India

India’s Economy On Strong Footing, GDP Growth Projected At 6.5-7% For 2024-25: Economic Survey

Finance Minister Nirmala Sitharaman tabled the Economic Survey in Parliament today, projecting India’s GDP growth rate at a robust 6.5-7% for the financial year 2024-25. The survey highlights the country’s resilience in the face of global economic challenges, with the economy maintaining its momentum despite external headwinds.

According to the survey, global economic growth is expected to be 3.2% in 2023, with diverging growth patterns emerging among countries due to domestic structural issues, geopolitical conflicts, and monetary policy tightening. India, however, has bucked this trend, with its real GDP growing by 8.2% in FY24, exceeding 8% in three out of four quarters.

Also Read: India’s Banking & Financial Sectors Show Robust Growth In FY24: Economic Survey

The survey attributes India’s strong performance to macroeconomic stability, a thrust on capital expenditure, and sustained private investment. Gross Fixed Capital Formation increased by 9% in real terms in 2023-24, while healthier corporate and bank balance sheets are expected to further strengthen private investment.

Inflationary pressures have been effectively managed, with retail inflation declining to 5.4% in FY24 from 6.7% in FY23. Fiscal balances have also improved, despite expansionary public investment, thanks to tax compliance gains, expenditure restraint, and increasing digitization.

The external balance has been pressured by subdued global demand, but strong services exports have largely counterbalanced this, resulting in a Current Account Deficit (CAD) of 0.7% of GDP in FY24, an improvement from 2.0% in FY23.

Overall, the Economic Survey presents a positive outlook for India’s economy, with a strong foundation for growth and stability in the coming year.

Richa Kaushik

Recent Posts

Supreme Court Seeks Reply On Uttarakhand Madrasa Crackdown

The Supreme Court sought responses from the Centre and Uttarakhand on a petition challenging the…

26 mins ago

Supreme Court Rejects Medha Patkar’s Plea In Defamation Case

The Supreme Court upheld Medha Patkar’s defamation conviction in a case filed by Delhi’s Lieutenant…

54 mins ago

Supreme Court To Review Waqf Bill Amid Rising Opposition

The Supreme Court will hear challenges to Waqf Act amendments limiting the Board’s authority over…

1 hour ago

Supreme Court Transfers Bihar Bridge Collapse Petition To Patna HC

The Supreme Court has transferred a plea seeking an inquiry into Bihar’s frequent bridge collapses…

1 hour ago

Modi Government Introduce Waqf Amendment Bill In Parliament: A Numbers Game

The second phase of budget session is underway in Parliament, and amidst ongoing protests, the…

1 hour ago

How Your Skin Changes When You Stop Eating Sugar For 30 Days

Cutting sugar from your diet for 30 days can lead to noticeable improvements in your…

2 hours ago