# What is Economic Survey? The Economic Survey of India is an annual document of the Ministry of Finance, Government of India which provides a detailed report of the state of the national economy. The Survey is presented in the Parliament every year during the Budget Session. It is prepared by the Economic Division of the Department of Economic Affairs (DEA) in the Union Finance Ministry, under the guidance of the Chief Economic Adviser. It is finally approved by the Union Finance Minister. **Significance of the Economic Survey:** The recommendations made in the survey are not binding on the Budget, but it remains the most authoritative, comprehensive analysis of the economy. **History of the Economy Survey:** The first Economic Survey was presented in FY50-51. Traditionally, it was presented along with the Union Budget, but since 1964 it is presented separately. Initially, the survey was presented in one volume, with specific chapters dedicated to different sectors of the economy. However, between FY10-11 and FY20-21, the survey was presented in two volumes to deal with some specific issues faced by the economy. In FY22-23, the survey reverted to a single-volume format. # **Summary of Economic Survey FY24-25** The Minister of Finance, Government of India presented the Economic Survey FY24-25 in the Parliament in January 2025 during the budget session. Key highlights of the survey are given below: ## Chapter 1: State of the Economy 2024 was an eventful year worldwide - from general elections across several countires to frequent cyberattacks to major geopolitical tensions. The Israel-Hamas conflict and the Russia-Ukraine war increased regional instability. All these factors influence growth, supply chains, inflation and financial markets. Increased risk is also indicated by the World Trade Uncertainty Index and the Geopolitical Economic Policy Uncertainty Index, which remains elevated due to global concerns about economic policies.  Despite these concerns, the global economy grew moderately by 3.3 percent in FY22-23 and is projected to grow by 3.2 percent and 3.3 percent in FY24-25 and FY25-26 respectively, as per the International Monetary Fund (IMF) estimates. Globally, Inflation rates across various economies have moderated and are falling in line with the central bank target levels. This is because of tighter monetary policy regimes and supply chains adapting themselves to economic uncertainty.  For India's economy, the real GDP growth for FY24-25 is estimated to be 6.4 percent as per the Ministry of Statistics & Programme Implementation (MoSPI). The agriculture sector is expected to grow by 3.8 percent, the industrial sector is expected to grow by 6.2 percent and the services sector is expected to grow by 7.2 percent. Navigating the global uncertainities will require strategic policy management and reinforcing the domestic fundamentals. The fundamentals of Indian economy remain strong, led by stable private consumption, calibrated fiscal consolidation and strong external accounts. Considering these factors, the GDP growth in FY25-26 is projected between 6.3 and 6.8 percent.  Inflationary pressures eased in most economies but, service inflation has remained persistent. Although commodity prices have stabilized, the risk of synchronized price increases persists. With growth varying across economies and last-mile disinflation proving sticky, central banks may chart varying paths of monetary easing. This will lead to uncertainty over future policy rates and inflation trajectories. Geopolitical tensions, ongoing conflicts, and trade policy risks continue to pose significant challenges to global economic stability. ![](https://d3ol6uk36dipeb.cloudfront.net/User(5)/website_media/image/107860--?Expires=1745581005&Signature=Eo7hEXdmastgFFT8xiKJ8UFTbpQGEu5oxxFlMQq7U6TZGclj6QLcN5vOGEOXpkhTPAxGy7jA8FrY~BP8nJDD58N6v4h1oaBs1o6cTvHGxi-ZMYwaQYBj~AswUHzl3crrQ3P~7o7gS~2kHt0TpLW7SgyLT3bkqDuQEBfjF4Jr0WiR5UO4rQJVRvpg18YXy5qzJF3D1Ofy5XOYVdqSTrgLKsG9hYb1qwlFkLgE4DUmdSOqIXsgBId-XUWBvzKB5I5lM6x39~lzlM95MGBDJeDmmzbNWPcwz4uham738jZ8RwF3C6sXnKr7irGMoMs1G3jeGhDSkbtrkkGfSaMs9X~Hag__&Key-Pair-Id=mcgrawhill_cloudfront_private_key) ## Chapter 2: Monetary and Financial Sector Developments India’s