India’s real GDP is expected to grow between 6.5 and 7 per cent in 2024-25, according to the Economic Survey presented by Finance Minister Nirmala Sitharaman in Parliament on July 22. The survey, released a day before the presentation of the budget for the fiscal year, is in line with the International Monetary Fund’s (IMF) estimate of 7 per cent.
Importance of Economic Survey
The Economic Survey is an annual report that assesses the country’s economic condition in the previous financial year. The report is prepared under the supervision of Chief Economic Advisor V Anantha Nageswaran. It analyses the country’s economic growth rate, inflation, and the performance of various sectors. The survey said that “the survey projects real GDP growth between 6.5-7 per cent, with risks balanced, given that market expectations are higher.”
Comparison with previous estimates
Earlier, in the interim budget presented on February 1, the finance ministry had projected GDP growth rate for FY25 at around 7%. In June, the Reserve Bank of India (RBI) raised the growth forecast for FY25 from 7 per cent to 7.2 per cent. The country’s growth rate has been above 7 per cent in the last three years.
Challenges to economic growth
However, the Economic Survey has also mentioned some challenges that could impact India’s growth rate. The impact of global growth and the impact on employment due to new technological changes such as Artificial Intelligence (AI) have also been included in the survey. It said that “India’s growth outlook does not depend only on domestic performance but also reflects the impact of global events.”
Future prospects
The Economic Survey also said that if there are no major obstacles in FY25, it will be the fourth year after the Covid-19 pandemic when the Indian economy will register growth of more than 7 percent. The government aims to become a $7 trillion economy by 2030. This requires India to improve the quality of its production and reduce logistics costs so that it can maintain competitiveness in global trade.
India’s economic growth prospects are positive, but at the same time there are some challenges that need to be taken into account. The Economic Survey has not only assessed the current situation but also laid down the direction of future policies and reforms. Finance Minister Nirmala Sitharaman’s upcoming budget will be prepared based on the findings of this survey, which will determine the country’s economic direction.
