Economic Survey 2024-25: India’s GDP Likely To Grow At 6.3-6.8 Per Cent In FY26

This marks the beginning of the Budget Session, which will last till April 4, 2025. Lok Sabha has been adjourned now till 11 AM February 1, 2025.

Indian Economy Outlook

Sharing the outlook for the economy ahead, the survey noted that economic prospects of India in FY26 are balanced. The document said that elevated geopolitical and trade uncertainties will act as major challenges to growth, along with likely commodity price fluctuations.

“Rural demand backed by a rebound in agricultural production, an anticipated easing of food inflation and a stable macro-economic environment provide an upside to near-term growth. Overall, India will need to improve its global competitiveness through grassroots-level structural reforms and deregulation to reinforce its medium-term growth potential,” the document stated.

India’s GDP Likely At 6.4 Per Cent In FY25

The survey further stated that the domestic economy is estimated to grow at 6.4 per cent in the 2024-25 fiscal year (FY25), as per the first advance estimates of national accounts. The economic report card highlighted that growth in the first half of the current fiscal year was backed by agriculture and services, with improvement seen in rural demand due to record high Kharif production and favourable agricultural conditions.

“The manufacturing sector faced pressures due to weak global demand and domestic seasonal conditions. Private consumption remained stable, reflecting steady domestic demand. Fiscal discipline and strong external balance supported by a services trade surplus and healthy remittance growth contributed to macroeconomic stability. Together, these factors provided a solid foundation for sustained

growth amid external uncertainties,” the survey observed.