The Economic Survey 2023-24 projects India’s GDP growth for the fiscal year 2024-25 to be in the range of 6.5% to 7%. To maintain this economic momentum, the survey emphasizes the importance of continued private sector investment. Finance Minister Nirmala Sitharaman presented the survey in Parliament on Monday, noting that the country is expected to face various geopolitical challenges in the upcoming decades. The Reserve Bank of India forecasts headline inflation to be 4.5% in FY25 and 4.1% in FY26. Despite strong growth in private capital formation over the past three years, the survey suggests a potential shift towards a more cautious approach.
Key areas for the growth strategy include enhancing private investment, supporting MSMEs, recognizing the critical role of agriculture, securing funds for the green transition, addressing the education-employment gap, and improving state capacity. The economic outlook highlights potential caution in private capital formation, concerns over cheaper imports from countries with excess capacity, expected growth in merchandise exports due to better global prospects, and an increase in services exports. Additionally, GST and IBC reforms are delivering the anticipated benefits.
The growth forecast for FY25 estimates a real GDP growth rate of 6.5-7%, with market expectations favoring higher growth despite balanced risks. Geopolitical uncertainties, including expected minor and major conflicts in the coming decades, may impact economic stability. Regarding infrastructure development, the National Highways Authority of India (NHAI) has earmarked 33 assets for monetization in FY25.
