Economic Survery of India
India’s Union Economic Survey 2024–25, presented by Finance Minister Nirmala Sitharaman, highlights steady economic performance with a projected real GDP growth of 6.4% for FY25 and robust sectoral expansion led by services. Key themes include strong capital expenditure, record-low NPAs, rising exports, controlled inflation, and focused infrastructure and rural development. With improved financial indicators, growing global trade, digital penetration, and climate initiatives, the survey sets a pathway for India’s medium-term goals including a $5 trillion economy by FY28 and Viksit Bharat by 2047.
1. STATE OF THE ECONOMY
➤ Presented by Finance Minister Nirmala Sitharama.
➤ Prepared by the Economic Division of the Ministry of Finance under the supervision of Chief Economic Adviser.
➤ Real GDP Growth - 6.4% (FY25) – close to decadal average
➤ Real GVA growth (Supply side) – 6.4%
➤ GDP Growth projection (FY26): 6.3% – 6.8%
➤ Global GDP Growth (IMF): 3.3% (2023), 3.2% avg (next 5 years)
➤ Capital Expenditure as % of total expenditure rose continuously (FY21–FY24)
→ 3.2% in 2023–24
➤ Fiscal Deficit: 5.6% of GDP (2023–24 Provisional)
➤ Private Final Consumption Expenditure (Constant Price): ↑ 7.3%
Sector-wise Growth:
→ Agriculture & Allied Sectors: 3.8%
→ Industry & Manufacturing: 6.2%
→ Service Sector: 7.2% (fastest growing)
2. MONETARY AND FINANCIAL SECTOR
➤ GNPAs: 2.6% (12-year low)
➤ Net NPA: 0.6%
➤ CRAR (Capital to Risk Weighted Assets Ratio): 16.7% (Scheduled Commercial Banks)
➤ Repo rate: 6.5% (unchanged)
➤ CRR: 4% (reduced)
3. EXTERNAL SECTOR
➤ Merchandise Export: ↑ 1.6%
➤ Service Export: ↑ 11.6% (India ranks 7th globally)
➤ Total Exports: ↑ 6%
➤ Merchandise Import: ↑ 5.2% → higher trade deficit
➤ Remittances: Highest globally (World Bank)
➤ CAD (Current Account Deficit): 1.2% of GDP
➤ FDI inflows: ↑ 17.9% YoY
➤ India: 6th largest exporter of Textiles and Apparel
➤ Share in Global IT exports: 10.2% (2nd globally)
➤ External Debt to GDP ratio: 19.4%
➤ Forex Reserves: $640.3 billion (4th largest globally)
4. PRICE AND INFLATION
➤ Global Inflation: 5.7% (↓ due to monetary tightening)
➤ Retail Inflation: 4.9%
➤ Food Inflation: 8.4%
➤ Core Inflation: ↓ 0.9% (10-year low)
➤ CPI Projection: 4.7–4.8%
➤ RBI FY Projections: FY25 – 4.8%, FY26 – 4.2%
➤ IMF Projections: FY25 – 4.4%, FY26 – 4.1%
5. MEDIUM TERM OUTLOOK
➤ Target: $5 trillion economy by FY28, $6.3 trillion by FY30
➤ Nominal GDP growth (FY25–30): 10.2% (IMF)
➤ Viksit Bharat 2047 needs sustained 8% annual growth
➤ Real GDP Growth (FY26–30): 6.5% (IMF)
➤ CAD expected to rise to 2.2% of GDP by FY30
➤ Rupee depreciation projected at 0.5% per year
6. INVESTMENT AND INFRASTRUCTURE
➤ Capital Expenditure CAGR: ↑ 38.8% (FY20–FY24)
➤ Railways: 17 new Vande Bharat trains, target Net Zero with 30 GW renewable energy by 2029–30
➤ Highways: 6,215 km NHs under Bharatmala
➤ Civil Aviation: 619 UDAN routes operational
➤ Ports & Waterways:
→ Sagarmala, Vadhavan Mega Port (MH), Chabahar (Iran), Galathea Bay (Nicobar)
→ Harit Nauka: 1000 green vessels (10 yrs)
➤ Energy: Total power capacity: 456.7 GW, of which 209.4 GW (47%) is renewable
