Economic Survey 2025: Key Insights and Expectations
The Union Finance Minister, Nirmala Sitharaman, is set to present the Economic Survey 2024-2025 in Parliament on January 31, 2025. This follows the commencement of the Budget session, which will begin with an address by President Droupadi Murmu to both Houses of Parliament. The Economic Survey provides an assessment of the country’s economic performance over the past financial year and outlines expectations for the coming year.
At the beginning of 2024, India was projected to maintain strong economic growth, with expectations of reaching a $4 trillion economy by 2024-25. The nation remained one of the fastest-growing economies, with projections indicating it could become the world’s third-largest economy by 2027. The economy was estimated to grow at a robust 7% rate.
According to a United Nations report, India’s economy is expected to expand by 6.6% in 2025. This growth is largely driven by private consumption and increased investment. The report also highlighted that South Asia’s overall economic outlook remains strong, mainly due to India’s positive performance. The Indian economy recorded a 6.8% growth rate in 2024, with a similar forecast for 2026.
Inflation is expected to play a critical role in shaping economic policies in 2025. While the first half of 2024 saw significant growth, the latter half was more challenging, leading to debates between the Reserve Bank of India (RBI) and the Finance Ministry regarding inflationary pressures and slower economic momentum. Rising inflation trends could influence policy decisions in the coming months.
The Budget session, beginning on January 31, 2025, will outline financial plans for the fiscal year 2025-26. Following the President’s address, Finance Minister Nirmala Sitharaman will present the Economic Survey in both the Lok Sabha and Rajya Sabha. This document will offer a detailed analysis of economic progress and highlight areas requiring policy interventions.
A key concern for policymakers is how to maintain growth momentum while managing economic uncertainties. The slowdown in GDP growth, despite increasing capital expenditure in various budgetary allocations, has raised concerns. The Economic Survey is expected to address these issues and suggest measures to stabilize growth and investment.
The upcoming Union Budget, scheduled for presentation on February 1, 2025, will provide clarity on the government’s fiscal strategies. The Budget session is planned in two phases—January 31 to February 13, followed by a second session from March 10 to April 4. The Finance Minister will deliver the Budget speech in the Lok Sabha at 11 a.m. on February 1, outlining key allocations and revenue expectations for the next financial year.
The Economic Survey and Budget will be closely watched for insights into India’s economic resilience, growth strategies, and measures to address inflationary concerns. As the country aims for long-term economic stability, these discussions will be pivotal in shaping the financial roadmap for 2025-26.