Bright Indian Economy Outlook, FY25 Growth at 6.5-7%

The Economic Survey 2023-24 released by the Ministry of Finance has provided an optimistic outlook for the Indian economy. The survey projects a real GDP growth of 6.5-7% for the financial year 2024-25 (FY25). Despite global challenges, India’s economy has managed to maintain momentum and stability.

Economic Growth and Stability The survey highlights that India’s economy carried forward the momentum built in FY23 into FY24. The focus on maintaining macroeconomic stability ensured minimal impact from global challenges. In FY24, India’s real GDP grew by 8.2%, marking a third consecutive year of over 7% growth. This growth was driven by stable consumption demand and steadily improving investment demand. On the supply side, gross value added (GVA) at 2011-12 prices grew by 7.2% in FY24.

Employment Trends The survey indicates a positive trend in employment. The annual Periodic Labour Force Survey (PLFS) shows a decreasing unemployment rate for individuals aged 15 and above. This trend is accompanied by an increase in the labour force participation rate and the worker-to-population ratio. The female labour force participation rate has been rising for six years, reaching 37% in 2022-23.

Inflation and Price Stability The survey notes that inflation rates have fallen in many countries as supply chain disruptions lessened and the energy and food price spikes subsided. After peaking in 2022, inflation significantly decreased throughout 2023. The reduction in supply chain pressures for tradeable goods in 2023 contributed to a notable decrease in goods inflation, easing logistical issues.

The Economic Survey 2023-24 provides a bright outlook for India’s economy with projected growth of 6.5-7% for FY25. The positive trends in employment and the decrease in inflation are encouraging signs of economic stability and growth.

Aakhir Tak Editor-in-Chief

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