Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2024-25 in both the Lok Sabha and Rajya Sabha on January 31. Shortly after, proceedings in both houses were adjourned for the day. The survey projects India’s GDP growth for the financial year 2025-26 (FY26) to range between 6.3% and 6.8%, emphasizing strong domestic fundamentals, stable private consumption, a balanced external account, and ongoing fiscal consolidation as key factors supporting economic growth. Serving as a precursor to the Union Budget 2025-26, the survey underscores the government’s economic outlook despite global uncertainties.
The Economic Survey, an annual report prepared by the Economic Division of the Department of Economic Affairs under the Finance Ministry, provides a detailed analysis of the economy, key financial trends, and policy recommendations for the upcoming fiscal year. Originally part of the Union Budget, it has been presented separately since the 1960s, typically a day before the budget announcement. The latest survey also reviews India’s recent economic performance, noting a 5.4% GDP growth rate in Q2 FY25, lower than the RBI’s 7% estimate, and a downward revision of the RBI’s GDP forecast for FY25 from 7.2% to 6.6%. However, the government remains optimistic about a 6.4% growth rate, following an 8.2% growth in FY24, 7.2% in FY23, and 8.7% in FY22.
The Budget Session of Parliament commenced on January 31 and will continue until April 4. The Union Budget for 2025-26 is scheduled to be presented on February 1 at 11 AM in the Lok Sabha. This session is crucial for discussing economic policies, financial allocations, and legislative matters that will shape India’s fiscal and economic direction for the coming year.