North News
New Delhi, January 31
India’s economy is expected to grow at 6.3-6.8 percent while consumer price inflation is expected to align with the target of around 4 percent in FY26, according to the Economic Survey tabled in Parliament on Friday by Finance Minister Nirmala Sitharaman
Key Highlights of the Economic Survey
- India’s GDP is expected to grow between 6.3% & 6.8% in FY26
- Real GDP is estimated at 6.4% in FY25, close to its decadal average.
- Real GVA is estimated to grow by 6.4% in FY25.
- Capital Expenditure (Capex) grows at 8.2% from July-November 2024 and is expected to pick up further pace.
- Retail headline inflation softened to 4.9% in April-December 2024.
- India’s consumer price inflation is expected to align with the target of around 4% in FY26.
- Overall exports grew 6.0% (YoY) during April-December 2024.
- India’s services export growth surged to 12.8% during April-November FY25, up from 5.7% in FY24.
- Gross FDI inflows increased from USD 47.2 billion in the first eight months of FY24 to USD 55.6 billion in the same period of FY25, a YoY growth of 17.9%.
- Forex stands at USD 640.3 billion as of the end of December 2024, sufficient to cover 10.9 months of imports and approximately 90% of external debt.
- Capacity addition in solar and wind power increased 15.8% year-on-year in December 2024.
- BSE stock market capitalization to GDP ratio was at 136% at the end of December 2024, far higher than China (65%) and Brazil (37%).
- The Economic Survey advocates deregulation to accelerate and sustain economic growth.
- A ₹50,000 crore Self-Reliant India Fund was launched to provide equity funding to MSMEs.
- Agriculture is expected to grow at 3.8% in FY25.
- Kharif foodgrain production for 2024 is expected to reach 1647.05 LMT, an increase of 89.37 LMT over the previous year.
- Key drivers of agricultural growth are horticulture, livestock & fisheries.
- The industrial sector is estimated to grow by 6.2% in FY25.
- Social services expenditure registers an annual growth rate of 15% between FY21 and FY25.
- Government health expenditure increased from 29.0% to 48.0%; share of out-of-pocket expenditure in total health expenditure declined from 62.6% to 39.4% between FY15 and FY22.
- Unemployment rate declined to 3.2% in 2023-24 (July-June) from 6.0% in 2017-18 (July-June).
- Collaborative effort between government, private sector, and academia is essential to minimize adverse AI societal effects.
“The global economy grew by 3.3% in 2023. The International Monetary Fund (IMF) projects global growth to average around 3.2% over the next five years, which is modest by historical standards,” says the Economic Survey 2024-25.
