The Department of Economic Affairs released a report ‘Economic Survey 2024-25’ on 31 January 2025. The key economic highlights as per the aforesaid report and certain significant aspects as announced by the Hon’ble Finance & Corporate Affairs Minister Mrs. Nirmala Sitharaman in the Union Budget 2025 on 1 February 2025 are as under:

GDP GROWTH

India’s GDP grew by 6.7% and 5.4% in Q1 and Q2 of FY 2024 25, respectively. This implies a real GDP growth of 6% in the first half of the current fiscal year.

The India’s real GDP is estimated to grow by 6.4% in FY 2024-25 and is projected to grow at 6.3% - 6.8% in FY 2025-26

 EXTERNAL DEBT

India’s external debt has remained stable over the past few years with the external debt to GDP ratio standing at 19.4% at the end of September 2024.

 

FOREIGN DIRECT INVESTMENT (FDI)

  • FDI recorded a revival in FY 2024-25 with gross FDI inflows increasing from US$ 47 billion in the first 8 months of FY 2023-24 to US$ 55 billion in the same period of FY 2024-25, evidencing a YoY growth of 17.9%.
  • India’s foreign exchange reserves increased from US$ 616 billion at the end of January 2024 to US$ 704 billion in September 2024 and stood at US$ 640 billion at the end of December 2024.

FISCAL DEFICIT

The revised estimate of the fiscal deficit for FY 2024-25 is 4.8% of the GDP. The estimate for FY 2025-26 is 4.4% of the GDP.

INFLATION

The Retail inflation has moderated from 5.4% in FY 2023-24 to 4.9% in April - December 2024. IMF has projected an inflation rate of 4.4% in FY 2024-25 and 4.1% in FY 2025-26 for India.

FOREIGN TRADE

  • The total exports (merchandise and services) have registered a steady growth in the first 9 months of FY 2024-25, reaching US$ 602 billion, witnessing a YoY growth of 6%.
  • The total imports during the same period reached US$ 682 billion, registering a growth of 6.9% on the back of steady domestic demand.

TAX COLLECTIONS.

 

Trends in Tax Receipts

 

 OTHER ASPECTS

  •  GIFT city has continued its ascent as a leading IFSC, improving its rank by 5 places in the ‘Global Financial Centres Index 36’ (GFCI 36), rising to 52nd position.
  • India has secured 4th place among the world's largest foreign exchange reserve-holding countries following China, Japan, and Switzerland.
  • Viksit Bharat 2047 envisions India as a developed nation by 2047, the centenary of our independence. This would entail sustained economic growth of close to 8% every year for at least a decade.
  • Real Estate Investment Trust (REITs) and Infrastructure Investment Trusts (InvITs) have raised Rs. 16,456 Crores during April to December 2024. During FY 2023-24, Rs. 39,024 crore was raised by REITs and InvITs.

 

 

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