Introduction
The Economic Survey 2025, tabled in Parliament ahead of the Union Budget, offers a detailed assessment of India’s economic performance in FY 2024–25 and sets the stage for future policy direction. Authored by the Chief Economic Adviser (CEA) to the Government of India, the Survey acts as the official economic report card of the nation, reflecting macroeconomic trends, policy impacts, structural reforms, and challenges.
Let’s explore the key highlights, sectoral insights, reforms, and projections from the Economic Survey 2025.
Historical Context of the Economic Survey
The Economic Survey of India dates back to 1950–51, and since 1964, it has been presented separately from the Union Budget. It has evolved from being a mere data compendium to a visionary document that outlines strategic policy recommendations.
Over the years, Economic Surveys have introduced impactful ideas such as:
- JAM Trinity (Jan Dhan, Aadhaar, Mobile)
- Universal Basic Income (UBI) proposal
- Thalinomics
- Wealth Creation through Markets
Economic Survey 2025 builds on these legacies, emphasizing inclusive growth, green development, and digital acceleration.
What is the Economic Survey?
The Economic Survey is an annual document presented by the Ministry of Finance, usually one day before the Union Budget. It provides a comprehensive review of:
- Economic development over the past year
- Sector-wise performance (agriculture, industry, services, etc.)
- Fiscal and monetary policy assessments
- Future economic outlook
- Suggestions for reforms and policy directions
Theme of Economic Survey 2025
Theme:
“Accelerating Inclusive Growth in the Amrit Kaal”
The 2025 Survey focuses on sustaining economic momentum, job creation, rural transformation, and green growth as India navigates the Amrit Kaal (25-year period leading to 2047, India’s centenary of independence).
Key Highlights at a Glance
| Indicator | Value / Trend (FY 2024–25) |
|---|---|
| Real GDP Growth | Estimated at 7.2% |
| Nominal GDP Growth | Around 11.2% |
| Inflation (CPI) | Moderated to 5.1% |
| Fiscal Deficit | Targeted at 5.6% of GDP |
| Current Account Deficit (CAD) | Narrowed to 1.1% of GDP |
| Forex Reserves | Over $640 billion |
| Agriculture Growth | 3.6% |
| Industrial Growth (IIP) | 5.8% |
| Services Sector Growth | 8.1% |
| Unemployment Rate (PLFS) | Reduced to 5.8% |
| Capex by Centre | Reached ₹11.5 lakh crore |
Sector-Wise Performance
Agriculture
- Growth at 3.6% supported by good monsoon and MSP reforms
- Boost from schemes like PM-KISAN, Agriculture Infrastructure Fund, and e-NAM expansion
- Focus on climate-resilient farming and agri-tech startups
Industry
- Industrial output grew 5.8% with strong performance in manufacturing and mining
- PLI Schemes (Production Linked Incentives) boosted electronics and textiles
- MSMEs benefited from credit support via CGTMSE and ECLGS
Services
- Services grew at 8.1%, led by IT, finance, hospitality, and logistics
- Tourism and aviation sectors rebounded strongly post-pandemic
- India’s digital public infrastructure (like UPI and ONDC) continues to power fintech expansion
State-Wise Economic Performance
Leading States by GSDP Growth (FY 2024–25)
| State | GSDP Growth (%) | Key Drivers |
|---|---|---|
| Gujarat | 8.4% | Manufacturing, Ports, Petrochemicals |
| Karnataka | 8.2% | IT/ITES, Electronics, Startups |
| Maharashtra | 7.9% | Finance, Services, Auto, Pharma |
| Tamil Nadu | 7.7% | Textiles, Electronics, MSMEs |
| Uttar Pradesh | 7.5% | Infrastructure, Agri-sector, Exports |
Fiscal Developments
| Indicator | FY 2024–25 Estimate |
|---|---|
| Gross Tax Revenue | ₹38.8 lakh crore |
| Non-Tax Revenue | ₹3.2 lakh crore |
| Capital Expenditure | ₹11.5 lakh crore |
| Revenue Deficit | 2.8% of GDP |
| Fiscal Deficit Target | 5.6% of GDP |
| Public Debt | ~82% of GDP |
Observations:
- Capex push continues to be the cornerstone of growth strategy.
