{"id":44773,"date":"2025-02-01T03:08:57","date_gmt":"2025-01-31T21:38:57","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=44773"},"modified":"2025-10-07T13:24:08","modified_gmt":"2025-10-07T07:54:08","slug":"economic-survey-2025-key-highlights","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/economic-survey-2025-key-highlights\/","title":{"rendered":"Economic Survey 2025 Key Highlights"},"content":{"rendered":"<h2>What\u2019s in Today\u2019s article?<\/h2>\n<ul>\n<li>Economic Survey 2024-25 Latest News<\/li>\n<li>About Economic Survey<\/li>\n<li>Preparation &amp; Presentation<\/li>\n<li>Significance<\/li>\n<li>Key highlights of Economic Survey 2024-25<\/li>\n<li>Economic Survey 2024-25 FAQs<\/li>\n<\/ul>\n<h2>Economic Survey 2024-25 Latest News<\/h2>\n<ul>\n<li>Economic Survey 2024-25 was tabled in Parliament by Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman.<\/li>\n<\/ul>\n<h2>About Economic Survey<\/h2>\n<ul>\n<li>The Economic Survey of India is an annual report released by the Finance Ministry that assesses the country\u2019s economic performance over the past year.<\/li>\n<li>It highlights macroeconomic indicators, economic progress, and potential challenges India may face.<\/li>\n<li>The survey also suggests policy measures to address future economic challenges.<\/li>\n<\/ul>\n<h3>Preparation &amp; Presentation<\/h3>\n<ul>\n<li>Prepared by the <strong>Economic Division<\/strong> of the <strong>Department of Economic Affairs<\/strong>, under the supervision of the <strong>Chief Economic Advisor (CEA)<\/strong>.<\/li>\n<li>Presented <strong>a day before the Union Budget<\/strong> each year.<\/li>\n<li>The <strong>first Economic Survey<\/strong> was released for <strong>1950-51<\/strong> and was presented along with the Budget until <strong>1964<\/strong>.<\/li>\n<\/ul>\n<h3>Significance<\/h3>\n<ul>\n<li>The survey\u2019s recommendations are<strong> not binding<\/strong> on the Budget.<\/li>\n<li>It is the <strong>most authoritative and comprehensive<\/strong> government analysis of the Indian economy.<\/li>\n<li>Provides an <strong>official framework<\/strong> for economic policy discussions and decision-making.<\/li>\n<\/ul>\n<h2>Key highlights of Economic Survey 2024-25<\/h2>\n<ul>\n<li>Here are the key highlights of the <a href=\"https:\/\/vajiramandravi.com\/current-affairs\/economic-survey-2025\/\" target=\"_blank\" rel=\"noopener noreferrer\" target=\"_blank\"><strong>Economic Survey 2025<\/strong><\/a>:<\/li>\n<\/ul>\n<h3>1. State of the Economy: Back on the Fast Track<\/h3>\n<ul>\n<li><strong>GDP Growth Outlook<\/strong>\n<ul>\n<li><strong>Real GDP<\/strong> and <strong>GVA<\/strong> growth estimated at <strong>6.4% in FY25<\/strong>, aligning with the decadal average.<\/li>\n<li><strong>FY26 GDP growth projected<\/strong> between <strong>6.3%-6.8%<\/strong>, considering economic risks and opportunities.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Global &amp; Domestic Challenges<\/strong>\n<ul>\n<li><strong>Global economy grew 3.3% in 2023<\/strong>, IMF projects <strong>3.2% average growth<\/strong> over the next five years.<\/li>\n<li><strong>Geopolitical tensions, conflicts, and trade risks<\/strong> continue to impact global economic stability.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Inflation &amp; Investment<\/strong>\n<ul>\n<li>Retail inflation softened from 5.4% (FY24) to 4.9% (Apr-Dec 2024).<\/li>\n<li>Capital expenditure (CAPEX) rose steadily from FY21-FY24, with an <strong>8.2% <\/strong>YOY growth (Jul-Nov 2024) post-elections.