Economic Survey 2024: All the Key Highlights on Indian Economy

Finance Minister Nirmala Sitharaman presented the Economic Survey in the parliament today. The document presented an optimistic picture of the Indian economy on the back momentum in GDP growth. The government was not able to present the full survey earlier due to general elections in April 2024.

Addressing the outlook for financial year 2025, the survey said that there are factors which can boost the growth in the current fiscal. It said, "A normal rainfall forecast by the India Meteorological Department and the satisfactory spread of the southwest monsoon thus far are likely to improve agriculture sector performance and support the revival of rural demand. Structural reforms such as the GST and the IBC have also matured and are delivering envisaged results. Considering these factors, the Survey conservatively projects a real GDP growth of 6.5–7 per cent."

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For the unversed, Indian economy grew by 8.2 per cent in financial year 2024 on the back of momentum in manufacturing and constructions sectors. Going forward, the government expects trade to pick up which will further boost the economy. "While merchandise exports are likely to increase with improving growth prospects in advanced economies (AEs), services exports are also likely to witness a further uptick," the survey said.

The survey also noted the challenges which the economy can face in the current financial year. As per the document, the biggest one remains geopolitical risks. It said, "Any escalation of geopolitical conflicts in 2024 may lead to supply dislocations, higher commodity prices, reviving inflationary pressures and stalling monetary policy easing with potential repercussions for capital flows. This can also influence RBI’s monetary policy stance."

Talking about the investment from private sector in the economy, the survey highlighted the visible green shoots with a note of caution. In the last four years, government has pushed for capital expenditure with the private sector lagging behind.

It said, "Improved balance sheets will help the private sector cater to strong investment demand. A note of caution is warranted here. Private capital formation after good growth in the last three years may turn slightly more cautious because of fears of cheaper imports from countries that have excess capacity."