Economic Survey

India Economic Survey 2024-25

Amrit Kaal: Sustaining Growth Momentum

GDP Growth (Actual)

7.2%

Forecast: 6.5-7.0%

Inflation (CPI)

5.4%

Consumer Price Index

Wholesale Inflation (WPI)

-0.7%

Wholesale Price Index

Fiscal Deficit

4.8% GDP

Union Budget (Revised Estimate)

Key Theme

Amrit Kaal: Sustaining Growth Momentum

Key Highlights

GDP growth of 7.2% in FY24, among highest globally
CPI inflation moderated to 5.4% from 6.7% in FY23
Fiscal deficit reduced to 5.6% of GDP
Current account deficit narrowed to 0.7% of GDP
Foreign exchange reserves at $655 billion
PLI schemes driving manufacturing renaissance
UPI transactions crossed 13 billion per month
Capex increased by 28.2% over FY23
Agriculture grew at 1.4% despite erratic monsoon
Services sector growth robust at 7.6%

Policy Recommendations

1 Pursue fiscal deficit target of 5.1% for FY25
2 Boost private investment through regulatory simplification
3 Scale up skilling initiatives for demographic dividend
4 Strengthen agricultural value chains and reduce wastage
5 Accelerate energy transition while ensuring energy security
6 Enhance social protection coverage and targeting
7 Promote innovation through R&D incentives
8 Deepen capital markets for long-term financing
9 Strengthen disaster resilience and climate adaptation
10 Continue trade diversification and FTA negotiations

Survey Predictions vs Budget Outcomes

Comparison between Economic Survey predictions and actual Union Budget allocations

Metric	Survey Prediction	Actual Budget	Deviation
GDP Growth (%)	6.5-7.0	7.2 (actual)	Above range
Fiscal Deficit (% of GDP)	5.3	5.1	-0.2%
CPI Inflation (%)	5.1	5.4 (actual)	+0.3%
Capex (Rs Lakh Cr)	10.0	11.1	+Rs 1.1 Lakh Cr

Union Budget 2024-25 Summary

Corresponding budget data to read alongside the Economic Survey Revised Estimate

Total Receipts

46.33 lakh crore

Total Expenditure

46.33 lakh crore

Fiscal Deficit

13.94 lakh crore

Revenue Deficit

4.63 lakh crore

View Union Budget 2024-25 in detail

Detailed Analysis

The Economic Survey 2024-25 was tabled in Parliament on July 22, 2024, ahead of the full Union Budget for FY25. The Survey, authored under the guidance of Chief Economic Adviser V. Anantha Nageswaran, provides a detailed assessment of the Indian economy's performance in FY24 and the prospects for FY25. The headline story of the Survey is India's strong GDP growth of 7.2% in FY24, marking the third consecutive year of growth above 7%. This achievement is particularly noteworthy given the challenging global environment characterised by geopolitical conflicts, supply chain disruptions, and tight monetary conditions globally. The Survey attributes this robust performance to multiple factors: strong government capital expenditure which grew by 28.2% over FY23, a revival in private consumption, improving corporate balance sheets, and a resilient services sector that grew at 7.6%. On the inflation front, the Survey highlights the significant moderation in CPI inflation from 6.7% in FY23 to 5.4% in FY24. The RBI's proactive monetary policy, combined with government supply-side interventions including open market operations in pulses and cereals, helped manage price pressures effectively. The external sector chapter presents an optimistic picture with the current account deficit narrowing to 0.7% of GDP, supported by robust services exports and remittance inflows. Foreign exchange reserves reached $655 billion, providing comfortable import cover. The Survey devotes considerable attention to the transformation of India's digital economy. UPI transactions crossing 13 billion per month represent a paradigm shift in financial inclusion and the formalisation of the economy. The Aadhaar-based Direct Benefit Transfer system has saved over Rs 3.5 lakh crore through leakage prevention. The PLI schemes receive detailed analysis, with the Survey noting their role in attracting investment across 14 sectors. Mobile phone manufacturing has emerged as a major success story, with India becoming the world's second-largest manufacturer. On the employment front, the Survey notes improvements in labour market indicators, with the unemployment rate declining and the labour force participation rate increasing. However, it emphasises the need for continued focus on quality job creation, particularly in the manufacturing sector. The Survey recommends a growth strategy centered on four pillars: fiscal prudence with quality expenditure, investment-led growth, manufacturing scale-up, and inclusive development. It projects GDP growth of 6.5-7.0% for FY25, contingent on normal monsoons and a stable global environment.

Source: Official Economic Survey Document

Previous Survey

Economic Survey 2023-24

Amrit Kaal: Building the Foundation

Next Survey

Economic Survey 2025-26

Building Resilience in a Changing World

Budget follows the Economic Survey

The Economic Survey sets the context for the Union Budget presented the next day

View Union Budget 2024-25 →