- Robust GST collections indicate strong formalization and consumption revival.
External Sector Performance
- Exports:
- Witnessed marginal decline due to global slowdown but service exports remained robust
- Imports:
- Declined slightly due to lower crude prices
- CAD:
- Improved to 1.1% of GDP
- Remittances:
- Hit record high of $112 billion, supporting BoP
Digital Economy & Innovation
The Survey emphasizes India’s digital public infrastructure (DPI) as a unique global model driving transparency, financial inclusion, and service delivery.
Key Highlights:
- UPI transactions crossed ₹20 lakh crore/month
- ONDC gained momentum in democratizing e-commerce
- Growth in AI/ML startups, quantum computing, and fintech
- Aadhaar-enabled DBT savings exceeded ₹3.2 lakh crore
The Digital Personal Data Protection Act 2023 and India AI Mission are pivotal in shaping a secure, AI-ready digital economy.
Rural Economy & Welfare
The rural sector has been pivotal in India’s post-pandemic recovery, with continued government investment in housing, water, jobs, and farming infrastructure.
Rural Sector Highlights:
Global Comparisons
| Indicator | India (2024–25) | China | USA | Global Avg |
|---|---|---|---|---|
| Real GDP Growth | 7.2% | 4.8% | 2.1% | 2.9% |
| Inflation Rate | 5.1% | 1.7% | 3.2% | 4.2% |
| Fiscal Deficit (% of GDP) | 5.6% | 3.5% | 6.3% | ~5% |
| Unemployment Rate | 5.8% | 5.2% | 3.7% | ~6% |
India remains one of the fastest-growing major economies in the world, attracting record FDI and growing influence in global supply chains.
Inflation and Monetary Policy
- CPI Inflation cooled to 5.1%, aided by food price moderation and calibrated RBI policies
- RBI maintained repo rate at 6.5% for most of the fiscal, balancing growth and inflation
Tax Reforms and Revenue Mobilization
The Survey appreciated the impact of technology-led tax reforms, leading to better compliance and buoyancy.
Major Taxation Developments:
- GST collections crossed ₹1.65 lakh crore/month regularly
- Improved direct tax-to-GDP ratio (now at 6.3%)
- Faceless assessment system improved taxpayer satisfaction
- Corporate tax reforms (new manufacturing units taxed at 15%)
- Reduction in tax litigation via Vivad Se Vishwas scheme
Employment Trends and Labour Reforms
- Unemployment fell to 5.8% (urban: 6.2%, rural: 5.4%)
- Women Labour Force Participation Rate (LFPR) improved to 34.6%
- Gig economy employment grew by 15% YoY
- Formalisation increased via EPFO, ESIC, and e-Shram
Key Reforms:
- Implementation roadmap of 4 Labour Codes in progress
- Emphasis on reskilling and upskilling under Skill India Digital Platform
- Boost to rural jobs via MGNREGA and PM Vishwakarma Yojana
Key Structural Reforms Highlighted
- Rollout of Digital Public Infrastructure 2.0 (AI, UPI, data governance)
- Progress in Labour Code implementation
- Land digitization under SVAMITVA Yojana
- Push for Green Hydrogen Mission and EV ecosystem
- Investment in urban infrastructure under AMRUT 2.0 and Smart Cities
Focus on Sustainability
| Initiative | Impact |
|---|---|
| National Green Hydrogen Mission | India as global hub for green hydrogen |
| Solar Energy under PM-KUSUM | Enhancing farm sustainability |
| Ethanol Blending (20% target) | Reduced import dependence |
| Energy Transition Programs | Boost to renewable capacity |
Social Indicators
- Education:
- NEP 2020 implementation saw rise in digital and vocational education
- Health:
- Ayushman Bharat coverage expanded; increased telemedicine adoption
- Poverty Reduction:
- Estimated decline in multidimensional poverty by 5.3%
Growth Outlook
FY 2025–26 Projections:
- Real GDP Growth: 7.0–7.3%
- Inflation:
- Expected around 4.8–5.2%
- Fiscal Deficit:
- Targeted to reduce below 5.2% of GDP
The Survey maintains a “cautiously optimistic” tone, citing global risks like oil volatility, geopolitical tensions, and El Niño impacts.
