In this Article, we will cover the detailed and comprehensive breakdown of the Economic Survey 2024–25:
OVERVIEW
1. GDP Growth
- Overall FY25: Real GDP growth was 6.5%, driven by strong Q4 growth of 7.4%, signaling resilient recovery post-global slowdown.
- Nominal GDP: 296.6 lakh crore, reflecting an approximate 9.1% nominal growth.
- Per Capita Income: Crossed 2 lakh, indicating moderate improvement in living standards.
2. Savings & Investment Trends
- Gross Domestic Savings: Improved to 30.3% of GDP in FY24 from 29.4% in FY23.
- Gross Fixed Capital Formation (GFCF): Rose to 29.8% of GDP, signaling strong public capex and industrial recovery.
SECTOR-WISE PERFORMANCE
1. Agriculture and Allied Sectors
- Growth: 3.5% (YoY).
- Key Programs:
- PM-KISAN support reaching over 11 crore farmers.
- Record procurement of rice and wheat.
- Increase in irrigated gross cropped area from 49.3% (2016) to 55% (2021).
- PMFBY: 5.5 crore farmers enrolled in 2024.
2. Industry & Manufacturing
- Industrial sector contributed 29.2% to GDP.
- PLI (Production Linked Incentive) scheme expanded to 14 sectors, attracting investment of 3 lakh crore.
- Construction Sector: Growth driven by urban housing (PMAY-Urban), road, and rail infra.
- Make in India and capex cycles boosted engineering goods exports.
3. Services Sector
- Growth: 8.2% – largest contributor to GDP (~54%).
- Sub-sectors:
- Financial, real estate, and professional services: strong post-COVID recovery.
- Travel & Tourism: Crossed pre-COVID levels with over 11 million foreign tourists.
- IT-BPM exports up by 8.4%.
FISCAL PERFORMANCE
- Fiscal Deficit (FY25): Estimated at 5.8%, aiming for 4.5% by FY26.
- Revenue Receipts: Improved due to buoyant tax collections (GST crossed ₹1.6 lakh crore/month regularly).
- Debt-to-GDP: Targeted to decline to 77.1% by FY27.
INFLATION, MONETARY POLICY & PRICES
- Retail Inflation: Averaged 5.2% in FY25, within RBI’s tolerance band.
- Core Inflation: Declined to 4.3%.
- Food Inflation: Spikes in pulses and vegetables, triggering import relaxations.
- RBI’s Repo Rate: Held at 6.5%, with monetary stance “withdrawal of accommodation.”
EXTERNAL SECTOR
- Exports: $437 billion (merchandise), slightly down due to weak global demand.
- Imports: $677 billion – stable; crude oil formed largest share.
- Current Account Deficit (CAD): Narrowed to 1.2% of GDP due to remittance and service export surpluses.
- Foreign Exchange Reserves: Reached $645 billion, providing ~11 months of import cover.
INFRASTRUCTURE AND LOGISTICS
- Capex Allocation (FY25): 10 lakh crore (3.3% of GDP) – highest ever.
- Highway Construction: 11,500 km built in FY25.
- Railways:
- Vande Bharat services expanded to 70 routes.
- Dedicated Freight Corridors operationalized.
- Digital Infra:
- 100+ crore eKYC verifications via Aadhaar.
- Over 12,000 crore UPI transactions/month.
SOCIAL SECTOR
1. Health
- Public health expenditure rose to 2.1% of GDP.
- PM-JAY: Over 6 crore hospitalizations funded since inception.
- Immunization:
- Intensified Mission Indradhanush 5.0 covered 5 crore children.
2. Education
- NEP 2020 implementation:
- 200+ universities adopted multi-disciplinary frameworks.
- Skill India: Over 1.4 crore youth trained in FY25.
3. Women & Child Development
- Poshan Tracker used by 13 lakh Anganwadis to monitor malnutrition.
- Female labor force participation rose to 37.0% (urban) in FY25.
GREEN & SUSTAINABLE DEVELOPMENT
- RE Capacity: Crossed 180 GW (target: 500 GW by 2030).
- Green Hydrogen Mission: Initial 20,000 crore outlay.
- Electric Vehicles: 15 lakh EVs sold in FY25, supported by FAME-II and state incentives.
EMPLOYMENT TRENDS
- Unemployment Rate (PLFS):
- Urban: 6.7%
- Rural: 4.4%
- Gig Economy:
- Estimated 77 lakh workers.
- EPFO Net Additions:
- 1.3 crore new subscribers in FY25, indicating formal job creation.
Banking & Financial Sector
- Banking:
- Gross Non-Performing Assets (GNPAs) of scheduled commercial banks fell to a 12-year low of 2.6% by September 2024 .
- Credit growth outpaced nominal GDP growth for two consecutive years.
- Capital Markets:
- Primary market mobilization from equity and debt reached INR 11.1 trillion, a 5% increase from FY 2023-24 .
- India’s stock market capitalization-to-GDP ratio reached 136% in December 2024
- Insurance & Pensions:
- Total insurance premiums rose by 7.7%, and pension subscriptions grew by 16% year-on-year.
Green Growth & Sustainability
- Renewable Energy:
- Renewable energy capacity grew by 15.8% year-on-year, with renewables now accounting for 47% of India’s total installed capacity .
- Expansion of solar and wind energy projects, along with the Green Hydrogen Mission, underscores India’s commitment to achieving net-zero emissions by 2070.
- Infrastructure:
- Initiatives like the rollout of 5G and rural electrification programs have enhanced digital and energy access.
The National Logistics Policy and the development of multimodal transport networks are expected to lower logistics costs and improve trade efficiency.
GOVERNANCE & REFORMS
- Digital Public Infrastructure (DPI): UPI, DigiLocker, CoWIN praised globally.
- Ease of Doing Business 2.0: Focused on:
- Single-window clearance.
- Decriminalization of business laws.
- Disinvestment: 70,000 crore mobilized, LIC IPO was the largest.
RISKS AND CHALLENGES
- Global headwinds: Trade deceleration, oil price volatility.
- Climate risk: Drought or flood-linked agricultural distress.
- Food price volatility.
- Risk of “middle-income trap” unless productivity, education, and skilling are deepened.
