Economic Survey 2024-25

1.Economic Survey 2024-25: India’s GDP growth estimated at 6.4% in 2024-25, projected to grow between 6.3%-6.8% in 2025-26, according to the ES 2024-25.

• About the Key Highlights of the ES: Prepared by the Department of Economic Affairs, under the guidance of the Chief Economic Advisor (CEA).
• Real GDP Growth: Estimated at 6.4% (FY25) and expected between 6.3% - 6.8% (FY26)
• Private Final Consumption Expenditure (PFCE): Share in GDP (current prices) is set to increase from 60.3% (FY24) to 61.8% (FY25), the highest since FY03.
• Gross Value Added (GVA): Growth remains close to the decadal average, and Aggregate GVA has surpassed pre-pandemic trends.
• Inflation: Headline inflation is moderating due to core inflation decline.

o Food inflation increased from 7.5% (FY24) to 8.4% (FY25) due to supply chain disruptions and weather conditions.

o If vegetables and pulses are excluded, inflation is close to the 4% target.

• Employment: Labour market growth supported by post-pandemic recovery and increased formalization.

o  LFS report (2023-24) shows improvement in Unemployment rate, Labour force participation rate, and Worker-to-population ratio (WPR).

• Survey’s Recommendations: Deregulation of the economy is essential to unleash growth.

o Boosting employment and income generation will lead to higher consumption.

o Simplification of regulations will reduce business costs and improve hiring.

• Business Reform Action Plan (BRAP) highlights a positive link between business reforms and industrial activity.
• Constitutional Mandates: The term Economic Survey is not mentioned in the Constitution.

o The Economic Survey is not binding on the government. Article 112 of the Constitution refers to the budget.

o The term "budget" is not used in the Constitution; instead, it is called the "Annual Financial Statement".