Sun Feb 02 04:42:37 UTC 2025: ## India’s Economy Projected to Grow 6.3-6.8% in 2025, Economic Survey Reveals

**New Delhi, January 31, 2025** – India’s economy is poised for robust growth in 2025, according to the Economic Survey 2025 tabled in Parliament today by Finance Minister Nirmala Sitharaman. The survey projects a real GDP growth rate between 6.3% and 6.8%, a figure close to the decadal average despite global uncertainties.

The survey, prepared by the Department of Economic Affairs, paints a largely positive picture of the Indian economy. Key highlights include:

* **Strong GDP Growth:** The first advance estimates show a real GDP growth of 6.4% in FY24-25, driven by strong performance across all sectors – agriculture, industry, and services. Real GVA is also estimated to grow by 6.4%.
* **Easing Inflation:** Retail inflation has softened to 4.9% (April-December 2024-25), down from 5.4% in FY23-24. The RBI and IMF project further decline towards the 4% target in FY26.
* **Positive FDI and Mixed FPI Trends:** While foreign portfolio investments (FPIs) showed mixed trends due to global uncertainty, gross foreign direct investment (FDI) inflows have shown signs of revival.
* **Healthy Forex Reserves:** India’s forex reserves, while down from a September 2024 high of $706 billion to $640.3 billion by December 27, 2024, still cover 89.9% of external debt.
* **Improved Banking Sector:** Commercial banks have seen a consistent decline in their gross non-performing asset (GNPA) ratio, reaching a low of 2.6% by September 2024. The credit-GDP gap has also narrowed significantly.
* **Growth in Exports and Imports:** Total exports (merchandise and services) reached USD 602.6 billion in the first nine months of FY25, showing a steady 6% growth. Imports also registered a 6.9% growth.
* **Increased Credit to MSMEs:** Credit growth to Micro, Small, and Medium Enterprises (MSMEs) has outpaced that of large enterprises, reaching 13% year-on-year growth by November 2024.
* **Call for Deregulation:** The survey advocates for further deregulation to boost economic freedoms and drive growth, particularly in infrastructure development, emphasizing the need for increased private sector participation.

The survey acknowledges challenges, including global trade dynamics and the need for sustainable infrastructure development. However, the overall assessment points towards a healthy and resilient Indian economy continuing its upward trajectory. The upcoming Union Budget 2025 will likely build upon the insights provided in this Economic Survey.

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