monetary and financial sectors have performed well with bank credit growing at a steady rate and scheduled commercial banks (SCBs) showing consistent improvement in profitability. The gross non-performing assets (GNPAs) of SCBs in India declined to a 12-year low of 2.6 percent of gross loans and advances at the end of September 2024. Under the Insolvency and Bankruptcy Code, ₹3.6 lakh crore were realized in resolution till September 2024 which amounts to 161 percent against the liquidation value of assets involved. Banks in India are using Artificial intelligence and Machine Learning in various areas such as credit underwriting, liquidity management, fraud detection, risk assessment and chatbots. However, using AI in the banking system also involves some risks such as cyber risks, malicious usages like identity fraud and market manipulation, inadequate human oversight due to over-reliance on AI, etc. Hence, a strong AI governance system should be established which is crucial for addressing the challenges that come along with the implementation of AI systems. In the Indian stock markets, the total resource mobilization from primary markets (equity and debt) was ₹11.1 lakh crore from April to December 2024, 5 percent more than the amount mobilised during FY23-24. BSE stock market capitalization to GDP ratio stood at 136 percent at the end of December 2024, far higher than other economies like China (65 percent) and Brazil (37 percent).  The total insurance premiums in India grew by 7.7 percent YoY in FY23-24. The total number of pension subscribers in India grew by 16 percent YoY as of September 2024. There is a potential risk of the emergence of financialization, which means the dominance of financial markets in shaping policies and macroeconomic outcomes. In advanced economies, financialization has led to unprecedented levels of public and private sector debt. Economic growth has become overly reliant on rising asset prices to offset leverage, increasing inequality. As India aims to achieve the target of becoming a developed nation by 2047, a fine balance should be maintained between financial sector growth and development on the one hand and financialization on the other. ## Chapter 3: External Sector The total exports registered a consistent growth of 6 percent in the first nine months of FY24-25. Growth in services and goods exports (excluding petroleum, gems and jewellery) was around 10.4 percent. Total imports during the same period registered a growth of 6.9 percent. India’s share in global services exports has more than doubled to 4.3 percent in 2023 from 1.9 percent in 2005. India is the world's 2nd largest exporter in Telecommunications, Computer, & Information Services, with a global export market share of 10.2 percent. There are various challenges faced by India's external sector which include the increased protectionist tendencies by various countries, technical barriers to trade, non-tariff measures, disruptions in global trade due to the Russia-Ukraine war, the Red Sea crisis and drought in the Panama Canal. In this background, India is adopting the strategy to diversify its export basket by targeting new markets. India is also in the process of negotiating a number of Free Trade Agreements (FTA) with countries and trading blocks. Directorate General of Foreign Trade has launched the Trade Connect e-Platform to transform the international trade landscape for Indian exporters. The gross FDI inflows to India increased from USD 47 billion in the first eight months of FY23-24 to USD 55 billion in the same period of FY24-25, a year-on-year growth of over 17 percent. In the long term, the cumulative FDI inflows into India surpassed the USD 1 trillion mark from April 2000 to September 2024, solidifying India’s position as a significant global investment destination. India’s foreign exchange reserves stood at USD 640 billion as of the end of December 2024, which is sufficient to cover around 90 percent of the country’s external debt of USD 711 billion as of September 2024. This indicates a strong buffer by India against external