Jammu, Jan 31 : Finance Minister Nirmala Sitharaman has tabled the Economic Survey for 2024-25 in Lok Sabha and Rajya Sabha. Soon after, both the houses were adjourned for the day.
The Finance Minister tabled the pre-budget detailed state of the economy document in the Parliament, a day ahead of the Budget presentation for the next financial year – 2025-26. Finance Minister will present the Union Budget for the fiscal year 2025-2026 and will deliver the budget speech at 11 am tomorrow. She will outline the government’s revenue expectations and expenditure plans.
Sitharaman’s eighth consecutive Budget—a record for any finance minister—will set the tone for economic policy in Modi 3.0, shaping India’s path toward its long-term growth ambitions.
Meanwhile, as per the Economic Survey 2024-2025, a comprehensive assessment prepared by the Economic Division of the Ministry of Finance, has presented a mixed outlook for the Indian economy. While India has made remarkable strides in recent years, surpassing the UK to become the world’s 4th largest economy, it is poised to become the 3rd largest by 2030, overtaking Japan. The Survey credits India’s youthful, dynamic workforce as a critical driver of future growth, with the country’s median age being around 28, much lower than the ageing populations of developed nations.
As per the Economic Survey, the Budget is expected to outline measures for boosting exports, accelerating capital spending, and providing a clear roadmap for structural reforms that will lay the foundation for India’s long-term growth ambitions. Infrastructure development will continue to be a priority, along with expanding production-linked incentives to boost manufacturing.
The Economic Survey gives a detailed assessment of the current state of the Indian economy and its future in 2025-26 fiscal year. The document provides an assessment of the key developments like slowing growth, declining value of the rupee against the US dollar, and subdued consumption demand.
The Survey has projected India’s GDP likely to grow between 6.3% and 6.8% in the financial year 2025-26. The survey highlights the resilience of India’s economy amid global uncertainties, emphasizing the need for ongoing reforms to sustain strong growth.
India’s economy expanded by 5.4% in real terms during the July-September quarter of 2024-25, falling short of the Reserve Bank of India’s (RBI) growth forecast of 7%. Similarly, GDP growth in the April-June quarter also lagged behind the RBI’s expectations. As a result, the RBI has revised its 2024-25 growth forecast down to 6.6%, from 7.2%, while the government anticipates a 6.4% growth rate.
In contrast, India’s GDP grew by 8.2% in 2023-24, making it the fastest-growing major economy, following 7.2% growth in 2022-23 and 8.7% in 2021-22.
The Economic Survey and the Budget discussions have set the stage for heightened expectations regarding tax relief and fiscal stimulus. Finance Minister Sitharaman is expected to introduce measures aimed at boosting consumption while adhering to the fiscal deficit reduction roadmap.
The much awaited announcement is expected to be a revision of income tax slabs, which could provide much-needed relief to the middle class grappling with stagnant wages and high inflation. The New Tax Regime (NTR), introduced in the previous Budget, is likely to remain a key focus. There is anticipation that the NTR may be further simplified, with the inclusion of popular deductions, and the Old Tax Regime (OTR) could eventually be phased out.
The Survey also called for accelerated implementation of the National Education Policy (NEP) 2020. It stressed the importance of aligning regulations from bodies like the UGC and AICTE with NEP’s vision, proposing more autonomy for Higher Education Institutions (HEIs) to create a more flexible and modern educational landscape.
The Economic Survey has highlighted several government initiatives contributing to India’s economic growth. One notable program is the Jal Jeevan Mission, which has provided nearly 12 crore households across the country with access to piped drinking water.
The nationwide unemployment rate (UR) for individuals aged 15 and above (usual status) has steadily declined from 6 percent in 2017-18 to 3.2 percent in 2023-24. India’s agriculture sector experienced a growth of 3.5 percent in Q2 of FY24-25, and with favourable monsoon conditions expected in the next financial year, the production of Kharif food-grains is anticipated to reach 1,647.05 Lakh Metric Tonnes (LMT).
The survey also highlights India’s position as the second-largest exporter of telecom services globally, accounting for 10.2 percent of the global export market. Additionally, the services sector has shown strong growth, with exports rising by 11.6 per cent in the first nine months of FY25, despite the ongoing challenges posed by geopolitical tensions.
What is the Economic Survey:
The Economic Survey document, prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance and formulated under the supervision of the chief economic adviser, gives insights into the state of the economy and various indicators of 2024-25 (April-March) and some outlook for the next fiscal.
The Economy Survey document also typically gives some idea about the tone and texture of the actual Budget for 2025-26, to be presented on Saturday.
Budget session 2025:
The budget session of parliament will begin on January 31 and, according to schedule, will end on April 4.The budget will be presented on February 1. On budget day, the Finance Minister will present the Union Budget in the Lok Sabha at 11 am.
