Economic Survey of India 2025
Economic Survey 2025 Highlights
The Economic Survey 2025 was released on January 31, 2025. It includes in-depth analysis of the economic performance of India in the previous year. Here are the Economic Survey 2025 Highlights:
- India’s real GDP growth is projected at 6.4% for FY25, The real GVA (Gross Value Added) is also expected to grow at 6.4% in FY25. GDP growth for FY26 is forecasted between 6.3% and 6.8%.
- All the sectors are functioning as expected. The Agriculture Sector continues to operate above trend levels. Industrial Sector rebounded strongly post-pandemic whereas Service Sector has stabilized its growth at pre-pandemic levels.
- Retail inflation has reduced from 5.4% (FY24) to 4.9% (April-December 2024) due to government interventions. Consumer price inflation is expected to align around 4% in FY26.
- Gross NPAs (Non-Performing Assets) of banks dropped to a record low of 2.6% (as of Sept 2024). Credit-GDP gap reduced from -10.3% (Q1FY23) to -0.3% (Q1FY25). Insurance market has grown 7.7% year-over-year, reaching ₹11.2 lakh crore in FY24.
- Foreign Direct Investment has increased by 17.9% year-over-year, reaching $55.6 billion in FY25. Overall exports (merchandise + services) grew 6% year-over-year, in the first nine months of FY25.
- The Union Government’s capital expenditure (capex) on infrastructure increased by 38.8% (FY20-FY24).
- Industrial sector grew by 6.2% in FY25 (as per first GDP advance estimates). Steel production grew by 4.6%, while automobile domestic sales increased by 12.5% in FY24.
- Electronics production grew at a CAGR of 17.5% (FY15-FY24). Textiles, apparel, pharmaceuticals, and steel industries witnessed steady growth.
- Service sector contributes 55.3% to total GVA in FY25 (up from 50.6% in FY14) majorly focusing on the Skill development for workforce and simplifying grassroots-level regulations.
- Agriculture & other related activities contribute 16% to GDP (FY24).