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Economic Survey 2024-25: Key Highlights & Insights

Finance Minister Nirmala Sitharaman presented the Economic Survey 2024-25 in Parliament, outlining India's economic performance, growth trajectory, and future challenges. Check highlights below.
Economic Survey 2024-25: Key Highlights & Insights

The report provides crucial insights into GDP growth, investments, labor reforms, global trade, and technological advancements shaping India's economy.

📊 State of the Economy

🔹 India’s GDP Growth: India’s economy expanded by 5.4% in Q2 of FY25, falling short of the RBI's 7% forecast. The April-June quarter also witnessed slower-than-expected growth.
🔹 IPO Market Growth: India's share in global IPO listings surged to 30% in 2024 (up from 17% in 2023), making it the top contributor to global resource mobilization.
🔹 Stock Market Performance: The Nifty 50 delivered an 8.8% annual return over the last decade, outperforming China’s Shanghai Composite (3.2%) but lagging behind the US NASDAQ (15.3%) and Dow Jones (9.2%).

🏛️ Structural Reforms & Growth Vision

Viksit Bharat Goal: India must sustain 8% GDP growth over the next 10-20 years to achieve its goal of becoming a developed economy by 2047.
Labor Reforms: The survey emphasizes a business-friendly environment with strong worker protections, fostering a "virtuous cycle of job creation."
Rural Demand Outlook: Improved agriculture performance, easing food inflation, and stable macroeconomic conditions are expected to boost rural consumption.

💰 Investments, Trade & Global Position

Remittances Growth: Private transfers, primarily remittances from overseas Indians, grew from $28.1 billion (Q2 FY24) to $31.9 billion (Q2 FY25).
FDI Revival: Foreign Direct Investment (FDI) inflows grew by 17.9% YoY, reaching $55.6 billion in FY25 compared to $47.2 billion in FY24.
Import-Export Dynamics: The value of trade under new import restrictions surged from $170 billion (2014-15) to $1.3 trillion in FY25.

🌎 Global Trade & China's Dominance

🔹 Strategic Trade Competition: The global trade landscape is shifting towards strategic competition, influencing India’s export-import policies.
🔹 China’s Market Influence: China's manufacturing output is expected to surpass the combined share of the next 10 countries, giving it a dominant edge in high-tech and energy transition sectors.
🔹 Critical Minerals & Supply Chain Risks: China controls the processing of key materials like copper, lithium, cobalt, graphite, and rare earths, posing challenges for India's energy security.

🚀 Future Growth Drivers

Infrastructure Boom: India has made significant strides in transport, power, and digital infrastructure, with faster port operations, telecom expansion, and new railway projects.
AI & Digital Innovation: India’s services sector is rapidly adopting AI, driving banking, healthcare, telecom, and retail transformation.
Education & Employment: The Nipun Bharat Initiative aims to improve foundational literacy for all children by Grade 3 by 2026.

📉 Risks & Economic Challenges

⚠️ Retail Market Concerns: A sharp decline in equity markets could affect investor sentiment and spending, as retail participation is at an all-time high.
⚠️ Inflation Trends: Overall inflation stands at 5.2%, but food inflation remains at 8%, driven by volatile commodity prices.
⚠️ Energy & Manufacturing Costs: India faces higher electricity costs compared to Vietnam and Bangladesh, impacting industrial competitiveness.

The Economic Survey 2024-25 underscores India’s strong economic fundamentals, rapid technological adoption, and infrastructure growth but warns of global trade uncertainties, inflationary risks, and manufacturing challenges. With FDI inflows improving and remittance growth remaining strong, the upcoming Union Budget 2025-26 is expected to focus on boosting investments, job creation, and long-term economic stability.

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Download Economic Survey 2024-25 Highlights PDF

Published date : 31 Jan 2025 03:38PM

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