Context:
Finance Minister Nirmala Sitharaman tabled the Economic Survey 2024-25 in Parliament.
Key Highlights of the Economic Survey 2024-25:
- Global Economy – Moderate but uneven growth in 2024, with the IMF projecting 3.2% growth.
- Slowdown in manufacturing due to supply chain disruptions, while the services sector remained strong.
- Global inflation eased, but services inflation persisted, leading to divergent monetary policies across central banks.
- India’s Economy – GDP projected to grow between 6.3-6.8% in FY26 (2025-26).
- Real GDP estimated to grow by 6.4% in FY25 (2024-25), driven by agriculture and services, while manufacturing faces challenges.
- Sector-Wise Performance –
- Agriculture: 3.8% growth in FY25, driven by record Kharif production and strong rural demand.
- Industry & Manufacturing: 6.2% growth in FY25, with manufacturing slowing due to weak global demand.
- Services: Fastest-growing sector at 7.2% in FY25, led by Information technology, finance, and hospitality.
- External Sector – Exports grew at 1.6%, but imports rose 5.2%, widening the trade deficit.
- India remained the top global recipient of remittances, helping contain the current account deficit at 1.2% of GDP.
Economic Survey:
- Annual report presented before the Union Budget to assess India’s economic condition.
- Prepared by the Economic Division of the Ministry of Finance under the Chief Economic Adviser’s supervision.
- Tabled in both houses of Parliament by the Union Finance Minister.
- Assesses economic performance, highlights sectoral developments, outlines challenges, and provides an economic outlook for the coming year.
- 1st presented in 1950-51 as part of the budget; became a separate document in 1964, now tabled a day before the budget.
Source: PIB
Previous Year Question
Increase in absolute and per capita real GNP do not connote a higher level of economic development, if:
[UPSC Civil Service Exam – 2018 Prelims]
(a) Industrial output fails to keep pace with agricultural output.
(b) Agricultural output fails to keep pace with industrial output.
(c) Poverty and unemployment increase.
(d) Imports grow faster than exports.
Answer: (c)