New Delhi: The Indian economy is expected to grow at a rate of 6.3% to 6.8% in the financial year 2025-26 (FY26), according to the Economic Survey 2024-25 presented in Parliament today by Finance Minister Nirmala Sitharaman.
Despite global uncertainties, the survey highlights strong domestic economic fundamentals, a declining unemployment rate, and stable inflation. It also underscores the need for further reforms to sustain economic growth.
Key Takeaways from the Economic Survey 2024-25:
GDP & Growth Outlook:
India’s GDP growth projected between 6.3% and 6.8% for FY26.
This will be the lowest growth rate since 2020-21, when the economy shrank by 5.8% due to Covid-19.
The GDP rate was 9.7% in 2021-22, 7% in 2022-23, and 8.2% in 2023-24.
Inflation & Economic Stability:
Food inflation expected to soften in Q4 FY25, aided by seasonal easing of vegetable prices and Kharif harvest arrivals.
Inflation risks from higher commodity prices appear limited, but geopolitical tensions remain a concern.
The Rupee’s depreciation in 2024 was mainly due to a strong US dollar, geopolitical tensions, and uncertainty around the US elections.
Reforms & Policy Recommendations:
India needs to boost global competitiveness through grassroots-level structural reforms and deregulation.
Lack of AI governance frameworks could lead to potential abuse or misuse of technology.
The insolvency law’s deterrent effect has led to early-stage debt resolution for thousands of debtors.
The government must address entry costs, information asymmetry, and the absence of a secondary market to boost liquidity in the corporate bond market.
Global Challenges & Market Risks:
India must navigate global headwinds with strategic and prudent policy management while reinforcing domestic economic fundamentals.
Geopolitical risks and trade uncertainties could pose challenges to growth momentum.
A major market correction in 2025 could impact India, especially with the rise in new retail investor participation.
Upcoming Union Budget 2025-26
Finance Minister Nirmala Sitharaman will present the Union Budget 2025-26 on Saturday, where further measures to strengthen economic resilience and fiscal policies are expected.
For more updates on the Economic Survey and Budget 2025-26, stay tuned to The Pragathi News.