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Trade &amp; Global Competitiveness<\/strong>\n<ul>\n<li><strong>India ranks 7th in global services exports<\/strong>, showcasing sectoral strength.<\/li>\n<li>Non-Petroleum, non-Gems &amp; Jewellery exports grew 9.1% (Apr-Dec 2024), reflecting resilience amid global volatility.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3>2. Monetary &amp; Financial Sector: Stability &amp; Growth<\/h3>\n<ul>\n<li><strong>Banking Sector Performance<\/strong>\n<ul>\n<li>Credit growth steady, aligning with deposit growth.<\/li>\n<li>GNPAs at a 12-year low (2.6%), with improved asset quality and strong capital buffers.<\/li>\n<li>Credit-GDP gap narrowed to (-) 0.3% in <strong>Q1 FY25<\/strong>, indicating sustainable growth.<\/li>\n<li>\u20b93.6 lakh crore recovered under Insolvency and Bankruptcy Code from 1,068 resolutions (Sept 2024).<\/li>\n<\/ul>\n<\/li>\n<li><strong>Stock Markets &amp; Capital Mobilization<\/strong>\n<ul>\n<li>Indian stock markets outperformed emerging peers despite election volatility.<\/li>\n<li>Primary market mobilization at \u20b911.1 lakh crore (Apr-Dec 2024), a 5% increase from FY24.<\/li>\n<li>BSE market cap to GDP at 136%, surpassing China (65%) &amp; Brazil (37%).<\/li>\n<\/ul>\n<\/li>\n<li><strong>Insurance &amp; Pension Growth<\/strong>\n<ul>\n<li>Insurance premiums grew 7.7% (FY24), reaching \u20b911.2 lakh crore.<\/li>\n<li>Pension subscribers increased 16% YoY (Sept 2024).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3>3. External Sector: Resilient &amp; Growing<\/h3>\n<ul>\n<li>Exports grew 6% YoY (FY25); services exports rose 11.6%.<\/li>\n<li>India ranks 2nd globally in \u2018Telecommunications, Computer &amp; Information Services\u2019 exports (10.2% market share).<\/li>\n<li>Current Account Deficit (CAD) at 1.2% of GDP (Q2 FY25), supported by rising net services and private transfers.<\/li>\n<li><strong>FDI inflows<\/strong> up 17.9% YoY, reaching USD 55.6 billion (Apr-Nov FY25).<\/li>\n<li><strong>FOREX reserves<\/strong> at USD 640.3 billion (Dec 2024), covering 10.9 months of imports.<\/li>\n<li>External debt stable, with a debt-to-GDP ratio of 19.4% (Sept 2024).<\/li>\n<\/ul>\n<h3>4. Prices &amp; Inflation: Moderating Trends<\/h3>\n<ul>\n<li>Global inflation declined from 8.7% (2022) to 5.7% (2024) (IMF).<\/li>\n<li>India\u2019s retail inflation fell from 5.4% (FY24) to 4.9% (FY25, Apr-Dec 2024).<\/li>\n<li>RBI &amp; IMF project inflation to align with 4% target by FY26.<\/li>\n<li>Climate-resilient crops &amp; better farming practices key for long-term price stability.<\/li>\n<\/ul>\n<h3>5. Medium-Term Outlook: Growth Through Deregulation<\/h3>\n<ul>\n<li><strong>Geo-Economic Fragmentation<\/strong> (GEF) replacing globalization, driving economic realignments.<\/li>\n<li>India needs ~8% annual GDP growth to achieve Viksit Bharat 2047 vision.<\/li>\n<li>Global challenges include GEF, China\u2019s manufacturing dominance, and energy transition dependencies.<\/li>\n<li>Systematic deregulation key to boosting domestic growth and economic freedom.<\/li>\n<li>Ease of Doing Business 2.0 &amp; SME sector (Mittelstand) crucial for sustained growth.<\/li>\n<li>States must liberalize regulations, set legal safeguards, and adopt risk-based policies.<\/li>\n<\/ul>\n<h3>6. Investment &amp; Infrastructure: Sustaining Growth<\/h3>\n<ul>\n<li><strong>Public infrastructure<\/strong> spending surged, with 38.8% capex growth (FY20-FY24).<\/li>\n<li><strong>Railway<\/strong>s: 2031 km commissioned; 17 new Vande Bharat trains added.<\/li>\n<li><strong>Roads:<\/strong> 5853 km of National Highways built in FY25 (Apr-Dec).