Finance Minister Nirmala Sitharaman today presented the Economic Survey 2024-25 in the Lok Sabha, ahead of the Union Budget 2025-26. This document, a product of India’s Chief Economic Advisor V Anantha Nageswaran, gives an overview of the economic performance of the country till now and how it is expected to fare in the ensuing fiscal year.
According to the Economic Survey, India’s GDP is projected to grow by between 6.3% and 6.8% in the fiscal year 2025-26. This projection aligns closely with the government’s official first advance estimate of 6.4%, highlighting the country’s resilience despite the ongoing challenges in the global economy.
The Survey is optimistic in tone and suggests that India’s economy is on course to be one of the world’s fastest-growing for a long time. Economic projections put forth indicate the strength and adaptability of the nation as it continues on its growth path charted even in the face of uncertainties worldwide.
Infrastructure and Rural Development
Forthcoming Budget is expected to be the one of Finance Minister Sitharaman, working on an economic growth model with considerable focus during her tenure, built particularly on the infrastructure and rural development sectors. The government has policies with reform initiatives to create sustainable and enduring growth and development. This is expected to be achieved with extensive changes-mostly in terms of slabs in income tax-and much higher infrastructural, rural, and education allocations.
The Economic Survey has highlighted the government’s strong emphasis on infrastructure. Capital expenditure on major infrastructure projects has risen by 38.8% from FY20 to FY24, which underscores the importance the government places on creating lasting infrastructure that will drive India’s future growth. These investments are expected to provide a foundation for the country’s economic performance, particularly in areas like transportation, energy, and urban development.
India Leads the Global IPO Market
Another important highlight of the Economic Survey is the impressive performance of India in the global IPO market. India’s share of global IPO listings skyrocketed from 17% in 2023 to a dominant 30% in 2024. This is an incredible feat that puts India at the top of the global list for primary resource mobilization.
However, this success was due to growth in investor confidence boosted by the effectiveness of the country in profitability, digital infrastructure, and significant economic reforms. Indian stock markets performed very well over the last decade with a compounded annual growth rate of 8.8% in Nifty 50. Though this is lower than the performance of US NASDAQ at 15.3%, it outperformed China’s Shanghai Composite that posted just 3.2%.
India’s rising share in the MSCI-EM index, which hit a record high of 20% in July 2024 before settling at 19.4% by December, emphasizes how Indian markets are becoming highly attractive worldwide. India has now taken the third position, after only China and Taiwan, showing its rising global economic influence.
The government’s commitment to long-term growth and infrastructure development.
This budget also highlights the government’s undeterred commitment to large-scale infrastructure projects. The capital expenditure for such sectors has grown at an astonishing rate of 38.8% between FY20 and FY24, reflecting the government’s focus on laying groundwork for long-term growth in the economy.
Infrastructure projects such as highways, railways, and airports, that are either underway or slated for the near future, are going to contribute immensely to improving India’s economic performance. Infrastructure is part of a larger set of initiatives aimed at creating jobs, improving connectivity, and bringing in private investment, which would ensure growth is sustained across a host of sectors.
Roadmap for Continued Economic Growth
This Economic Survey charts the future approach for the Union Budget 2025-26. As per the plan of the government, structural reforms that support sustaining economic growth are to be continued. Infrastructure shall remain a high priority item, and apart from infrastructure, the survey calls for reform in manufacturing, agriculture, and services sectors so that growth is remained with all sectors on an equal footing.
The overall outlook for the next fiscal is optimistic with strong GDP growth and continued growth in the key sectors, but global economic uncertainty will continue to pose a challenge for the government to push forward with further policy reforms for the long-term sustainability of Indian growth.
Union Budget Expectations
All eyes will now be on Finance Minister Nirmala Sitharaman, as she gears up to present the Union Budget 2025-26, which is eagerly awaited for its far-reaching reforms. Income tax amendments, funding in rural development, education, and infrastructure would top the agenda. The Economic Survey gives an insight into what the government thinks are its priorities and will lead to the Budget that builds upon what has been achieved so far.
All said and done, the Economic Survey 2024-25 puts together a whole view of how India is placed in terms of its current performance and what awaits it. Considering the GDP growth projection of between 6.3% to 6.8%, accompanied by infrastructure building and reforms, the Indian government is all set to keep growing the economy with its efforts over the next years.
