Economic Survey 2024-25

Current Context: The Economic Survey 2024-25 was released on January 31, 2025. It provides a detailed analysis of India's economic performance over the past year and outlines the government's priorities and projections for the upcoming fiscal year.

• Here are some key highlights:
• GDP Growth: India's real GDP is projected to grow by 6.4% in the fiscal year 2025. The survey estimates GDP growth between 6.3% and 6.8% for the financial year 2025-26.
• Inflation: Retail inflation decreased from 5.4% in 2023-24 to 4.9% in 2024-25 (April-December). Food inflation, however, increased from 7.5% to 8.4% during the same period.
• Current Account Deficit: India's current account deficit (CAD) was 1.2% of GDP in the second quarter of 2024-25, compared to 1.3% in the corresponding quarter of 2023-24.
• Public Finances: The central government's fiscal discipline has improved, with capital expenditure accounting for 21% of total expenditure in 2023-24.
• Agriculture: The agriculture sector has shown resilience with an average growth rate of 5% from 2017 to 2023. Measures to improve farmer incomes include raising the cap for collateral-free agricultural loans from Rs 1.6 lakh to Rs 2 lakh.
• Services Sector: The services sector, referred to as the "Old War Horse," continues to be a significant contributor to GDP, accounting for around 55% of the Gross Value Added (GVA) in FY25.
• Higher Education: The number of higher education institutions (HEIs) has grown by 13.8% over the past eight years, and the Gross Enrolment Ratio (GER) has increased from 23.7% to 28.4% in the 18-23 age group.

Question:

1 What is the projected real GDP growth rate for India in the fiscal year 2025, as per the Economic Survey 2024-25?

• A) 6.8%
• B) 6.4%
• C) 6.2%
• D) 7.0%

Answer: B) The Economic Survey 2024-25 has projected India's real GDP growth at 6.4% for FY 2025, with an estimated growth range between 6.3% and 6.8% for FY 2025-26.