Economic Survey 2025: Highlights, Summary, PDF Download

The Economic Survey is an essential annual report released a day before the Union Budget. It offers a comprehensive analysis of the country’s economic performance. It serves as a key document for policymakers and the public alike, providing valuable insights into the nation’s economic trends, progress, and opportunities. Released on January 31, 2025, for the financial year 2024-25, the survey delves deeper into the current economic landscape, highlighting critical developments and outlining the government's roadmap for the future, making it a crucial reference for understanding the direction India is heading in.

Here's the video of Press conference by Chief Economic Advisor

What Is An Economic Survey?

The Economic Survey is a report the Chief Economic Advisor prepared for the Ministry of Finance detailing India's economic status and performance over the previous year. It captures India's growth curve and examines its progress in various sectors whilst defining the economy's current state and what drives it. The government has also emphasised the medium-term outlook and fiscal policy stance. The government aims to present a factual, unbiased review of India's economic progress through this document.

Highlights of Economic Survey 2025

• India has displayed steady economic growth. India's real GDP growth of 6.4 % in FY25 remains close to the decadal average.
• There is a decrease in retail headline inflation from 5.4% in FY24 to 4.9% in April-December 2024. 
• Food inflation, measured by the Consumer Food Price Index, rose from 7.5% in FY24 to 8.4% in FY25, mainly due to higher prices of vegetables and pulses.
• India’s inflation is expected to align with the RBI and IMF target of around 4% by FY26.
• Gross Foreign Direct Investment inflows were back on track, registering a revival, increasing from $47.2 billion in the first eight months of FY24 to $55.6 billion in the same period of FY25, a YoY growth of 17.9%
• India's foreign exchange reserves rose from $616.7 billion at the end of January 2024 to USD 704.9 billion in September 2024 before easing to $634.6 billion as of 3 January 2025.

Summary of Economic Survey 2025

GDP Growth

• India's GDP growth in FY25 is estimated to be 6.4%. While this makes for steady progress, the nation must maintain around 8% average growth rates at constant prices for the next decade to achieve the long-term goal of becoming a Viksit Bharat by the centenary year of independence.
• The agricultural sector is forecasted to grow by 3.8% in FY25, while the industrial sector will expand by 6.2%. The services sector will be the primary growth driver, at 7.2%, with intense activity in financial services, real estate, professional services, and public administration.
• Private final consumption expenditure at constant prices is estimated to have risen 7.3% in FY25 due to the pick-up in rural demand. As a proportion of GDP at current prices, private final consumption expenditure will increase to 61.8%, a new high since FY03. GFCF is expected to have risen by 6.4%, thus indicating continued momentum in investment activity.

Monetary Management

• In FY25-April-Dec, RBI's MPC sustained the repo rate at 6.5% while shifting the policy stance from ''withdrawal of accommodation'' to "neutral" in October and reducing CRR to 4% in December. RBI injected 1.16 lakh crore liquidity in this quarter. Money supply growth has shown a YoY increasing trend of 3.6% for Reserve Money and 9.3% for Broad Money, with Bank credit contributing to this growth.
• Scheduled Commercial Banks (SCBs) recorded a Capital-to-Risk-Weighted Assets Ratio, or CRAR, of 16.7% as of the close of September 2024, thus well above the regulatory requirement. During the first half of 2025, SCBs registered a year-on-year growth of 22.2% in Profit After Tax( PAT) consolidated by effective operational performance. RoE and RoA are also on a steady ascent track.
• India's primary markets mobilised ₹11.1 lakh crore from April to December 2024, a 5% increase from FY24. There was a significant rise in IPO activity, market capitalisation, and mutual fund participation, as reflected in a 33% growth in demat accounts and a doubling of SIP flows and unique mutual fund investors over the past three years.
• Financial inclusion has strengthened, with the RBI’s Financial Inclusion Index rising to 64.2 in March 2024, supported by Regional Rural Banks (RRBs) operating across 700 districts with 92% of branches in rural/semi-urban areas, holding ₹6.6 lakh crore in deposits and ₹4.7 lakh crore in advances, and playing a key role in expanding financial access.
• India’s insurance market continued to grow in FY24, with total premiums reaching ₹11.2 lakh crore, posting a growth of 7.7% YoY. However, insurance penetration declined slightly to 3.7%. Insurance density reached USD 95, mainly due to a growth in the increase in non-life premiums and life insurance premiums, both increasing to ₹2.9 lakh crore and ₹8.3 lakh crore, respectively. Health and motor insurance were key contributors.

