Non-Performing Assets (GNPA) of commercial banks declined to 2.6% in September 2024 from its peak in FY18.
💳 The credit-GDP gap narrowed from -10.3% (Q1FY23) to -0.3% (Q1FY25), indicating sustainable bank credit growth.
📈 India’s insurance sector expanded, with total premiums rising by 7.7% in FY24, reaching ₹11.2 lakh crore.
👵 The pension sector saw 16% year-on-year growth in subscribers as of September 2024.
What Lies Ahead?
The Economic Survey 2025 suggests rural demand is likely to strengthen, supporting overall consumption stability. With government interventions and a stable financial sector, India remains well-positioned for sustained economic growth.
Stay tuned for further updates on Budget 2025!
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