Priyanka Tiwari
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Union Finance Minister Nirmala Sitharaman delivered the Economic Survey 2024-25 before Parliament on Friday while outlining both economic performance results and predictions for the upcoming Union Budget. Research within the survey indicates the Indian economy will grow between 6.3% and 6.8% during the period of FY26.
Economic Growth and Stability
The survey points to solid economic foundations which include a healthy external balance together with steady private demand and progressing fiscal management. The economy will sustain its steady growth trajectory during the upcoming fiscal year due to these factors.
Inflation Trends and Risks
Food inflation will decrease during Q4 FY25 because of usual vegetable price drops and when Kharif harvests arrive this year.
What is projected for Rabi harvesting is a stabilizing effect on early FY26 food prices.
The potential risks to inflation stem from adverse weather conditions together with increasing international agricultural prices.
Global Factors and Inflation Outlook
Core inflation remains stable because prices of energy and commodities have become less expensive.
External political disturbances and economic instabilities affect the forecasted economic trends for India.
Foreign Exchange Reserves and Capital Flow Stability
India maintains strong foreign exchange reserves that cover 90% of external debt at the same time offering more than ten months of import protection.
The foreign exchange reserves underwent a considerable growth from $616.7 billion (January 2024) to $704.9 billion (September 2024) before returning to $634.6 billion (January 3, 2025).
External economic strength receives important backing from consistent capital inflows.
Employment Growth in the Formal Sector
Expansion in the formal employment sector has occurred to a substantial degree.
The Employment Provident Fund Organization recorded an exceptional increase in its subscription rate which surged from 61 lakh in FY19 to 131 lakh in FY24 as evidence of robust job establishment across the nation.
Economic Survey: Background and Significance
According to custom the Economic Survey received its presentation from Finance Minister Sitharaman before the Union Budget (2025-26) took place. The Economic Division of the Department of Economic Affairs developed a document which reveals India's current and future economic state.
The Economic Survey operates as an important tool which previews the upcoming Union Budget by providing economic insights with policy guideposts.
Historical Perspective
The budgetary documents included their initial Economic Survey during the 1950-51 financial year.
During the 1960s the government removed Economic Survey from its association with the Budget before establishing it as an independent presentation that precedes the Union Budget.
Every year the survey chooses one theme which guides its primary content.
2022: "Agile Approach" – India's economic response to COVID-19.
2023: "Recovery Complete" – Post-pandemic recovery from global disruptions.
2024: Focused on economic resilience.
The research includes sectoral evaluations along with freshly identified topics that handle recent economic issues.
The Economic Survey presents vital economic direction for the nation before guiding the formation of expectations regarding the Union Budget 2025-26.
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