External Sector

• The total exports (merchandise and services) increased by 6% for the first nine months of FY25, at $602.6 billion. Goods and services exports, excluding petroleum, gems, and jewellery, rose 10.4% over the year. Merchandise exports grew 1.6% YoY for April–December 2024, with a 5.2% rise in imports, which thus reached $682.2 billion, up 6.9%. Total imports continued to grow due to steady demand from the domestic sector.
• India's resilient services exports earned the country the seventh-largest share in the global services trade. A substantial services trade surplus and remittances at an all-time high, driven by job creation in OECD economies, also helped the current account deficit (CAD) stay contained at 1.2% of GDP in Q2 FY25.
• Foreign Direct Investment (FDI) inflows rebounded in FY25, increasing 17.9% YoY to $55.6 billion during the first eight months. Foreign Portfolio Investment (FPI) flows were erratic due to global geopolitical and monetary policy factors.
• India's Forex Reserves rose from $616.7 billion in January 2024 to $704.9 billion in September 2024, easing towards $634.6 billion in January 2025. It holds 90% of external debt and over ten months of import cover. Therefore, India stays financially stable.

Prices and Inflation

• Retail headline inflation eased from 5.4% in FY24 to 4.9% in April–December 2024, in line with the global moderation in inflation, which declined from 8.7% in 2022 to 5.7% in 2024. However, overall inflation is easing, while food inflation, as measured by the Consumer Food Price Index (CFPI), rose from 7.5% in FY24 to 8.4% in FY25 (April–December), mainly due to increasing vegetable and pulse prices.
• Though encompassing a mere 8.42% of the Consumer Price Index basket, vegetables and pulses accounted for 32.3% of inflation in FY25. Without these items, the average food inflation rate turns out to be 4.3% (4.1% lower), and the headline inflation rate reduces to 3.2%, 1.7% lower than actual inflation.
• A good Rabi harvest is likely to soften food inflation in Q4 FY25, with inflation expected to be around 4% by FY26, as targeted by the RBI and IMF. However, risks remain due to adverse weather conditions and rising global agricultural commodity prices. Still, stability in inflation, fiscal health, and the external sector balance continue to support India's economic growth.
• A good Rabi harvest will likely soften food inflation in Q4 FY25, which could potentially settle at 4% by FY26, as RBI and IMF would be expecting. There have been risks in the back of adverse weather conditions and rising international agricultural commodity prices. However, stability in the following variables continues to help India's growth: inflation, fiscal health, and the balance of the external sector.

