Fri Jan 31 18:58:36 UTC 2025: ## India’s Economy Projected to Grow at 6.4% in FY25: Economic Survey

**New Delhi, January 31, 2025** – Finance Minister Nirmala Sitharaman today presented the Economic Survey 2025 to Parliament, offering a comprehensive analysis of the Indian economy. The survey projects robust growth, despite global headwinds.

Key highlights include a projected real GDP growth of 6.4% for FY25, aligning with the decade’s average. This is based on the first advance estimates of national income. Real Gross Value Added (GVA) is also anticipated to grow at 6.4% during the same period. While global economic growth averaged 3.3% in 2023, the IMF projects a slower 3.2% growth for the next five years. India’s real GDP growth is forecast to remain between 6.3% and 6.8% in FY26.

The survey notes that policy reforms and deregulation are strengthening long-term growth potential and enhancing India’s global competitiveness. However, geopolitical tensions, global conflicts, and trade policy risks pose significant challenges.

Inflation remains a concern, although retail inflation eased from 5.4% in FY24 to 4.9% between April and December 2024. Food inflation, however, is expected to remain under pressure in FY25, primarily due to increased prices of vegetables and pulses.

Positive indicators include a surge in capital expenditure (CAPEX) consistently since FY21, registering an 8.2% year-on-year growth in July-November 2024. India’s rise as the seventh-largest contributor to global services exports showcases its competitiveness. Non-petroleum and non-gems & jewelry exports also grew by 9.1% during April-December 2024, reflecting the resilience of Indian exports amidst global volatility.

The survey also highlighted the significant growth of India’s organized sector, with EPFO net subscriptions rising from 6.1 million in FY19 to 13.1 million in FY24. The BSE’s market capitalization exceeded $5 trillion for the first time, placing India third globally after the USA and Japan.

The Economic Survey 2025 is available for download from the Ministry of Finance website. The full report provides a detailed analysis of GDP growth, inflation, trade, and government policies.

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