Economic Survey 2024-25, tabled by Finance Minister Nirmala Sitharaman on January 31, 2025, projects India’s GDP growth for the financial year 2025-26 (FY26) to be between 6.3% and 6.8%.
This forecast aligns with the International Monetary Fund’s projection of 6.5% but is slightly lower than the World Bank’s estimate of 6.7%.
The survey highlights that while the economy remains on solid footing, growth could be moderate due to sluggish global demand and domestic seasonal factors.
Economic Survey 2024-25: AI and Job Creation Initiatives
The survey emphasizes the need for a strong job creation push to address India’s structural slowdown.
It suggests that job creation is crucial to meet the cost of living and improve wages.
The government is urged to focus on MSMEs (Micro, Small, and Medium Enterprises) and urban employment generation schemes to boost job penetration in the manufacturing sector.
Additionally, the government expects initiatives like Make in India and the Production Linked Incentive (PLI) scheme to play a significant role in job creation.
The Economic Survey also raises concerns about the impact of Artificial Intelligence (AI) on the labour market.
As AI technology advances, there is a growing worry about job displacement and the need for reskilling and upskilling the workforce.
The survey urges the government to strategically manage policies to navigate these challenges and maximize the benefits of AI while minimizing its adverse effects on employment.
Macroeconomic Stability and Fiscal Prudence
The survey highlights that India’s economic fundamentals remain robust, supported by a strong external account, calibrated fiscal consolidation, and stable private consumption.
These factors provide a firm foundation for sustaining growth amid global uncertainties.
The survey also notes that gross foreign direct investment inflows have revived, and overall exports have grown steadily, demonstrating the resilience of the export sector.
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