(MENAFN- KNN India)
New Delhi, Jan 31 (KNN) Finance Minister Nirmala Sitharaman presented the Economic Survey 2024-25 in Parliament today, outlining India's economic trajectory and policy priorities.
Notable external factors influencing India's economic environment include major Democratic elections, European economic instability, China's economic deceleration, and US dollar strength.
The banking sector demonstrates remarkable improvement, with the Gross Non-Performing Assets ratio of Scheduled Commercial Banks reaching a 12-year low of 2.6 percent by September 2024.
While the Insolvency and Bankruptcy Code has positively impacted banking sector health, the survey notes ongoing concerns regarding delays in insolvency resolution processes.
On the inflation front, India has witnessed moderation in headline figures, primarily due to decreased core inflation and fuel prices.
However, food inflation remains a challenge, particularly in vegetables and pulses, though projections suggest softening in Q4 FY25 with seasonal adjustments in vegetable prices.
The document sets ambitious development targets, including the annual creation of 78.5 lakh new non-farm jobs through 2030-32, achieving universal literacy, and enhancing educational quality.
It advocates for a balanced approach to energy transition, emphasising electric mobility while addressing skill development needs in emerging technologies like artificial intelligence.
Sectoral analysis reveals strong agricultural performance and robust services growth, while manufacturing faces headwinds from weak global demand. Rural demand shows improvement, supported by record Kharif production.
The comprehensive document, prepared under Chief Economic Adviser V Anantha Nageswaran's guidance, projects real GDP growth at 6.4 percent for FY25, with FY26 growth expectations ranging between 6.3 percent and 6.8 percent.
The survey identifies deregulation as a fundamental driver for domestic growth, particularly crucial given the current global economic landscape characterised by manufacturing slowdowns and geopolitical uncertainties.
The survey also highlights the expanding role of GIFT IFSC in India's financial sector and notes significant growth in insurance and pension markets, though coverage gaps persist.
The survey addresses broader societal concerns, exploring the relationship between work culture and mental health, and examining the complex dynamics between renewable energy and coal consumption.
It also emphasises the importance of building societal trust for economic growth and maintaining fiscal prudence while reassessing India's sustainable current account deficit.
Infrastructure development shows steady progress, with ministries utilising 60 percent of their budgeted capital expenditure during April-November.
The survey also underscores India's strong position in cybersecurity, ranking high in the Global Cybersecurity Index while acknowledging the need to address increased digital risks in the financial sector.
(KNN Bureau)
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