Infrastructure Development

• Government infrastructure spending rose 38.8% from FY 20 to FY 24. It is expected to remain significant in the next decade, with a projected capital expenditure of ₹111 lakh crore, up from ₹102 lakh crore secured for the National Infrastructure Pipeline (NIP). The government is encouraging private sector participation in infrastructure projects by introducing innovative investment schemes. Ports and shipping are significant components of government infrastructure spending, constituting 60% of the capital expenditure from April to December 2024.
• 51 Vande Bharat trains and 672 coaches were produced during FY 24. For FY 25 (until October), 68 trains and 900 coaches are targeted for production. Four new UDAN airports and 74 additional UDAN routes have been introduced, improving regional air connectivity.
• The share of renewable energy in total energy production increased from 38.6% in FY 21 to 47.1% in FY 25 (as of December 2024), highlighting a substantial shift toward sustainable energy sources.
• Rural households with access to safe piped drinking water increased from 3.2 crore in August 2019 to 15.3 crore by November 2024. Eight states, including Mizoram, Arunachal Pradesh, and Himachal Pradesh, have achieved full coverage. As of November 2024, 13 states have achieved ODF status, compared to only five states by March 2024.
• Cement and steel production has steadily increased, supporting infrastructure and industrial growth. Intellectual property filings (trademarks, copyrights, patents, and designs) have nearly doubled from FY 2016-17 to FY 2023-24. Over 80% of patent, copyright, and design filings have been granted IPR status, with trademark filings receiving IPR approval at a rate of 70-80%.
• High-speed broadband connections will increase to 12 lakh by December 2024, improving digital connectivity nationwide.

Agriculture and Food Management

• The agricultural sector recorded a growth rate of 3.5% in the second quarter of FY25, reflecting a recovery from the previous four quarters, where growth ranged from 0.4% to 2.0%.
• By March 2024, operational Kisan Credit Card (KCC) accounts reached 7.75 crore, with an outstanding loan amount of ₹9.81 lakh crore, reflecting better financial access for farmers and allied sectors.
• As of March 31, 2024, 1.24 lakh Kisan Credit Cards (KCC) were issued for fisheries and 44.40 lakh KCCs for animal husbandry. This shows that agriculture and allied industries have easy access to working capital.
• Ground-level credit to agriculture has grown at a CAGR of 12.98% from FY15 to FY25, indicating stronger financial support.

Climate and Environment

• As of 30 November 2024, India has successfully established an installed electricity generation capacity of 213,701 megawatts from non-fossil fuel sources. This accounts for 46.8% of the total electricity generation capacity, and the goal is to reach 50% by 2030.
• As of 31 December 2024, 1.81 gigawatts of the 8.2 gigawatts of sanctioned solar capacity had been commissioned under the Central Public Sector Undertaking Scheme Phase-II.
• Three hundred ninety-seven megawatts of decentralised solar capacity were installed under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PMKUSUM) scheme. As of 31 December 2024, 7.28 lakh agricultural pumps had been solarised.
• As of 9 January 2025, over 7 lakh households had received rooftop solar plants in the PM—Surya Ghar: Muft Bijli Yojana.

Social Sector 

• According to estimates by the Ministry of Education, total expenditure on education during FY24 (BE) amounts to ₹9.7 lakh crore. Social services' expenditure as a proportion of total expenditure has been escalating, thus marking progress toward increasing spending on education, health-care, and other social activities.
• Under Samagra Shiksha, funds have been allocated to support Children with Special Needs (CwSN) through aids, assistive devices, Braille materials, and therapeutic interventions.
• The Government of India Ayushman Bharat expanded Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) to include senior citizens aged 70 and above, providing free health coverage of up to ₹5 lakh per family. This move has benefited six crore senior citizens across 4.5 crore families. Eligible seniors will receive a dedicated Vay Vandana Card and an additional ₹5 lakh annually for their healthcare needs, separate from their family's coverage. As of 15 January 2025, over 40 lakh senior citizens have been enrolled.
• By the end of FY24, Universal Immunization Programme had reached its full immunization coverage of 93.5%. The scheme continues to afford equal access to essential vaccines in order to guard public health.
• The Jan Aushadhi scheme, which sells affordable medicines, has gained considerable momentum. It recorded sales of record levels in 2024 and expanded to over 14,000 kendras across the country.
• Under the Pradhan Mantri Gram Sadak Yojana (PMGSY), 7.7 lakh km of roads have been constructed, improving rural connectivity.
• Under the Pradhan Mantri Awas Yojana - Gramin (PMAY-G), 2.69 crore houses have been built, enhancing rural housing infrastructure.
• The Jal Jeevan Mission (JJM) has significantly improved access to clean water in rural areas by providing tap water to 12.2 crore households.

