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Informist, Friday, Jan. 31, 2025

 

NEW DELHI – Following are the highlights of Economic Survey for 2024-25 (Apr-Mar), tabled in Parliament by Finance Minister Nirmala Sitharaman on Friday:

 

MACROECONOMY

* India FY26 GDP growth seen 6.3-6.8%

* India's economic prospects for FY26 balanced

* India needs reforms to reinforce medium-term growth potential

* Food inflation likely to soften Jan-Mar on seasonal factors

* Food prices seen contained in H1 FY26 on good rabi output

* Core CPI outlook benign on soft global energy, commodity prices

* In FY25, capital expenditure gathered momentum post elections

* Investment expected to pick up, supported by high public capex

* Need to increase pvt participation in infrastructure sector

* Huge unmet demand in infra development despite govt efforts

* Bringing in innovative frameworks for invest in infra projects

* FY25 national monetisation pipeline target at INR 1.91 tln

* Rebounding rural demand augurs well for consumption in India

* Post election, govt capex remained slow on unusual monsoon
* YoY comparison for capex in Apr-Jun may not be appropriate
* Govt capex saw an uptick in Jul-Nov
* Infra-related ministries used 60% of budgeted capex in Apr-Nov

* Infra build-up on course despite capex constraints in Apr-Jun

* Built 5,853 km of national highways Apr-Dec vs 6,215 km yr ago
* Urban waterways projects valued at INR 13.03 bln underway
* Addition of transmission lines affected by heavy monsoon
* Invest activity slowdown likely temporary
* Green shoots in capital formation visible

* Renewable energy now makes up 47% of India's installed capacity
* Climate change, water scarcity issues need focused intervention
* Consumption moving to svcs from mfg on high commodity prices
* Need strong adaptation strategy amid climate change risks
* Must build resilience vs climate-induced setbacks to aid growth
* Need to maximise use of fossil fuel resources in medium term
 

INDUSTRY

* India can benefit from global industrial diversification

* Need deregulation, R&D, skilling for more industrialisation

* Aim to construct data centre with 1.03 GW capacity by 2028
* India's data centre mkt to grow to $11.6 bln by 2032
* Scale of challenges in AI left unaddressed are significant
* May be costly to dismiss AI fears as exaggerated
* May be costly to dismiss adverse impacts of AI as overestimated
* Jobs challenge not numbers but also raising workforce quality

* Anxiety over effects of AI remain high as India a svcs-led econ
* Along with benefits, using AI in banking entails risks too
* Need pvt sector to contribute more in R&D
* Large, prolonged shr mkt fall can have non-trivial spending hit
* Uptake of private enterprise still limited in many core sectors
 

EXTERNAL SECTOR

* India's external sector resilient amid global headwinds
* Need forward-looking trade path on greater global protectionism

* Need to improve India's global competitiveness by deregulation

* Must cut trade costs, boost export competitiveness
* Much remains to be done to enhance trade competitiveness

* Aggressive trade policies pose risk to India's mfg exports
* Geopolitical tensions pose risk to India's mfg exports

* Need to improve India's global competitiveness through reforms
 

FARM SECTOR

* Climate change, water scarcity major obstacles for agri sector
* Adoption of digital technologies to enhance agri productivity

* Need to improve price discovery, mkt efficiency in farm sector
* Agri sector still has significant untapped growth potential

 

End

 

Compiled by Vinod Bhovad

Filed by Vandana Hingorani

 

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