The Economic Survey 2024, tabled in Parliament yesterday, paints a cautiously optimistic picture of India’s economy. Think of it as a report card that grades the country’s financial health while setting the stage for the upcoming Union Budget. Crafted by the chief economic advisor and their team, this document digs into everything from GDP growth to inflation trends—and even hints at what might lie ahead. Let’s break it down in plain terms.
Economic survey 2024: The Big Picture
Despite shaky global conditions—think geopolitical conflicts, inflation spikes, and supply chain hiccups—India’s economy is holding its ground. The economic survey emphasizes “resilience” as the buzzword, crediting strong fundamentals and government policies for keeping things stable. The focus? Pushing for sustainable and inclusive growth through better infrastructure, digital innovation (hello, tech revolution!), and social welfare programs. Oh, and the government’s dead serious about keeping spending in check to avoid fiscal slip-ups.
India’s Economy: Growth, Inflation, and Investment
GDP Growth:
India’s economy is expected to grow at 6.4% in 2024-25. For the following year (2025-26), growth could swing between 6.3% and 6.8%. Translation: Steady, but not explosive.
Inflation:
Retail inflation eased to 4.9% (April-Dec 2024) from 5.4% last year. Good news for your wallet? Mostly. But food inflation remains stubborn at 8.4% (up from 7.5%). Translation: Your grocery bills might still pinch a little, thanks to pricier veggies and fruits.
Fiscal Deficit:
The government aims to trim the fiscal deficit—the gap between its spending and income—to 5.9% of GDP this year. Ambitious? Yes. Achievable? They’re betting on disciplined spending and smarter tax policies.
Current Account Deficit (CAD):
The deficit narrowed slightly to 1.2% of GDP in Q2 2024-25, down from 1.3% last year. Not a huge leap, but progress.
Foreign Investment:
FDI inflows jumped 17.9% in the first 8 months of 2024-25, hitting $55.6 billion. Global investors? They’re still betting on India.
Foreign Reserves:
Reserves hit $640.3 billion by December 2024—a safety net to cushion against global shocks (like oil price spikes or currency wobbles).
Trade: Import & Export
India’s export performance is also quite good. Merchandise and services exports have seen overall exports grow by 6% in the first 9 months of FY25. Services exports have grown by 11.6%, which is quite encouraging.
New Income Tax Regime AY 2025-2026
In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced income tax relief, raising the tax exemption limit to Rs 12 lakh. The new tax regime simplifies the system, with a special emphasis on benefiting the middle class. This move aims to ease financial burden and promote economic growth.
| Income (in Rs) | Tax Rate |
| 800,001 – 1,200,000 | 0% |
| 400,001-800,000 | 5% |
| 2,000,001 – 24,000,000 | 10% |
| 1,200,001 – 1,600,000 | 15% |
| Above 2,400,000 | 20% |
| Above 2,400,000 | 25% |
| Above 24,00,000 | 2,000,001-2,400,000 |
Sector Performances:
Agriculture
The importance of agriculture has been highlighted in this economic survey. Because of government efforts, there is hope to grow the agriculture sector up to 3.8% in FY25.
Industry:
The industrial sector is recovering quite well, especially in manufacturing. Government initiatives like the “PLI scheme” are having a very positive impact. Industry 6.2% growth is expected in FY25.
Services:
The services sector is the main driver of India’s economic growth. IT and financial services are performing quite well. Services exports have grown by 12.8% between April and November 2024.
Government Initiatives:
Some key government initiatives are also highlighted in this economic survey, which are contributing to Indian economic growth.
Infrastructure Development:
The government’s focus is to make world-class infrastructure so that Indian roads, ports, and airports can be improved.
There is a goal of the government to accelerate digitalization so that efficiency and connectivity can increase in every corner of India.
Social Sector:
The Indian government has also focused on social development, especially on healthcare, education, and welfare schemes.
Challenging and future Outlook
The Economic Survey also states that India’s economy still has to face some challenges. Issues like global uncertainty, inflation, and income inequality have not come to the fore. But the government plans to keep implementing reforms so that sustainable and inclusive growth can be achieved.
Conclusion:
The Economic Survey 2024-25 overall gives a balanced view—India’s economy is resilient but still needs improvement in some areas. The government is making a lot of efforts, but continuous reforms and strategic policies are necessary for long-term growth.
The government’s goal of accelerating digitalization in India aims to enhance efficiency and connectivity across the country. Alongside, the Indian government has prioritized social development, with a particular focus on healthcare, education, and welfare schemes. Despite progress, the Economic Survey highlights persistent challenges such as global uncertainty, inflation, and income inequality that need to be addressed. However, the government remains committed to implementing reforms for sustainable and inclusive growth. In summary, the Economic Survey 2024-25 provides a balanced perspective, acknowledging India’s resilient economy while emphasizing the need for continuous reforms and strategic policies to drive long-term growth.