vulnerabilities. ![](https://d3ol6uk36dipeb.cloudfront.net/User(5)/website_media/image/107861--?Expires=1745581005&Signature=jX7ERW9AMGr~kWnFl5I45PWFGHqg0Wz56mmv8D66NyhJlvqnIbWQOX~CrpH4KRMWrbz4u~OoFLTvb~-TW44O2XyBNrQ4YfhL-Aurr-uzGwRRhZDhsDi2Bq-h2lhu2usyzhosO4-9pxrELsSzK32JW3dtRBaAIR8FMDNQ9Fc6u2SnpHHoa2TX4jryvQP7q~Roneuh5Qh9slvYBAbR--71UEtBNszoxhRlEopZWUNAZnvwXJZOZ31U~thLWwiMh-r5D2zdAcmHsKciI~Ql2nD09R9Ff0oCEnAeAaetNPABex5lNghKJXXRFQ5tez6yYhaS51k-D334RdTUt5a79T5TgA__&Key-Pair-Id=mcgrawhill_cloudfront_private_key) ## Chapter 4: Prices and Inflation  As per the International Monetary Fund (IMF) estimates, the global inflation rate reduced to 5.7 percent by 2024 from its peak of 8.7 percent in 2022. As per the Reserve Bank of India (RBI), retail inflation in India reduced from 5.4 percent in FY23-24 to 4.9 percent in April-Dec 2024. RBI and IMF project that India’s consumer price inflation will gradually align with the target of around 4 percent in FY25-26. Over the past two years, India's food inflation rate has remained high in comparison to the global trends of stable or declining food inflation. There are several factors for this such as reduced harvest of some food items and supply chain disruptions led by extreme weather events. ![](https://d3ol6uk36dipeb.cloudfront.net/User(5)/website_media/image/107862--?Expires=1745581005&Signature=cU6QjcWzwrihpJZQ~6QhoRUMx7Gt-qiEEOH4Eiutv1SUFb9~B5wvc-5GdWjlN9zNX5pJJ1b9uuDuac8BJtq-GRxdAEvj3b0t~nqyA4sWwM8~M~fHsvC6jAHRPn2ozMnQoawAreNUKIx7pvEEJUEMgbR0QEsd0a1D0L8fp4ZxsPoBOGfYPI3q2NRIIzJozjislP6MpV1MBlYpkDWNbd7dW6LFp~erNypYDeTqSGD66P-0Qd3D8HYozFwNqCDLK1pfC-aB95LifzCJwJmWnskgA1MGIXolHlA2Ld8-9cT~UPT7BzS3PFkW-J-dZju-cxZTXkGxxWlfWbCHT9Fy1Tq33A__&Key-Pair-Id=mcgrawhill_cloudfront_private_key) Chapter 5: Medium-Term Outlook ------------------------------ Since the 1980s, the pace of globalization has increased significantly. In 1980, global trade accounted for about 39 percent of world GDP which increased to 60 percent by 2012. Global FDI inflows increased from around USD 54 billion in 1980 to over USD 1.5 trillion in 2019. By 2022, around 66 percent of the global population had access to the Internet which revolutionised trade and communication. The next couple of decades are likely to be about geo-economic fragmentation, which is defined as the reversal of global economic integration mainly guided by strategic considerations such as opposition to globalization by local communities, rising geopolitical tensions and the breakout of wars. These factors represent an unprecedented economic challenge and opportunity for India. The focus should be on reducing the regulatory compliance burden as over-regulation stifles economic dynamism and innovation. Enhancing economic freedom for small businesses and individuals is regarded as the most important policy priority to boost India's medium-term growth prospects.  ![](https://d3ol6uk36dipeb.cloudfront.net/User(5)/website_media/image/107863--?Expires=1745581005&Signature=qM4N-kWb~cPUSz5KlvSDitZHr3TVGfxpDhbTZ-SDkaepPiuAG3fLoURfoIbPLnvGDy-ceGivzxcVoCq27OdwJXZF7B-ixbGZdL6ws6GcJD4Tq9u0qNvCZbQy~oT7eSajpxbEKbEobxuAgxTcM5boA1h5spsf1i8W~xGGdap9Y3hy5rpYofcy~QRX410aYrLSQ2PnixXuaSDPvg2TyhQ8YQeFUBhLrbmyI~7MJKKH9EYKpjbzy4N-h~KSBWeUNa8vhTdGvofl4kKEvnDzImiNpZxzMLCWGqsACJ3vCcDBz57WyKNNT8Qlg4dwu8n3LId6X33a8B7sC7~0IYO7xat8ag__&Key-Pair-Id=mcgrawhill_cloudfront_private_key) Chapter 6: Investment and Infrastructure ---------------------------------------- Infrastructure development has been a priority in the fiscal and public policy agenda of the Government of India. The capital expenditure (CAPEX) on key infrastructure sectors by the Government of India has grown at a rate of 38.8 percent from FY19-20 to FY23-24. Under phase 1 of the National Industrial Corridor Development Programme, a total of 383 plots covering 3788 acres have been allotted for industrial use. Around 2000 km of the railway network was commissioned between April and November 2024. The average container turnaround time in major seaports has reduced from around 48 hours to 30 hours between FY23-24 and FY24-25 (April-November). Around 5800 km of National Highways were constructed in FY24-25 (April-December).  The share of renewable energy in India’s total installed capacity is 47 percent. Successful implementation of government schemes like Pradhan Mantri Sahaj Bijli Har Ghar Yojana – SAUBHAGYA and the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) have ensured that electricity is being provided to 2.9 crore rural households. 