<\/li>\n<li><strong>Industrial Growth<\/strong>: 383 plots (3788 acres) allocated under the National Industrial Corridor.<\/li>\n<li><strong>Ports<\/strong>: Container turnaround time reduced from 48.1 to 30.4 hours.<\/li>\n<li><strong>Renewables<\/strong>: 15.8% YoY growth; renewables now 47% of installed capacity.<\/li>\n<li><strong>Rural Electrification<\/strong>: 18,374 villages, 2.9 crore households electrified.<\/li>\n<li><strong>Digital Expansion<\/strong>: 5G rolled out nationwide; 4G in 10,700 remote villages.<\/li>\n<li><strong>Water &amp; Sanitation<\/strong>: 12 crore families got piped water; 3.64 lakh villages ODF Plus.<\/li>\n<li><strong>Urban Housing<\/strong>: 89 lakh houses completed under PMAY.<\/li>\n<li><strong>Mass Transit<\/strong>: Metro &amp; rapid rail in 29 cities, covering 1,000+ km.<\/li>\n<li><strong>Real Estate<\/strong>: RERA ensured transparency; 1.38 lakh projects registered.<\/li>\n<li><strong>Space Vision 2047<\/strong>: 56 active assets, projects like Gaganyaan &amp; Chandrayaan-4.<\/li>\n<li><strong>Private Sector Role<\/strong>: National Infra &amp; Monetisation Pipelines launched to boost investment.<\/li>\n<\/ul>\n<h3>7. Industry: Driving Business Reforms<\/h3>\n<ul>\n<li><strong>Industrial Growth<\/strong>: Expected at 6.2% in FY25, driven by electricity and construction.<\/li>\n<li><strong>Smart Manufacturing &amp; Industry 4<\/strong>.0: Promoted through SAMARTH Udyog centres.<\/li>\n<li><strong>Automobile Sales<\/strong>: Domestic sales grew by 12.5% in FY24.<\/li>\n<li><strong>Electronics Production<\/strong>: Grew at 17.5% CAGR (FY15-FY24); 99% of smartphones made domestically.<\/li>\n<li><strong>Pharmaceuticals<\/strong>: Turnover of \u20b94.17 lakh crore in FY24, growing at 10.1% over five years.<\/li>\n<li><strong>Patent Filings<\/strong>: India ranks 6th globally (WIPO Report 2022).<\/li>\n<li><strong>MSME Sector<\/strong>: Emerged as vibrant; Self-Reliant India Fund launched with \u20b950,000 crore corpus.<\/li>\n<li><strong>Cluster Development<\/strong>: Micro and Small Enterprises-Cluster Development Programme for nationwide cluster growth.<\/li>\n<\/ul>\n<h3>8. Services: New Challenges for the Old War Horse<\/h3>\n<ul>\n<li><strong>Contribution to GVA:<\/strong> Service sector&#8217;s share rose from <strong>50.6% (FY14)<\/strong> to <strong>55.3% (FY25)<\/strong>.<\/li>\n<li><strong>Growth Rate:<\/strong> Services grew at <strong>8% pre-pandemic<\/strong> and <strong>8.3% post-pandemic<\/strong> (FY23\u2013FY25).<\/li>\n<li><strong>Global Services Exports:<\/strong> India held <strong>4.3% share<\/strong> in 2023, ranking <strong>7th<\/strong> worldwide.<\/li>\n<li><strong>Export Growth:<\/strong> Services exports surged <strong>12.8%<\/strong> during April\u2013November FY25.<\/li>\n<li><strong>Information Services:<\/strong> Grew at <strong>12.8%<\/strong> over the last decade, increasing share of GVA from <strong>6.3% to 10.9%<\/strong>.<\/li>\n<li><strong>Indian Railways:<\/strong> Passenger traffic grew <strong>8%<\/strong> in FY24, while freight revenue grew by <strong>5.2%<\/strong>.<\/li>\n<li><strong>Tourism:<\/strong> Contributed <strong>5% to GDP<\/strong> in FY23, returning to pre-pandemic levels.<\/li>\n<\/ul>\n<h3>9. Agriculture and Food Management: Sector of the Future<\/h3>\n<ul>\n<li><strong>Contribution to GDP<\/strong>: Agriculture and allied activities contribute 16% to India&#8217;s GDP (FY24).<\/li>\n<li><strong>Growth Drivers<\/strong>: High-value sectors like horticulture, livestock, and fisheries are key growth drivers.<\/li>\n<li><strong>Kharif Food grain Production<\/strong>: Expected to reach 1647.05 LMT in 2024, an increase of 89.37 LMT from last year.