31 JAN 2025 2:23PM by PIB Delhi
India's Economic Outlook:
India's GDP is expected to grow between 6.3% and 6.8% in FY26, with real GDP estimated at 6.4% in FY25, close to its decadal average. The real GVA is also estimated to grow by 6.4% in FY25. Capital expenditure has shown growth of 8.2% in July-November 2024 and is expected to increase further. Retail headline inflation softened to 4.9% in April-December 2024, aligning with the target of around 4% in FY26. Overall exports grew by 6.0% during April-December 2024, while India's services export growth surged to 12.8% during April-November FY25.
Key Highlights:
- Gross FDI inflows increased from USD 47.2 billion in FY24 to USD 55.6 billion in FY25
- Forex reserves at USD 640.3 billion as of December 2024, covering 10.9 months of imports
- Capacity addition in solar and wind power increased by 15.8% in December 2024
Policy Recommendations:
The Economic Survey advocates deregulation to accelerate and sustain economic growth, emphasizing the need for continued infrastructure investment and the launch of a ₹50,000 crore Self-Reliant India Fund to support MSMES. The Survey also highlights the importance of collaborative efforts between government, private sector, and academia to minimize adverse AI societal effects.
Global Economic Trends:
The global economy grew by 3.3% in 2023, with the IMF projecting an average growth of around 3.2% over the next five years. The Survey notes uneven growth across regions in 2024, with a slowdown in global manufacturing offset by better performance in the services sector.
Conclusion:
India's economic prospects for FY26 are balanced, with opportunities for growth in key sectors. Structural reforms and deregulation are essential to reinforce India's medium-term growth potential and improve global competitiveness.
