Key Highlights of Economic Survey 2024-25

The Economic Survey 2024-25 presents a comprehensive analysis of India’s economic performance and outlines key policy directions.

Here are the major highlights:

Economic Growth and Outlook

• Real GDP is estimated to grow by 6.4 per cent in FY25 and FY26 is expected to be between 6.3% and 6.8%
• India is expected to sustain a 7-8% GDP growth over the next decade with continued structural reforms.
• Growth has been driven by public capital expenditure, strong private investment, and resilient domestic consumption.
• The manufacturing and services sectors have shown strong recovery post-pandemic.

 Fiscal and Monetary Policy

• Fiscal consolidation remains a priority, with a focus on capital investment over revenue spending.
• Government debt is being managed prudently, and fiscal deficit targets are on track.
• India’s Forex reserves were at a high of $706 billion in September 2024 and stood at $640.3 billion by December 27, 2024, covering 89.9% of external debt.
• The survey pointed out that retail headline inflation softened from 5.4% in FY24 to 4.9% in April –December 2024 due to various government initiatives and monetary policy measures.

 Financial Sector and Banking

• Banking sector remains resilient, with declining non-performing assets (NPAs) and improving credit growth.
• Digital payments and fintech innovations are reshaping financial inclusion.

 Infrastructure and Investment

• Record capital expenditure in infrastructure sectors, particularly in roads, railways, and digital connectivity.
• Initiatives like PM Gati Shakti and National Infrastructure Pipeline (NIP) are driving long-term economic expansion.
• Focus on foreign direct investment (FDI) facilitation and ease of doing business.

 Industry and MSME Growth

• Expansion in manufacturing, MSMEs, and startup ecosystem with a focus on Make in India and Aatmanirbhar Bharat.
• Production-Linked Incentive (PLI) schemes are boosting domestic manufacturing in key sectors like electronics, pharmaceuticals, and renewable energy.
• Increasing role of R&D and innovation-driven industrial policies.

External Trade and Foreign Investment

• Despite global trade disruptions, India has maintained a strong export performance.
• Policies are being aligned to reduce import dependency in key sectors and improve trade competitiveness.
• India’s services sector exports, particularly in IT and business services, continue to be a major growth driver.

 Agriculture and Rural Development

• Push for crop diversification and sustainable farming practices to ensure long-term food security.
• Emphasis on agri-tech adoption, better irrigation coverage, and enhanced credit access for farmers.
• Strengthening rural infrastructure and market linkages to boost productivity and rural incomes.

  Climate and Sustainability

• Expansion of renewable energy, with a target to increase solar, wind, and green hydrogen capacity.
• Energy transition policies focusing on reducing carbon emissions while ensuring energy security.
• Enhanced focus on climate adaptation, urban sustainability, and pollution control measures.

 Employment and Skill Development

• Increasing focus on upskilling and reskilling workforce to align with emerging sectors like AI, digital technology, and green jobs.
• Boosting female labor force participation through supportive policies and workplace reforms.

 Digital Transformation and Governance

• E-governance and digital public infrastructure (UPI, Aadhaar, ONDC) have strengthened financial inclusion and service delivery.
• Expansion of 5G networks, AI, and data-driven policymaking to enhance India’s digital economy.
• Government focus on reducing compliance burdens and enhancing ease of doing business.

POLICY RECOMMENDATIONS

The Economic Survey document outlines several key policy measures and recommendations across different sectors to enhance India’s economic growth and resilience.

Some of the major measures include:

Deregulation and Economic Freedom

• Emphasis on reducing regulatory burdens to foster entrepreneurship and investment.
• Expanding the Jan Vishwas Act to decriminalize business-related laws and facilitate ease of doing business.
• Accelerating deregulation efforts to enhance economic freedom for individuals and enterprises.

 Investment and Infrastructure

• Sustained public sector capital expenditure (Capex) to improve infrastructure, especially in transport, power, and urban development.
• Encouraging private sector participation in infrastructure projects to overcome government budget constraints.

 Industrial Growth and MSME Support

• Policy reforms aimed at reducing compliance costs for Micro, Small, and Medium Enterprises (MSMEs).
• Strengthening R&D and innovation to improve industrial competitiveness.
• Addressing import dependency in critical sectors like coal and capital goods.

 Agriculture and Food Management

• Incentivizing crop diversification and improving input efficiency.
• Enhancing agriculture credit and mechanization.
• Strengthening cooperative societies and food processing industries to enhance value addition.

Climate and Sustainability Measures

• Implementing the National Adaptation Plan (NAP) for climate resilience.
• Promoting renewable energy adoption through schemes like PM-KUSUM and PM Surya Ghar.
• Expanding metro networks and enforcing energy efficiency regulations to reduce carbon footprints

Employment and Skill Development

• Enhancing skill training programs, including reskilling and upskilling initiatives.
• Bridging the education-employment gap by aligning skilling programs with industry needs.
• Labour law reforms to promote women’s participation in the workforce.

Social Sector and Economic Inclusion

• Strengthening healthcare and education reforms to improve human capital development.
• Expanding rural infrastructure and economic opportunities to ensure inclusive growth.

 External Trade and Investment

• Encouraging FDI inflows and easing trade regulations to enhance export competitiveness.
• Strengthening logistics infrastructure to improve trade efficiency.

Climate Finance and Green Transition

• Leveraging global green capital to finance India’s energy transition.
• Promoting circular economy practices and waste management regulations.

Digital Transformation and Governance

• Expanding e-governance initiatives like PAN 2.0 for paperless processes.
• Using digital tools for infrastructure monitoring and judicial infrastructure development.

Overall, the policy measures should focus on boosting investment, fostering entrepreneurship, improving infrastructure, supporting MSMEs, enhancing skill development, promoting sustainability, and ensuring economic deregulation to drive long-term growth.