Economic Survey 2024 -25 Highlights

India’s economy projected to grow between 6.3% and 6.8% in FY26.

The survey highlights strong economic fundamentals, backed by a stable external account, fiscal consolidation, and private consumption. The government aims to boost long-term industrial growth through R&D, MSMEs, and capital goods, enhancing productivity and global competitiveness.

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The survey noted that food inflation is likely to ease in Q4 FY25, driven by seasonal drops in vegetable prices and the Kharif harvest. A strong rabi production is also expected to stabilize food prices in H1 FY26. However, risks remain from adverse weather and rising global agricultural prices.

Global energy and commodity prices have softened, stabilizing core inflation, but uncertainties in the global political and economic environment continue to pose challenges.

India’s foreign exchange reserves remain robust, covering 90% of external debt and providing over ten months of import cover. Reserves rose from USD 616.7 billion in January 2024 to USD 704.9 billion by September 2024, before easing to USD 634.6 billion as of January 3, 2025. Stable capital flows have been crucial in maintaining external strength.

The survey highlighted significant growth in formal employment, with EPFO net subscriptions more than doubling from 61 lakh in FY19 to 131 lakh in FY24, reflecting strong expansion in the formal sector.

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