Union Budget 2025: 10 Major Takeaways Of Economic Survey

New Delhi: Ahead of the budget presentation scheduled for tomorrow, February 1, Finance Minister Nirmala Sitharaman on Friday tabled India’s Economic Survey for 2024-25 in Parliament. The survey provided an assessment of the performance of the economy in the current financial year, which tried to identify the challenges and suggested future reforms and growth strategies. The survey, prepared by a team led by Chief Economic Adviser V. Anantha Nageswaran, analysed various economic indicators, providing insights to the overall economic outlook.

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10 Key Takeaways From The Economic Survey.

1. The economic survey has noted that the GDP growth rate in FY26 is pegged at 6.3 – 6.8%, driven by agriculture and services. The country’s GDP has significantly slowed down in the recent past. According to the survey, the GDP growth is estimated at 6.4 per cent in FY25 (as per first advance estimates of national income), which is nearly equal to its decadal average. It also observed that real gross value added (GVA) is also estimated to grow by 6.4 per cent FY25.
2. The survey noted that investment, improved consumer confidence, and corporate wage growth are important for promoting economic growth while adding that rural demand and stable macroeconomic conditions offer upside potential. It also called for structural changes, reforms, and deregulation to keep pace with global competitiveness.
3. The Chief Economic Advisor highlighted the need for streamlining regulations, reducing bureaucratic hurdles, and fostering a more business-friendly environment in the country. It also stressed that attracting both domestic and foreign investment to drive economic growth and innovation was also emphasized.
4. The survey also observed that geopolitical tensions, ongoing conflicts, and global trade policy risks continue to pose significant challenges to the global economic view. The last few years have seen major geopolitical tensions, trade wars, and other key developments.
5. It stated that the retail headline inflation has softened from 5.4 per cent in FY24 to 4.9 per cent in April–December 2024, and the capital expenditure (CAPEX) improved continuously from FY21 to FY24. After the Lok Sabha election, CAPEX grew YOY by 8.2 per cent during July–November 2024.
6. The survey also claimed that India accounts for the seventh-largest share in global services exports, underscoring India’s global competitiveness in the sector, adding that from April to December 2024, non-petroleum and non-gems & jewellery exports went up by 9.1 per cent despite facing a volatile situation globally.
7. Regarding employment, the survey observed that the unemployment rate (UR) for individuals aged 15 years and above has declined from 6 per cent in 2017-18 to 3.2 per cent in 2023-24. It opined that the agriculture sector remains strong, consistently operating well above trend levels, while claiming that the industrial sector has also found its footing above the pre-pandemic trajectory.
8. The survey pointed out that the net additions to the Employees’ Provident Fund Organisation (EPFO), a non-governmental organization that promotes retirement savings for employees in India, have more than doubled its subscriptions, rising from 61 lahks in FY19 to 131 lakh in FY24.
9. The survey claimed that new jobs were created in the organized sector, and most of the beneficiaries are the youth, citing that nearly 61 per cent of net payroll additions came from those less than 29 years of age.
10. Last but not least, the number of self-employed workers in the workforce has risen from 52.2 per cent in 2017-18 to 58.4 per cent in 2023-24, according to the Economic Survey. The data shows growing entrepreneurial activity and a preference for flexible work arrangements.