FM Nirmala Sitharaman tables Economic Survey in Parliament
Finance Minister Nirmala Sitharaman has tabled the Economic Survey 2024-25 in Lok Sabha. As per the survey, India’s GDP growth for the upcoming fiscal year was projected to range between 6.3% and 6.8%. The survey, compiled by Chief Economic Advisor V Anantha Nageswaran and his team, highlighted that the fundamentals of the domestic economy remain strong, supported by a healthy external account, gradual fiscal consolidation, and stable private consumption. Given these factors, the report anticipates growth in FY26 to fall within the 6.3-6.8% range. GDP represents the total value of all goods and services produced within India’s borders in a given year.
Economic Survey likely to project GDP Growth of 6.3-6.8%
The Economic Survey for 2024-25 is expected to project a GDP growth rate between 6.3% and 6.8% for the upcoming fiscal year, according to sources quoted by PTI. Authored by Chief Economic Advisor V Anantha Nageshwaran and his team, the report will be presented in Parliament this afternoon. For the current fiscal year, India’s GDP is forecast to grow at a four-year low of 6.4%, driven by weak manufacturing and investment, as estimated by the National Statistics Office. This growth estimate is lower than the 6.5-7% range projected in last year’s Economic Survey and the Reserve Bank of India’s 6.6% forecast. The Economic Survey, released annually a day before the Union Budget, offers an overview of the current fiscal’s macroeconomic performance and insights into the expected trajectory for the coming year.
President Murmu addresses Parliament
President Droupadi Murmu, in her address on the first day of the Budget session, spoke about the government’s efforts to improve the lives of citizens. She said that the government’s third term is getting work done at thrice the speed of previous administrations, citing decisions on issues such as Waqf boards and One Nation, One Election. She highlighted the benefits of the Ayushman Bharat Scheme, noting that it has been expanded to provide health insurance for six crore senior citizens aged 70 and above. She also addressed the issue of paper leaks and emphasized the government’s commitment to tackling corruption. President Murmu paid tribute to the victims of the stampede during the Mahakumbh festival and also honored former Prime Minister Manmohan Singh, who passed away in December.
Furthermore, she praised the government’s focus on youth education and creating new employment opportunities. She acknowledged significant decisions made by the government, including reforms related to Waqf boards and the initiative of One Nation, One Election. She also noted the success of government schemes in lifting millions out of poverty.
PM Modi kicks off Budget Session
Prime Minister Narendra Modi ahead of the Budget session expressed his hopes and optimism for the middle class. “I pray to Goddess Lakshmi to shower poor, middle class with blessings,” he said. He also expressed confidence that this Budget session would instill new confidence and energy in achieving the goal of a ‘Viksit Bharat’ (Developed India). Modi outlined that the roadmap for the country’s economic activities was built on the principles of innovation, inclusion, and investment. He also highlighted that for the first time since 2014, no foreign attempts had been made to disrupt the proceedings ahead of the session, a point he took pride in as a sign of the nation’s growing stability.
Finance Minister Nirmala Sitharaman will present this pre-budget document, which provides a detailed assessment of the economy’s current state and an outlook for the upcoming fiscal year 2025-26. The document will be tabled in Lok Sabha at 12 noon and at 2 PM in Rajya Sabha.
Ahead of the Union Budget, the Congress came out with its version of ‘Real State of the Economy’ report, claiming that the Modi government is marching India forward into the middle income trap, which will make the country uncompetitive, underproductive and unequal.
The opposition party also said that India’s GDP growth for 2024-25, as per government data, is expected to be 6.4%. Party hints, India needs a sustained GDP growth of 8 per cent if it wants to encash its historic demographic dividend.
State of the economy: What to Expect
India’s economy displayed a downward trend last year with the GDP falling short of the RBI forecast of 7 percent, growing by only 5.4 percent in the July-September quarter of 2024-25. Growth in the April-June quarter was also below expectations.
The RBI recently further lowered its GDP growth forecast for 2024-25 to 6.6 percent from 7.2 percent, while the government estimates 6.4 percent. The Economic Survey released in July 2024 projected a real GDP growth rate of 6.5-7 percent for 2024-25, acknowledging higher market expectations.
What is the Economic Survey?
The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance under the supervision of the Chief Economic Adviser. It offers insights into economic performance and key indicators for 2024-25 (April-March). It will set the tone for the Budget 2025-26, which will be presented on Saturday. First introduced in 1950-51 as part of the budget documents, the Economic Survey was separated in the 1960s and has since been presented a day before the Union Budget.
Each year, the Economic Survey features a central theme reflecting the government’s focus. In 2022, the theme was the ‘Agile Approach,’ emphasizing India’s dynamic economic response to the COVID-19 pandemic. In 2023, it was ‘Recovery Complete,’ marking India’s return to pre-pandemic growth levels despite challenges like the Russia-Ukraine war and inflation. The 2024 edition focused on ‘Economic Resilience.’ Alongside sectoral analyses, the document often introduces new chapters addressing emerging economic priorities.
Budget Session 2025
The Budget Session of Parliament will begin on January 31 and is scheduled to conclude on April 4. On the first day of the session, President Droupadi Murmu will address the joint sitting of both Houses of Parliament. The Union Budget will be presented on February 1 at 11 AM in the Lok Sabha, where the Finance Minister will outline fiscal policies, revenue and expenditure estimates, taxation reforms, and other key announcements.