News Desk
NEW DELHI — Finance Minister Nirmala Sitharaman on Friday presented the Economic Survey 2024-25 in Parliament, offering insights into India’s economic performance and setting the stage for the upcoming Union Budget. The survey projects the economy to grow between 6.3% and 6.8% in FY26, reflecting stable economic fundamentals and strong domestic demand.
Key Economic Trends
India’s economy remains on solid footing, with steady private consumption, a strong external account, and fiscal discipline, the survey noted. Inflation, a key concern for households, is expected to ease in the coming months as vegetable prices drop seasonally and the arrival of the Kharif and Rabi harvests helps stabilize food costs. However, unpredictable weather and rising global agricultural prices could pose risks.
On a global scale, softening energy and commodity prices have kept inflation stable, though uncertainties in international markets remain a challenge.
India’s Resilient Financial Position
The survey highlighted India’s strong foreign exchange reserves, which currently cover 90% of external debt and provide over ten months of import cover. Reserves peaked at $704.9 billion in September 2024 before adjusting to $634.6 billion in January 2025. Stable capital inflows have played a crucial role in maintaining economic strength.
Additionally, the formal employment sector has seen notable growth, with net Employees’ Provident Fund Organisation (EPFO) subscriptions more than doubling from 61 lakh in FY19 to 131 lakh in FY24—a sign of expanding workforce participation.
Looking Ahead to the Budget
Traditionally released a day before the Union Budget, the Economic Survey serves as a blueprint for the government’s economic priorities. While last year’s theme focused on economic resilience, previous surveys have addressed recovery from the pandemic and global conflicts. The 2025-26 Budget, set to be presented on Saturday, will likely build on these findings as India navigates global uncertainties while maintaining steady growth.
