Finance Minister Nirmala Sitharaman tabled the Economic Survey for 2024-25 in the Lok Sabha on Friday, marking a key step ahead of the Union Budget for the fiscal year 2025-26, which will be presented the following day. After the Economic Survey’s presentation, both Houses of Parliament were adjourned for the day.
The Economic Survey, a traditional pre-budget document, provides an in-depth analysis of the state of India’s economy. Prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance, and overseen by the Chief Economic Adviser, the document offers valuable insights into various economic indicators for the 2024-25 fiscal year (April-March), as well as projections for the next financial year. It often reflects the government’s priorities and gives an early indication of the likely direction of the forthcoming Budget.
What is the Economic Survey?
The Economic Survey is an important document that typically precedes the Union Budget presentation. It not only reviews the current economic year but also provides an outlook for the coming fiscal year. The first Economic Survey was introduced in 1950-51 as part of the budget documents. However, in the 1960s, it was separated from the Budget and began to be presented a day before the Budget each year.
The Survey serves as a precursor to the Union Budget, often offering clues about the fiscal policies, revenue, and expenditure proposals, as well as potential reforms that may be outlined in the Budget speech.
State of the Economy
India’s economy grew by 5.4 percent in real terms during the July-September quarter of the 2024-25 financial year. However, this growth was lower than the Reserve Bank of India’s forecast of 7 percent. The government’s growth forecast for 2024-25 stands at 6.4 percent, while the RBI had revised its estimate to 6.6 percent, down from 7.2 percent.
Despite the slower growth in the first two quarters of the year, the Indian economy saw robust growth in the previous financial year. In 2023-24, India’s GDP grew by an impressive 8.2 percent, maintaining its position as the fastest-growing major economy globally. In comparison, the economy grew by 7.2 percent in 2022-23 and 8.7 percent in 2021-22.
Budget Session 2025
The Budget session of Parliament is set to continue from January 31 until April 4. The Union Budget for the financial year 2025-26 will be presented on February 1. On Budget day, Finance Minister Nirmala Sitharaman will deliver her budget speech in the Lok Sabha at 11 am, outlining the government’s fiscal policy, revenue and expenditure proposals, taxation reforms, and other significant announcements.