→ Key schemes: DDUGJY, IPDS, SAUBHAGYA, RDSS, EV Charging Infra
➤ Telecom: 5G in 779 districts, BharatNet: fiber in 2.14 lakh GPs, MeghRaj: ICT cloud
➤ Rural Infra:
→ Jal Jeevan Mission: 12+ crore families
→ 100% coverage in AP, Goa, Haryana, HP, Gujarat, Punjab, Telangana, Mizoram
→ UTs: A&N, DNH&DD, Puducherry
→ Swachh Bharat (Gramin): 3.64 lakh ODF+ villages
➤ Urban Infra:
→ PMAY (Urban): 1.18 crore houses sanctioned
7. INDUSTRY
➤ Manufacturing projected to grow at 6.2%
➤ India holds 2.8% of global manufacturing (China ~28%)
➤ 2nd largest global producer of cement
➤ 6th largest exporter of Textiles
➤ 1st in Jute Production (2nd is Bangladesh)
➤ Cotton: Largest acreage, 2nd in production, 39th in productivity
➤ Ranks 5th in Technical Textile
➤ Pharmaceuticals: 3rd largest by volume
➤ R&D spending: only 0.64% of GDP
➤ MSME: 2nd largest employer after agriculture
➤ Self-Reliant India Fund: ₹50,000 Crore for MSME
8. SERVICES
➤ Service Sector contributes 55.3% in total GVA
➤ 4.3% share in global service exports (7th worldwide)
➤ India among top 5 in service export growth in FY25
➤ Indian Railways: 4th largest network globally
→ Bharat Gaurav Train: Showcasing India’s heritage
➤ 2nd largest telecom market with 84% teledensity
➤ India offers world’s lowest data rates
➤ Achieved fastest global 5G rollout
➤ Fastest growing aviation market globally
9. AGRICULTURE AND FOOD MANAGEMENT
➤ Agriculture & Allied Activities: 16% of GDP
➤ Supports approx. 46% of population
➤ India produces 11.6% of world’s cereals
➤ Sector is vulnerable to weather; only 55% of net sown area is irrigated
➤ More than 2/3rd of agri land at drought risk
➤ KCC: 7.75 crore active accounts
10. CLIMATE AND ENVIRONMENT
➤ India’s per capita carbon emissions: 1/3rd of global average
➤ 7th most climate vulnerable country in the world
11. SOCIAL SECTOR
➤ Govt. spending on social services grew at 15% CAGR (FY21–FY25)
→ Education: ↑ 12%, Health: ↑ 18%
➤ Urban-Rural monthly spending gap ↓ from 84% (2011–12) to 70% (2023–24)
➤ Inequality declined:
→ Rural Gini: 0.237, Urban Gini: 0.284
➤ Primary Gross Enrollment Ratio: 93%
➤ Health:
→ Out-of-pocket health spending ↓ from 62.6% (FY15) to 39.4% (FY22)
→ Govt. health spending ↑ from 29% to 48%
➤ PMGSY: 99.6% habitations connected
➤ PMAY-G: 2.69 crore homes built
➤ Jal Jeevan Mission: 12.2 crore tap water connections
➤ Amrit Sarovar: 68,000 ponds created
➤ 1.37 lakh SHG women work as Banking Correspondents (BC Sakhis)
12. EMPLOYMENT AND SKILL DEVELOPMENT
➤ 26% of India’s population is aged 10–24 yrs — major demographic advantage
➤ India expected to become 3rd largest economy by 2030 (after USA and China)
➤ Unemployment Rate: 3.2% (↓ from 6% in 2017–18)
➤ LFPR (Labour Force Participation Ratio): 50.4%
➤ WPR (Worker Population Ratio): ~47%
➤ Self-employment share: ~58%
➤ Female LFPR: 41.7% (↑ from 23% in 2017–18)
Sector-wise Employment Distribution:
→ Agriculture: 46.1%
→ Manufacturing: 11.4%
→ Services: 29.7%
→ Construction: 13%
➤ Digital Economy projected to surpass $1 trillion by 2025
➤ Gig Workforce expected to reach 23 crore by 2029–30
➤ ILO estimates that nearly 75 million jobs globally are at risk of automation due to AI.