5G services have been rolled out across all states and union territories by October 2024.  Under the Jal Jeevan Mission, over 12 crore families have gained access to piped drinking water since its launch. Under Phase II of the Swachh Bharat Mission-Grameen, from April to November 2024, 1.92 lakh villages were incrementally declared Open Defecation Free (ODF) Plus under the model category, taking the total number of ODF Plus villages to 3.64 lakh. Under the Pradhan Mantri Awas Yojana, over 89 lakh houses have been built in urban areas. Metro and rapid rail systems are operational or under construction in 29 cities, contributing to the growth of the city transportation network. With the successful implementation of the Real Estate (Regulation & Development) Act, 2016 over 1.38 lakh real estate projects have been registered by January 2025. ![](https://d3ol6uk36dipeb.cloudfront.net/User(5)/website_media/image/107864--?Expires=1745581005&Signature=BYsMb4xKeeeX8M1BwySQbSiOWgs16Wz9iCFMCINKTTbeSJZbRFbFxpFeooz6XIO4ZC-WbCD-wE~uOPhpi4zHYxxmtqqRXd80pSmB-LrF9H3o~3~Q6wCDhMYo-rFq4nmoqboR47fyvsIX5JQj8iCp0MhG9TeiC25laojZpewDr8U~CwvSCJTHoH5Pvjlv8kjiMMLtL0iXYBv4kNlvdcgba9Y38wR4EgeyVnhIggBoIyWd1gXhX4nf~RKUg0~-kerizO-CFKQvSywKHU2r6OObg2oaK6Y0CGFhy-OEwkbyWsqNcT4WmlObk8jnGABWYJpSFjv5T~Ia0qqesQ1aywW9Ng__&Key-Pair-Id=mcgrawhill_cloudfront_private_key) Chapter 8: Services  -------------------- The service sector’s contribution to total Gross Value Added (GVA) in India has increased from around 50 percent in FY13-14 to 55 percent in FY24-25. The average growth rate of the services sector in the post-pandemic period (FY22-23 to FY24-25) stood at 8.3 percent. With a share of 4.3 percent in global services exports in 2023, India ranked 7th worldwide. With a growth rate of 12.8 percent during FY12-13 to FY22-23, the share of information and computer-related services in the overall GVA increased from 6.3 percent to 10.9 percent. The tourism sector contributed 5 percent to the GDP in FY22-23. International tourist arrivals (ITAs) in India reached the pre-pandemic level in 2023. India’s ITAs share in World ITAs stands at 1.45 percent in 2023. With over 1.18 billion telephone subscribers and over 941 million broadband users, India stands as the 2nd largest telecommunications market. In India, there is a teledensity of 84 percent. There is growing emphasis on the ‘servicification of manufacturing,’ which means increasing utilization of services in various phases of manufacturing i.e., production and post-production value addition. This shows that the growth of the manufacturing sector has a significant impact on service sector growth, and vice versa. Also, the increasing adoption of artificial intelligence and digital technologies in manufacturing and service sector activities is changing the composition of demand for embedded services. Hence, the focus should be on the appropriate skilling of the labour force as this is the primary condition for progress in the service sector. ![](https://d3ol6uk36dipeb.cloudfront.net/User(5)/website_media/image/107865--?Expires=1745581005&Signature=llh7ZxiYgeiLjJ9F6Cktm~ysuWHz2sf6MSLdqqwfKXzYYCxvVmlFBoFzmrv3h38ZorbvGlkb6752XZCYxGgWs9VAiDfwqK0PNW0wxXfywcsoEVWymZUz508seNIb0~kGpeCOyG-owD0k3EN5JHN3eZu~BZA7hSgdH0E-vJNtQGa~F961ITqF9KyIrcOCAbL2iFxhtWQfXkbLmmQt2Qjx8b8g-4KZ4K9UCUSRag0IWFKdXqsK0QafGHiM6HNVfmTTf7gHhP7bBp2O9I2H1IAxyFfgz6mdA44UG-yEfbUxSsWNcB-YuSr5i8liFNqZI1KCTI6o7--jCmNAlZPwbSmwkg__&Key-Pair-Id=mcgrawhill_cloudfront_private_key) ## Chapter 9: Agriculture and Food Management India's agricultural sector remains a crucial pillar for economic growth and ensuring food security. The Agriculture and Allied Activities sector contributed around 16 percent of the country’s GDP for FY23-24. Kharif foodgrain production for 2024 reached around 1650 Lakh Metric Tonnes (LMT). The Minimum Support Price (MSP) for Arhar and Bajra for the FY24-25 has increased by 59 percent and 77 percent, respectively. In the Allied Activities sector, the Fisheries sector has shown the highest compounded annual growth rate (CAGR) of around 8.7 percent. It