<\/li>\n<li><strong>MSP Increases<\/strong>: MSP for Arhar and Bajra raised by 59% and 77%, respectively, in FY24-25.<\/li>\n<li><strong>Sector Growth<\/strong>: Fisheries grew at 8.7% CAGR, and livestock at 8% CAGR.<\/li>\n<li><strong>Food Security Programs<\/strong>: PMGKAY and NFSA mark a shift in food security approach. Free food grains under PMGKAY extended for five years.<\/li>\n<li><strong>Farmer Support<\/strong>: 11 crore farmers benefited under PM-KISAN, and 23.61 lakh enrolled in PM Kisan Mandhan.<\/li>\n<\/ul>\n<h3>10. Climate &amp; Environment: Adaptation Matters<\/h3>\n<ul>\n<li><strong>Sustainable Development:<\/strong> India aims for <strong>developed nation status by 2047<\/strong> with a focus on inclusive and sustainable growth.<\/li>\n<li><strong>Non-Fossil Fuel Capacity:46.8%<\/strong> of India&#8217;s electricity generation comes from <strong>non-fossil fuels<\/strong> (2,13,701 MW capacity as of November 2024).<\/li>\n<li><strong>Carbon Sink Creation:2.29 billion tonnes CO2 equivalent<\/strong> additional carbon sink created from 2005 to 2024.<\/li>\n<li><strong>LiFE Movement:<\/strong> India leads the <strong>Lifestyle for Environment (LiFE)<\/strong> initiative to promote sustainability.<\/li>\n<li><strong>Global Impact of LiFE:<\/strong> By 2030, LiFE could save <strong>USD 440 billion<\/strong> globally through reduced consumption and lower prices.<\/li>\n<\/ul>\n<h3>11. Social Sector: Extending Reach and Driving Empowerment<\/h3>\n<ul>\n<li><strong>Expenditure Growth:<\/strong> Social services expenditure (Centre + States) grew at <strong>15% CAGR<\/strong> from FY21 to FY25.<\/li>\n<li><strong>Declining Inequality:<\/strong> Gini coefficient (measuring income inequality) declined in both <strong>rural<\/strong> (0.237 in FY24) and <strong>urban<\/strong> areas (0.284 in FY24), indicating reduced inequality.<\/li>\n<li><strong>Government Health Expenditure:<\/strong> Health expenditure share increased from <strong>29% to 48%<\/strong>, reducing out-of-pocket expenditure from <strong>62.6% to 39.4%<\/strong>.<\/li>\n<li><strong>Ayushman Bharat Impact:<\/strong> Over <strong>\u20b91.25 lakh crore savings<\/strong> through the <strong>AB PM-JAY<\/strong> scheme, significantly reducing financial strain on households.<\/li>\n<li><strong>Localization of SDGs:<\/strong> The <strong>Localisation of SDGs<\/strong> strategy aligns <strong>Gram Panchayat<\/strong> budgets with <strong>Sustainable Development Goals<\/strong>.<\/li>\n<\/ul>\n<h3>12. Employment and Skill Development: Existential Priorities<\/h3>\n<ul>\n<li><strong>Unemployment Decline:<\/strong> Unemployment dropped to <strong>3.2%<\/strong> in 2023-24 (July-June) from <strong>6.0%<\/strong> in 2017-18 (July-June).<\/li>\n<li><strong>Youthful Demographics:26%<\/strong> of India\u2019s population is aged 10-24, positioning it as one of the youngest nations globally.<\/li>\n<li><strong>Women\u2019s Entrepreneurship:<\/strong> The government has launched initiatives to support <strong>women entrepreneurs<\/strong> with access to credit, marketing, skill development, and startup support.<\/li>\n<li><strong>Job Creation:<\/strong> The <strong>digital economy<\/strong> and <strong>renewable energy<\/strong> sectors are crucial for job growth, aligning with the <strong>Viksit Bharat<\/strong> vision.<\/li>\n<li><strong>Skilled Workforce:<\/strong> The government is building a <strong>skilled ecosystem<\/strong> to adapt to global trends like <strong>automation, AI, digitalization<\/strong>, and <strong>climate change<\/strong>.