India’s Economic Outlook: Key Insights from the 2024-25 Economic Survey
On Friday, Finance Minister Nirmala Sitharaman presented the Economic Survey for the fiscal year 2024-25 in both the Lok Sabha and the Rajya Sabha. This presentation is a significant event in the Indian parliamentary calendar, occurring a day before the Union Budget is unveiled. Following the presentation, both Houses of Parliament were adjourned for the day. The Economic Survey serves as a prelude to the Union Budget, offering insights into the government’s economic policies and projections for the upcoming financial year.
Economic Growth Projections
India’s economy is projected to grow at a rate of 6.4% for the fiscal year 2024-25. This estimate falls short of the Reserve Bank of India’s (RBI) revised projection of 6.6%. The latest data indicates that the economy grew by 5.4% in real terms during the July-September quarter of the current financial year, which is significantly lower than the RBI’s earlier estimate of 7%. The April-June quarter also showed disappointing growth figures, prompting the RBI to adjust its forecasts downward.
Despite these challenges, India continues to hold the title of the world’s fastest-growing major economy. The GDP expanded by 8.2% in 2023-24, following growth rates of 7.2% in 2022-23 and 8.7% in 2021-22. This resilience highlights the underlying strength of the Indian economy, even as it faces headwinds. Analysts and policymakers will closely monitor these developments as they assess the economic landscape and formulate strategies to stimulate growth.
The Budget Session of 2025
The Budget Session of Parliament commenced on January 31 and will conclude on April 4. During this session, Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget on February 1 at 11 am in the Lok Sabha. This will mark her eighth Union Budget presentation. The Budget speech is expected to outline the government’s economic policies, revenue and expenditure plans, taxation measures, and other crucial financial announcements.
The Union Budget is a vital document that reflects the government’s priorities and strategies for economic growth. It sets the tone for fiscal policy and provides a roadmap for various sectors of the economy. As the government prepares to unveil its budgetary plans, stakeholders from various sectors are keenly awaiting details that could impact their operations and investments.
Understanding the Economic Survey
The Economic Survey is a comprehensive document prepared by the economic division of the Department of Economic Affairs under the Ministry of Finance. It is compiled under the supervision of the Chief Economic Adviser. The survey provides an in-depth analysis of the country’s economic health over the past year and offers insights into key economic indicators for 2024-25, along with predictions for the next financial year.
The Economic Survey serves as a critical tool for understanding the government’s economic priorities and potential directions for the upcoming Budget. It has been a part of the Union Budget documents since 1950-51, although it was separated from the Budget in the 1960s. Since then, it has been presented a day before the annual Budget, allowing lawmakers and the public to grasp the economic context before the financial proposals are made.
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