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Home » Economic Survey 2024-25: India’s GDP Set to Grow at 6.4% in FY25

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Economic Survey 2024-25: India’s GDP Set to Grow at 6.4% in FY25

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Last updated: January 31, 2025 7:14 pm
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Economic Survey 2025
Economic Survey 2024-25: India’s GDP Set to Grow at 6.4% in FY25
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New Delhi, January 31, 2025 – India’s real GDP growth is projected at 6.4% in FY25, according to the Economic Survey 2024-25, presented by Union Minister of Finance, Smt. Nirmala Sitharaman in Parliament today. The growth, aligned with the country’s decadal average, is indicative of a resilient economy supported by ongoing structural reforms and deregulation measures. The survey also anticipates growth to continue between 6.3% and 6.8% in FY26.

Key Economic Highlights : Economic Survey 2024-25

AI and Future Workforce Integration
As AI continues to shape global industries, India is positioned to leverage its young and dynamic workforce to integrate artificial intelligence with human capabilities, enhancing productivity and societal benefits.

GDP Growth & Medium-Term Outlook – Economic Survey 2024-25
India’s real GDP and Gross Value Added (GVA) growth are estimated to be 6.4% for FY25. Projections for FY26 suggest steady growth, with a forecast range of 6.3% to 6.8%. Structural reforms at the grassroots level and deregulation are expected to boost the country’s medium-term growth potential and global competitiveness.

Inflation Trends & Monetary Developments – Economic Survey 2024-25
Retail inflation eased to 4.9% in FY25 (April-December), down from 5.4% in FY24, with the Reserve Bank of India (RBI) and the IMF forecasting a return to the 4% target by FY26. Bank credit grew steadily, and the Gross Non-Performing Asset (GNPA) ratio dropped to a 12-year low of 2.6% by September 2024.

Capital Expenditure & Infrastructure Development
India’s capital expenditure (CAPEX) has shown consistent growth from FY21 to FY24, with a post-election YoY growth of 8.2%. Infrastructure investments have soared, with key sectors such as roads, railways, and renewable energy continuing to expand. Additionally, government schemes like the National Infrastructure Pipeline are vital for increasing private sector participation.

Global Export and Foreign Direct Investment (FDI)
India’s overall exports grew by 6% YoY, with the services sector seeing an 11.6% rise in the first nine months of FY25. India has become the world’s second-largest exporter in telecommunications, computer, and information services. FDI inflows surged by 17.9% YoY to USD 55.6 billion in FY25.

Focus on Digital Economy and Green Energy – Economic Survey 2024-25
The digital economy is rapidly evolving, with significant strides made in 5G rollouts and rural connectivity. Meanwhile, India’s installed capacity for renewable energy reached 47% of total energy capacity by December 2024, further underscoring the country’s commitment to sustainable growth.

Agriculture and Employment Trends
India’s agricultural sector continues to perform robustly, with Kharif foodgrain production projected to increase by 89.37 lakh metric tons in FY25. Employment trends have improved, with the unemployment rate falling to 3.2% in 2023-24 from 6% in 2017-18. The government’s PM-Internship Scheme is fostering employment generation, especially among youth.

TAGGED: agriculture growth India, AI in India, capital expenditure India, digital economy India, Economic Survey 2024-25, employment India, FDI India, global competitiveness India, India GDP growth, India's economic outlook, inflation trends India, infrastructure development India, renewable energy India, services export India
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