Economic Survey 2025, Key Highlights and Sectoral Analysis

The Economic Survey 2025 prepared by the Ministry of Finance has been an indispensable document in guiding the understanding of India's performance over the past year and future policy directions.

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The Economic Survey 2025 prepared by the Ministry of Finance has been an indispensable document in guiding the understanding of India’s performance over the past year and future policy directions. It encompasses insights into the growth in Gross Domestic Product, inflation trends, fiscal policy, employment, and key sectoral developments. A broad analysis of the survey is below.

Key Highlights of Economic Survey 2025

GDP Growth Rate: Estimated at 6.5%, supported by private consumption and public investments.
Inflation: Averaged around 5.2%, mainly due to fluctuating food and fuel prices.
Fiscal Deficit: Targeted at 5.1% of GDP, showing the government’s commitment to fiscal consolidation.
Current Account Deficit (CAD): Expected to moderate to 1.8% of GDP, supported by strong export performance.

Economic Survey 2025 Sectoral Analysis

Sector	Growth Rate (2024-25)	Key Highlights	Challenges	Government Initiatives & Outlook
Agriculture & Allied Activities	3.8%	Increased MSP for key crops Growth in the horticulture and dairy sector Agri-tech adoption rising	Climate change impact Water scarcity issues Small farmers’ financial burden	PM-KISAN scheme expansion Crop insurance improvements Digital agriculture push
Manufacturing	6.5%	PLI scheme boosted industrial production Growth in automobile and electronics sectors Make in India success	Supply chain disruptions High input costs Labor market issues	Expansion of PLI schemes Incentives for MSMEs Green manufacturing initiatives
Services	8.2%	IT and fintech leading growth Tourism rebounding post-COVID Healthcare and education services expanded	Skill gap in workforce Uneven urban-rural growth Global economic uncertainty	National Skill Development Mission expansion Digital India 2.0 FDI inflow facilitation
Infrastructure & Real Estate	7.0%	PM Gati Shakti boosted logistics sector Housing demand increased Renewable energy projects gained momentum	Delays in land acquisition High raw material costs Financing constraints	Affordable housing push Smart city projects acceleration Increased public-private partnerships (PPPs)
Banking & Finance	6.9%	Credit growth improving Digital payments ecosystem strengthening NPAs under control	Rising interest rates Global market volatility Inflationary pressures	RBI’s digital currency pilot Financial inclusion schemes Strengthening of fintech regulations
Energy	5.8%	Growth in renewable energy adoption Domestic coal production increased Oil and gas sector reforms	Dependence on imports Transition to green energy slow High subsidies burden	Push for solar and wind energy Electric mobility incentives Hydrogen economy roadmap
Trade & External Sector	5.4%	Exports increased in IT, pharma, and textiles India signed FTAs with new countries FDI inflows steady	Global demand fluctuations Geopolitical risks Trade deficit concerns	Export promotion policies Strengthening of Atmanirbhar Bharat Trade diversification strategy
Employment & Labor	5.1%	Formalization of workforce increased Gig economy expansion MGNREGA played a crucial role	Rural unemployment still high Low wage growth Skilling gap persists	Skill India 2.0 Strengthening of gig worker policies MSME employment push
Digital & Technology	9.1%	AI, blockchain, and IoT adoption rising 5G rollout boosted telecom sector Startups received record funding	Cybersecurity threats Digital divide in rural areas Dependence on foreign tech	Digital India expansion AI mission funding Strengthening data protection law

Policy Recommendations and Future Outlook

The Economic Survey 2025 emphasizes structural reforms, sustainable growth strategies, and technological advancements. Key recommendations include:

Strengthening fiscal discipline while ensuring growth-oriented spending.
Promoting private sector participation in critical infrastructure projects.
Enhancing ease of doing business and regulatory frameworks.
Addressing climate change challenges through green policies.
Leveraging artificial intelligence and digital innovations for inclusive growth.

Conclusion

Optimistically yet pragmatically, India’s economic direction is outlined through the Economic Survey 2025. Resilience, digital transformation, and inclusive growth in the economic plan will help provide a basis for sustained economic development in the following years.