Economic Survey 2025: A Roadmap for Recovery

Discover the insights of the Economic Survey 2025. Explore trends, forecasts, and analyses that shape the future of our economy. Stay informed and prepared!

Friday, 31 January 2025

Trending News Fox, Digital Desk Team, Kolkata

Edited by Saibal Bose

Economic Survey 2025: A Roadmap for Recovery

The Economic Survey 2025 was recently tabled in Parliament. It presents a cautiously optimistic outlook for India’s economy. It projects a growth rate of 6.5% to 7% for the fiscal year 2024-25. This forecast underscores the nation’s resilience amid global uncertainties and outlines a strategic roadmap for sustained recovery and inclusive development.

Economic Survey 2025: Economic Growth and Projections

The Survey highlights India’s robust post-pandemic recovery. It notes that the real GDP in FY24 was 20% higher than the pre-COVID level of FY20. This significant rebound is attributed to strong domestic growth drivers, improved balance sheets, and a surge in private investment.he Reserve Bank of India has projected a 7.2% GDP growth for the fiscal year ending March 2025, aligning with the Survey’s conservative estimate of 6.5% to 7%.

The Survey cautions that sustaining this momentum requires addressing several challenges. These challenges include global geopolitical tensions, supply chain disruptions, and climate change impacts. It stresses the importance of cooperation among the Union Government, State Governments, and the private sector. This collaboration aims to achieve a sustained growth rate exceeding 7% in the medium term.

Economic Survey 2025: Employment and Workforce Development

Addressing employment, the Survey underscores the necessity of generating approximately 7.85 million non-farm jobs annually until 2030 to accommodate the rising workforce. The services sector remains a major job creator. The construction sector has gained prominence. This growth is partly due to the government’s infrastructure push. Yet, many construction jobs are informal and low-paid, highlighting the need for more formal employment opportunities.

The manufacturing sector has shown signs of recovery since 2021-22. This recovery follows a decade of subdued job creation linked to legacy issues like bad loans. The Survey also points out that about half of Indian graduates are not instantly employable, indicating a significant skills gap. It calls for enhanced efforts in skill development. Education must be prioritized to improve employability and meet the demands of a dynamic economy.

Economic Survey 2025: Inflation and Fiscal Insights

In the inflation front, the Survey reports a decline in retail inflation to 5.4% in FY24 from 6.7% in FY23, attributing this to effective administrative and monetary policies. Yet, core inflation remains sticky due to services inflation and a strong labor market, especially in Asia. The Survey suggests focused efforts to increase the production of major oilseeds.

It also encourages exploring non-conventional oils. This approach aims to guarantee long-term price stability. Fiscal prudence is a priority. The government emphasizes capital expenditure. Strong private investment contributes to a 9% real-term growth in Gross Fixed Capital Formation in 2023-24. The current account deficit improved to 0.7% of GDP in FY24 from 2.0% in FY23, aided by strong services exports despite subdued global demand for goods.

Economic Survey 2025: Addressing Inequality

The Survey acknowledges persistent income inequality. It notes that the top 1% of Indians earn 6-7% of total incomes. Meanwhile, the top 10% account for one-third. The government focuses on job creation to tackle this. It also integrates the informal sector into the formal economy. Additionally, it increases female labor force participation. These measures aim to promote inclusive growth and reduce disparities.

Economic Survey 2025: Global Context and Future Outlook

In the global context, the United Nations forecasts a subdued 2.8% global economic growth in 2025, after resilience against conflicts and inflation. Strong performances from economies like India, China, and the United States contribute to this outlook. Yet, the global recovery remains uneven and concentrated in large economies, with overall poverty reduction continuing, particularly in Asia.

The Economic Survey 2025 emphasizes that while India’s economic trajectory is positive, sustaining growth requires concerted efforts across various sectors. It calls for policy measures to enhance productivity, encourage innovation, and build a resilient infrastructure capable of withstanding global challenges. The roadmap outlined in the Survey seeks to navigate the complexities of the global economic environment.

It aims to foster inclusive and sustainable development within the country. In conclusion, the Economic Survey 2025 provides a comprehensive analysis of India’s economic landscape. It highlights achievements and identifies areas requiring attention. It serves as a crucial document. The Survey guides policymakers, stakeholders, and the public in understanding the current economic scenario. It outlines strategies proposed for a resilient and inclusive recovery.

Global Economic Outlook for 2025: Key Projections and Challenges