is followed by Livestock with a CAGR of around 8 percent. ![](https://d3ol6uk36dipeb.cloudfront.net/User(5)/website_media/image/107866--?Expires=1745581005&Signature=sHTXHdFBZPY6-ewDX1bK67hO9jGcxCy9S5u6Hv3qxhbFFH6VPZAI8yp6sFgaRAeogvqDlA2mRSnQULblqhewN7XikxDlpkvdNOkpxEdIK2Gu42ibpuITlXza~wNrTo1a~hhb9hBAR9iqjwc70bRcmD69wDgxpbdKSTBWyfnBg4GUlNUlZfkQ7ODT1MWrQGwIfRFpXR33pRCWRuIyxZQ5bb-3itI-1vUaGLM-~7DUfUFCcCmLsWftT8QWKA~SUcUu4irsKlAolxYIMmNz09RL1CflkJyHVQeIWsBNkLu6rBYL28SN-3PI9g~rk-N6CE8jHEKTV-a411PMdBDlRI5opg__&Key-Pair-Id=mcgrawhill_cloudfront_private_key) The food processing industry in India provides around 12 percent of total employment in the organized sector. In the fiscal year FY23-24, the value of agri-food exports reached USD 46 billion, constituting around 11.7 percent of India’s total exports. To promote growth in this sector, the Indian government is implementing the Pradhan Mantri Kisan Sampada Yojana (PMKSY). However, issues like climate change and water scarcity pose significant challenges to the agriculture and allied activities sector, which requires targeted and focused interventions. It is crucial to promote agricultural production practices that are coordinated with the specific agro-climatic conditions and natural resource availabilities of different regions across the country. As a long-term strategy, investment should be made in research and development, diversification should be made in climate-resilient and high-yield crops, micro-irrigation should be implemented and digital technologies should be adopted in agriculture. Chapter 10: Climate & Environment --------------------------------- India has committed to achieving a long-term goal of net-zero emissions by 2070. Net zero is a state where the greenhouse gases going into the atmosphere are balanced by their removal out of the atmosphere. This can be done by reducing the emission and absorbing the emission by natural processes (e.g., developing forests as carbon sinks) and by using other greenhouse gases removal technologies. Along with this, India has also set the goal of becoming a developed nation by 2047. Realizing both these goals requires a delicate balance which on one hand involves achieving low-carbon development while on the other hand it has to be ensured that basic concerns such as affordable energy security, job creation and sustained economic expansion are met. To navigate this dual challenge, India is adopting a comprehensive growth strategy that involves both mitigation and adaptation. **Mitigation** focuses on addressing the root causes of climate change by reducing greenhouse gas emissions. **Adaptation** seeks to minimize the adverse impacts of climate change through a robust framework for resilience. Various measures have been taken in this direction by the Government of India. Under the Mission Lifestyle for Environment (LiFE), the goal is for at least 80 percent of all villages and urban local bodies to become environmentally friendly by 2028. India has an installed electricity generation capacity of 2.13 lakhs megawatts from non-fossil fuel sources, which accounts for around 47 percent of the total capacity as of November 2024. As per the report titled ‘Forest Survey of India 2024’, between 2005 and 2023, an additional carbon sink of 2.3 billion tonnes of CO2 equivalent has been created.  Chapter 11: Social Sector ------------------------- The social services expenditure by the Central and State governments together increased at a CAGR of 15 percent from FY20-21 to FY24-25. Gini coefficient (GI) is a measure of inequality in consumption expenditure. It declined for rural areas from 0.266 in FY22-23 to 0.237 in FY23-24. For urban areas, it declined from 0.314 in FY22-23 to 0.284 in FY23-24.  