<\/li>\n<li><strong>PM-Internship Scheme:<\/strong> This initiative is acting as a <strong>transformative catalyst<\/strong> for employment generation.<\/li>\n<li><strong>Formal Employment Growth: EPFO payroll additions<\/strong> have more than doubled in the past six years, signaling robust formal employment growth.<\/li>\n<\/ul>\n<h3>13. Labour in the AI Era: Crisis or Catalyst?<\/h3>\n<ul>\n<li><strong>AI Revolution:<\/strong> AI promises to automate valuable work, surpassing human performance in critical decision-making across sectors like healthcare, research, education, and finance.<\/li>\n<li><strong>Barriers to AI Adoption:<\/strong> Challenges like <strong>reliability<\/strong>, <strong>resource inefficiencies<\/strong>, and <strong>infrastructure deficits<\/strong> hinder large-scale AI adoption, providing policymakers time to act.<\/li>\n<li><strong>India&#8217;s Advantage:<\/strong> As AI is in its early stages, India can strengthen its foundations and harness its <strong>young, tech-savvy<\/strong> population to integrate AI into the workforce, boosting productivity.<\/li>\n<li><strong>Augmented Intelligence:<\/strong> The future lies in combining <strong>human<\/strong> and <strong>machine<\/strong> capabilities, enhancing human potential and improving job efficiency.<\/li>\n<li><strong>Collaborative Effort:<\/strong> Governments, the private sector, and academia must work together to mitigate the societal impacts of AI-driven transformation.<\/li>\n<\/ul>\n<h2>Economic Survey 2024-25 FAQs<\/h2>\n<p><strong>Q1.<\/strong> What is the economic situation in India in 2024?\u00a0<\/p>\n<p><strong>Ans.<\/strong> India\u2019s economy is growing steadily with GDP growth at 6.4% and moderate inflation, facing global challenges.<\/p>\n<p><strong>Q2.<\/strong> What is the real GDP of India in 2024?<\/p>\n<p><strong>Ans. <\/strong>India\u2019s real GDP growth is estimated at 6.4% for FY25, aligning with the decadal average.<\/p>\n<p><strong>Q3. <\/strong>What is the economic survey of India?<\/p>\n<p><strong>Ans.<\/strong> An annual report by the Finance Ministry assessing India\u2019s economic performance, challenges, and policy recommendations.\u00a0<\/p>\n<p><strong>Q4.<\/strong> What is the ranking of India&#8217;s economy in 2024?<\/p>\n<p><strong>An<\/strong>s. India is the largest democracy and the\u00a05th largest economy in the world.<\/p>\n<p><strong>Q5<\/strong>. Who publishes the economic survey?<\/p>\n<p><strong>Ans.<\/strong> The Ministry of Finance, specifically the Economic Division under the Chief Economic Advisor, publishes the Economic Survey.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2097919\" target=\"_blank\" rel=\"nofollow noopener\">PIB<\/a> | <a href=\"https:\/\/www.indiabudget.gov.in\/economicsurvey\/\" target=\"_blank\" rel=\"nofollow noopener\">Ministry of Finance<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Explore India&#8217;s Economic Survey 2024-25, covering GDP growth, inflation, trade, infrastructure, and policy recommendations for future economic stability.<\/p>\n","protected":false},"author":5,"featured_media":44775,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-44773","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/44773","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=44773"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/44773\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/44775"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=44773"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=44773"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=44773"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}