Summary: Economic Survey 2024-25 | Indian Economy for UPSC CSE PDF Download

The Economic Survey is an important document that is prepared for the country’s economic performance analysis over the past financial year and offers policy recommendations for the upcoming fiscal year. In India, the Economic Survey is released one day before the Union Budget. The Economic Survey 2025 was published on January 31, 2025. It is prepared by the Department of Economic Affairs (DEA) under the Ministry of Finance, and serves as a resource for policymakers, economists and researchers.

Economic Survey 2025

Economic Survey 2024-25 provides an elaborated analysis of the economic performance of the country over the previous year (2024-2025) and includes key policy recommendations for the upcoming fiscal year (2025-2026).

Structure of the Economic Survey 2025

The Economic Survey 2025 is divided into two parts:

• Part A: Focuses on economic trends, key challenges, and policy recommendations that shape the government’s approach to economic management.
• Part B: Provides detailed statistical analysis of various sectors, including agriculture, industry, services, infrastructure, healthcare, and environmental concerns.

Economic Survey 2025 History

The Economic Survey was first presented in 1950-51 as part of the Union Budget and since 1964, it has been presented as a stand-alone document. This change was made to ensure an elaborated review of economic developments in the previous year before budget release This year the Economic Survey 2025 is released on 31st January 2025 whereas the Union Budget is released on 1st February 2025.

Economic Survey 2025 Highlights

The Economic Survey 2025 was released on January 31, 2025. It includes in-depth analysis of the economic performance of India in the previous year. Here are the Economic Survey 2025 Key Highlights:

• India’s real GDP growth is projected at 6.4% for FY25, The real GVA (Gross Value Added) is also expected to grow at 6.4% in FY25. GDP growth for FY26 is forecasted between 6.3% and 6.8%.
• All the sectors are functioning as expected. The Agriculture Sector continues to operate above trend levels. Industrial Sector rebounded strongly post-pandemic whereas Service Sector has stabilized its growth at pre-pandemic levels.
• Retail inflation has reduced from 5.4% (FY24) to 4.9% (April-December 2024) due to government interventions. Consumer price inflation is expected to align around 4% in FY26.
• Gross NPAs (Non-Performing Assets) of banks dropped to a record low of 2.6% (as of Sept 2024). Credit-GDP gap reduced from -10.3% (Q1FY23) to -0.3% (Q1FY25). Insurance market has grown 7.7% year-over-year, reaching ₹11.2 lakh crore in FY24.
• Foreign Direct Investment has increased by 17.9% year-over-year, reaching $55.6 billion in FY25. Overall exports (merchandise + services) grew 6% year-over-year, in the first nine months of FY25.
• The Union Government’s capital expenditure (capex) on infrastructure increased by 38.8% (FY20-FY24).
• Industrial sector grew by 6.2% in FY25 (as per first GDP advance estimates). Steel production grew by 4.6%, while automobile domestic sales increased by 12.5% in FY24. 
• Electronics production grew at a CAGR of 17.5% (FY15-FY24). Textiles, apparel, pharmaceuticals, and steel industries witnessed steady growth.
• Service sector contributes 55.3% to total GVA in FY25 (up from 50.6% in FY14) majorly focusing on the Skill development for workforce and simplifying grassroots-level regulations.
• Agriculture & other related activities contribute 16% to GDP (FY24).

Why is the Economic Survey Released Before the Budget?

• The Economic Survey is released a day before the Union Budget to ensure transparency and build the foundation for budget decisions. It offers an economic overview by analyzing growth trends, challenges, and opportunities while highlighting key issues such as inflation, fiscal deficit, unemployment, and sectoral performance. 
• The Economic Survey helps to shape policy direction, influencing budget allocations and reforms. Understanding the linkage between the Economic Survey and the Union Budget 2025 is important, as it reflects the government’s economic strategy, policy priorities, and governance approach.