With the National Education Policy (NEP) 2020 India aims to achieve 100 percent Gross Enrolment Ratio (GER) by 2030. At the primary level, the GER is ~93 percent, at the secondary level it is ~77 percent and at the higher secondary level it is ~56 percent. School dropout rates have declined to 1.9 percent at the primary level, 5.2 percent at the upper primary level, and 14.1 percent at the secondary level. Between 2014-15 to 2021-22, the GER for the 18–23 age group increased from 23.7 percent to 28.4 percent. The number of Indian Institutes of Technology (IITs) increased from 16 to 23 between 2014 to 2023, while the number of Indian Institutes of Management (IIMs) increased from 13 to 20 in this period. Between FY14-15 and FY21-22, the financial burden on the households due to health expenditure was reduced. In this period, the Government’s health expenditure increased from 29 percent to 48 percent and the share of out-of-pocket expenditure in total health expenditure declined from 62 percent to 39 percent. In 2018, NITI Aayog released a National Strategy for Artificial Intelligence (AI), which emphasized how AI combined with the Internet of Medical Things (IoMT) and robotics can potentially help the Government of India in achieving universal health for all. Adoption of AI can improve the quality of medical devices, help reduce drug delivery and discovery costs, and enable real-time monitoring of remote patients. Regulatory institutions in the areas of health and education must constantly balance the ease of provision of such services by the providers and the needs of society. These regulatory institutions should focus on achieving outcomes without being fixated on inputs with emphasis on trust-based regulation (which is backed up by disclosure and transparency). Chapter 12: Employment and Skill Development -------------------------------------------- India has seen good growth in employment in recent years, along with increased formalisation of the economy. The unemployment rate in India declined from 6 percent in 2017-18 (July-June) to 3.2 percent in 2023-24 (July-June). In the past six years, the net payroll additions under the Employees’ Provident Fund Organisation (EPFO) have more than doubled, indicating a healthy growth in formal employment. Reasons for these improvements can be attributed to achievements in skill development, entrepreneurship, and the transformation of the regulatory framework. Under the National Apprenticeship Promotion Scheme (NAPS), women’s participation has increased from 7.7 percent in 2016-17 to 22.8 percent in 2024-25. In the Industrial Training Institutes (ITIs) and National Skill Training Institutes (NSTIs), women's participation has increased from 9.8 percent in 2015-16 to 13.3 percent in 2023-24. However, there is still a lot of scope for improvement as the labour laws intended to protect the rights of women workers have generally discouraged hiring by creating barriers to their entry into the workforce. The government of India has made an attempt to address these concerns through new Labour Codes which prohibit gender discrimination in recruitment; enable night shifts for women with safety measures; and ensure equality in payment. Other measures include extending 26 weeks of maternity leave to informal workers and mandating creche facilities in workplaces that have 50 or more employees. Hopefully, these reforms will promote workplace safety, gender inclusivity, and social security for women. India has a demographic advantage with around 26 percent of the population falling in the age group of 10-24 years. To fully utilise this demographic dividend, priority should be given to reskilling and upskilling to align the workforce with global demands, enhancing employability at both domestic and international level.  Chapter 13: Labour in the AI Era -------------------------------- The rise of Generative AI has triggered an ‘AI race’ between many companies and countiries. Many big tech companies are rapidly scaling their AI capabilties to tap into the potential of Generative AI. Between 2021 and 2022, the number of AI patents granted globally increased by 62.7 per cent to over 62,000. The annual global private investments in Generative AI increased from around USD 3 billion in 2022 to USD 25 billion in 2023. Between 2021 and 2023, global corporate investments in all types of AI were USD 760 billion. At present, the labour markets are shifting in anticipation of the impact of AI. Thus, policymakers should not dismiss the adverse effects of AI as exaggerated, rather they should maintain a constant vigil and take timely action. To grab the opportunity that lies ahead, India should focus on capacity and institution building.