Employment and Skills Development

• The National Apprenticeship Promotion Scheme (NAPS) has seen women’s apprenticeship share grow from 7.7% in FY17 to 22.8% in FY25. This showcases progress in integrating women into the workforce.
• Women’s participation in skilling programs under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) reached 58% in FY25, reflecting increased inclusivity in vocational training.
• The Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2023-24 results show significant labour market improvements, particularly in the non-agricultural unincorporated sectors. The hired workers increased from 2.95 crore in 2022-23 to 3.15 crore in 2023-24.
• In April-November 2024, 47% of net payroll additions came from the 18-25 age group and nearly 61% from those under 29. This indicates that new jobs in the organised sector primarily benefit the youth.
• Between April and November 2024, cumulative net additions to EPFO reached 95.6 lakh. This marked a 3% year-on-year increase compared to 92.9 lakh during the same period in FY24.
• The eShram portal has registered over 30.51 crore unorganised workers by 31 December 2024, creating a National Database of Unorganised Workers (NDUW).
• The Economic Survey emphasises that AI adoption could drive economic growth and improve labour market outcomes in India, urging education and skill development prioritisation.

GST 

• The survey acknowledged the benefits of implementing GST, from enhancing the ease of doing business to giving impetus to digitalisation, fostering economic integration via the creation of a single market, and adding to the buoyancy of revenue generation and collection.
• As per CAG monthly provisional accounts, the GST collection is projected to increase by 14.2% from April to November’25 compared to the corresponding period in FY 2024. Also, among the state-specific taxes, GST will see the maximum growth compared to stamps and registration(13.1%), sales tax(4.6%), sales excise duties(9.5%), and other taxes(8.9%), whereas land revenue declined by -14.9%.
• For 23 States, GST was the primary source of revenue amongst their Own Revenue Receipts (ORR), with Manipur and Nagaland relying the most on it, at 78% and 72%, respectively.
• Government initiatives like the Niryat Bandhu scheme, financial assistance to e-commerce exporters under the Market Access Initiative (MAI) scheme, export and packing credit, e-commerce export hubs, Dak Niryat Kendra, electronic Bank Realisation Certificate (e-BRC), along with the benefit of zero-rated supplies and GST refunds to e-commerce exporters are driving India’s e-commerce exports. 
• With GST, things in the real estate sector have become more straightforward. It has helped to simplify the taxation structure in real estate transactions by applying a single unified tax system across states. Also, encouraging proper invoicing and documentation has reduced the scope for tax evasion.
• The government's move to abolish the angel tax on startup investors' investments is expected to boost the country's global innovation and entrepreneurial competitiveness. Reforms like the abolition of the 2% equalisation levy, relief from GST on data centre exports, reduction of TCS rate on e-commerce operators, etc., will also help.
• In July 2024, the government announced a uniform 5% IGST on imported aircraft parts and tools, applicable regardless of HSN classification.

In conclusion, India’s economic outlook for FY26 remains promising, with strong rural demand, a rebound in agricultural production, and a stable macroeconomic environment supporting growth. The expectations for the Union Budget 2025 align with the Economic Survey’s focus on growth across key sectors. With India’s growing workforce and a shift towards digital solutions, the budget can play a key role in turning these goals into action. 

Economic Survey 2024 PDF Download 

Download the Economic Survey 2024-25 PDF from the government's official website - https://www.indiabudget.gov.in/economicsurvey/index.php 

Direct link to download the Economic Survey 2024-25 PDF - https://www.indiabudget.gov.in/economicsurvey/doc/echapter.pdf 

Related Articles

• Budget 2025 Live Updates
• Budget 2025 - Date, Time, When and Where to Live?
• Budget 2025 Expectations on Income Tax
• Budget 2025 Expectations: Top 7 Expectations from Union Budget
• Economic Survey 2024: Highlights, Summary, PDF Download