Economic Survey 2025 Highlights: Inflation Set to Improve; GDP Growth Projected at 6.3-6.8 Percent

Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025 in the Lok Sabha, providing a comprehensive analysis of India's economic landscape and future outlook ahead of the Budget 2025. The survey highlights key economic indicators such as growth rate, inflation, employment, and investment, stating that India's economy remains resilient and that inflation has decreased.

GDP Growth Forecasted Between 6.3% and 6.8% for FY26
The Economic Survey report estimates India's GDP growth for FY26 to be in the range of 6.3% to 6.8%, signaling optimism for continued economic stability and robust growth.

Inflation Expected to Ease
The survey also projects a decline in inflation during the fourth quarter of FY25, with falling vegetable prices, particularly of vegetables, expected to drive down overall inflation. This reduction is anticipated to ease the financial burden on the common man and lower the cost of living.

Indian Economy Poised for Continued Strength
According to the survey, India's domestic economy remains strong, with forecasts indicating sustained growth in the coming years. Although there has been a temporary dip in investment, the overall outlook suggests that the Indian economy will remain resilient, weathering global economic challenges and maintaining its growth trajectory.

Temporary Dip in Investment Expected to Recover
The Economic Survey highlights that the current dip in investment is only temporary, with expectations for a rebound in the near future. To facilitate this recovery, the government is considering various initiatives aimed at increasing private sector involvement in the infrastructure sector, which could boost overall investment.

Policy Changes and Global Trade
The survey also warns that global policy changes could influence trade patterns, making it essential for India to strengthen its trade policies to maintain a competitive edge in the global market. This proactive approach could ensure India stays ahead in the international trade race.

Private Consumption Supporting Economic Growth
Private consumption has stabilized, offering a solid foundation for economic growth. The government's developmental schemes and initiatives have contributed to an increase in private consumption, a positive indicator for the future strength of the Indian economy. This aligns with the strong outlook for India’s continued economic growth and resilience.

Political Uncertainty and its Impact
The Economic Survey warns that global political uncertainty may pose risks to India’s economy, although policymakers are actively addressing these challenges.

Commodity Prices Expected to Drop
Commodity prices are projected to decrease, which could help control inflation and provide relief to consumers, particularly by lowering the cost of imported goods.

Food Inflation Concerns
Climate change is expected to drive food inflation, especially for agricultural products. The government is implementing measures to stabilize food grain prices.

Boosting Global Competitiveness
The survey states the need for India to enhance its global competitiveness by improving business policies and investment strategies to strengthen its position in the international market.

Boosting Private Sector Participation in Infrastructure
The Economic Survey stresses the need to increase private sector participation in the infrastructure sector to accelerate development, strengthen infrastructure, and create more job opportunities.

Significance of the Economic Survey
The Economic Survey report plays a crucial role as a guiding framework for the government, offering an economic assessment ahead of the 2025 budget. It helps identify key areas for investment, improvement, and policy implementation. The primary objective of the survey is to assess the effectiveness of government economic policies and their contribution to national growth, enabling the government to prioritize schemes for the upcoming budget.