India’s Role in the Global Economy
The Economic Survey 2025 also emphasizes India’s rising stature as:
- The president of G20 in 2023 and its continuing leadership on global finance and digital governance
- A trusted trade partner through FTAs with UAE, Australia, and ongoing talks with UK and EU
- A resilient and reliable supply chain hub through initiatives like PLI, Make in India, and Atmanirbhar Bharat
Climate and Green Economy Focus
The Survey outlines India’s roadmap to become net-zero by 2070, with multiple intermediate goals.
Major Green Initiatives:
- PM-PRANAM and GOBARdhan Yojana for sustainable agriculture
- Electric Vehicle penetration hit 6.8% of total new sales
- Green Credit Programme launched to incentivize eco-conscious businesses
- Over 40% of total power capacity from renewables
- Expansion of solar parks and green hydrogen hubs
Challenges Highlighted
- Uneven rural recovery
- Private sector capex still lagging
- High youth unemployment and skill mismatch
- Credit stress in MSME segment
- Global demand headwinds and geopolitical risks
Recommendations from the Survey
- Increase public-private partnerships (PPPs) in infra and logistics
- Encourage green finance and ESG investments
- Focus on skilling for Industry 4.0
- Improve urban governance and land markets
- Strengthen cooperative federalism through fiscal decentralization
ECONOMIC SURVEY 2025 in Points
Theme: Accelerating Inclusive Growth in the Amrit Kaal
- Key Figures
- GDP Growth: 7.2%
- Inflation: 5.1%
- Fiscal Deficit: 5.6% of GDP
- Forex Reserves: $640+ Billion
- Sectoral Growth
- Agriculture: 3.6%
- Industry: 5.8%
- Services: 8.1%
- External Sector
- CAD: 1.1% of GDP
- Remittances: $112 Billion
- FDI: Strong inflows into manufacturing & startups
- Innovation & Digital
- UPI: ₹20 L Cr/month
- DPI 2.0 launched
- ONDC, AI Mission, Digital Skilling push
- Sustainability
- 40%+ power from renewables
- Green Hydrogen & EVs expanding
- National Green Credit Programme
- Challenges
- Uneven recovery
- Youth unemployment
- Global volatility
- Execution bottlenecks
- Outlook
- GDP Growth 2025–26: 7.0–7.3%
- Continued Capex Push
- Focus on Inclusion, Green Growth & Jobs
Conclusion
The Economic Survey 2025 reflects India’s strong macroeconomic fundamentals, proactive policy stance, and reform orientation. It recognizes both the resilience and challenges of the Indian economy in a complex global environment.
With continued focus on inclusive, sustainable, and tech-driven growth, the Survey sets a positive tone for the Union Budget 2025 and the country’s medium-term economic trajectory.
FAQs on Economic Survey 2025
Q1. Who prepares the Economic Survey?
The Chief Economic Adviser and the Economic Division of the Ministry of Finance.
Q2. When is the Economic Survey 2025 presented?
It was tabled in Parliament on January 31, 2025, one day before the Union Budget.
Q3. What is India’s projected GDP growth for FY 2025–26?
It is projected at 7.0–7.3%.
Q4. What is the theme of the Economic Survey 2025?
“Accelerating Inclusive Growth in the Amrit Kaal.”
Q5. Is the Economic Survey binding on the government?
No, it is an advisory document and not binding on policymaking.
