Fri Jan 31 23:58:25 UTC 2025: ## India’s Economic Survey 2024-25 Highlights Growth Challenges and Opportunities Ahead of Budget 2025-26

**NEW DELHI** – India’s Economic Survey 2024-25, presented Friday, painted a mixed picture of the nation’s economic health, highlighting robust growth in some sectors while pointing to challenges that need urgent attention ahead of the Union Budget 2025-26.

**Textile Sector Needs Simplification:** The survey underscored the need for streamlining complex export procedures in the textile industry, a major source of employment. Unlike competitors like China and Vietnam, Indian exporters face cumbersome regulations, including meticulous accounting of even the smallest components. The survey recommended simplifying and consolidating these processes to boost competitiveness and reduce costs. The rising costs associated with global shifts towards sustainable sourcing, particularly due to new EU regulations, also pose a significant challenge, especially for smaller enterprises.

**Tamil Nadu’s Industrial Success Story:** The survey highlighted Tamil Nadu’s success in diversifying its industrial base beyond leather, attracting foreign investment through proactive policies and streamlined processes. Initiatives like customized incentive packages and dedicated investment facilitators were credited for this success.

**Maritime Sector Transformation:** The Ministry of Ports, Shipping & Waterways lauded the Economic Survey’s recognition of the sector’s transformation under the Modi government, citing significant improvements in port capacity and container turnaround times.

**Concerns over Long Working Hours:** The survey warned against excessively long working hours, citing research linking them to decreased productivity and mental health issues. This comes amid ongoing debates in corporate India about ideal work-week lengths.

**Budget 2025 Expectations:** The upcoming budget is highly anticipated, with widespread expectations for income tax relief, particularly for the middle class grappling with inflation. There’s also considerable anticipation for increased investment in infrastructure, including railways and airports, and a focus on job creation, particularly in rural areas. Specific demands include funding for an international airport in Himachal Pradesh and completion of railway lines.

**Digital Divide Persists:** The survey acknowledged a persistent digital divide between urban and rural areas, particularly affecting female students, highlighting the need for targeted interventions to bridge this gap. While the higher education sector has shown growth, doubling educational infrastructure is necessary to meet government targets.

**Skill Development Crucial:** The survey stressed the growing importance of skill-based education in the Industry 4.0 era, emphasizing the need for both technical and soft skills to ensure workforce readiness.

**Economic Outlook:** The survey projects GDP growth between 6.3% and 6.8% for FY26, acknowledging both potential upsides (increased consumption and investment) and downsides (global uncertainties and the need for significant deregulation). Concerns were raised about the potential cascading effect of a US market correction on the Indian stock market. The survey emphasized the importance of fostering innovation, private sector participation in infrastructure development, and the need to address the challenges of global competition, specifically citing China’s influence on manufacturing. The government aims to align the workforce with global demands through reskilling initiatives.

The Economic Survey sets the stage for Finance Minister Nirmala Sitharaman’s presentation of the Union Budget 2025-26 on Saturday. The budget will need to address the complex issues raised in the survey while balancing fiscal discipline with the need for economic growth and social welfare.

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