PR No – 56
31st January, 2025
New Delhi
Economic Survey 2024-25
Rebound in agriculture, robust domestic demand, strategic fiscal management, and ongoing business reforms drive economic growth in 2024-25, says PHDCCI
We are happy to note that the India’s economy is displaying steady economic growth, demonstrating resilience in the face of steady yet uneven global growth, slowdown in global manufacturing, risk of synchronised global price increases, geopolitical tensions, and trade policy risks, said Shri Hemant Jain, President, PHD Chamber of Commerce and Industry in a press statement issued here today.
The Economic Survey indicates that there are many upsides to domestic investment and output growth. The fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation and stable private consumption, said Shri Hemant Jain.
It is highly appreciable that our economy is on a strong footing and is growing at around 8% (average) for the period from 2021-22 to 2023-24, said Shri Hemant Jain.
Government reforms to boost agriculture are highly appreciable. The agriculture sector is expected to rebound to a growth of 3.8% in FY25, supported by improved agricultural prospects and softening of food inflation pressures over the course of the year, said Shri Hemant Jain.
To unleash the strength of small enterprises, it is essential to formalize these industries to enable increased access to financial resources through formal channels and bolster their growth, said Shri Hemant Jain.
We are happy to note that gross fixed capital formation (GFCF) (at constant prices) is estimated to grow by 6.4% for FY25, which will support the infrastructure development in the country, said Shri Hemant Jain.
At the external front, exports remain robust and the external sector indicators such as current account (CAD) deficit to remain relatively contained at 1.2% of GDP in Q2 FY25, said Shri Hemant Jain.
It is encouraging to note that unemployment for individuals aged 15 years and above has steadily declined from 6% in 2017-18 to 3.2% in 2023-24, driven by the government’s push for employment creation, said Shri Hemant Jain.
On the domestic front, rebounding rural demand augurs well for consumption, which will stimulate private investment and overall economic activity. Investment activity is expected to pick up, supported by higher public capex and improving business expectations, said Shri Hemant Jain.
The Survey projects a real GDP growth of 6.4% in FY25 and growth in FY26 to remain between 6.3% and 6.8%, said Shri Hemant Jain.
Going ahead, we expect a stable macro-economic environment to provide an upside to near-term growth. Overall, India will need to improve its global competitiveness further, through grassroots-level structural reforms and deregulation to reinforce its medium-term growth potential, he said.
*END*
Warm Regards,
Media Division, PHDCCI