Inflation reduced, 6.8% growth expected in 2026 too, know what is in Economic Survey
The Finance Minister Nirmala Sitharaman on Friday presented the Economic Review of the financial year 2024-25 in both the houses of Parliament. The review describes the challenges before the country along with an assessment of the performance of the economy in the current financial year
Key highlights of the Economic Review of the financial year 2024-25
The Indian economy is expected to grow at the rate of 6.3-6.8 percent in FY 2026. Due to various initiatives and monetary policy measures of the government, retail inflation in India has come down from 5.4 percent in FY 2024 to 4.9 percent in FY 2025 (April to December).
1.The Economic Survey says that the fundamentals of the Indian economy remain strong with strong external account and stable private consumption.
2.High public capital expenditure and improving business expectations are expected to accelerate investment activity.
3.Food inflation is expected to ease in the fourth quarter of FY25 with seasonal reduction in vegetable prices and arrival of Kharif crops. The Economic Survey said that the government's administrative measures to increase buffer stocks of food items, release of food items in the open market and easing imports in case of supply shortages have been helpful in keeping inflation stable.
4.India's economic prospects for FY26 are balanced. Growth headwinds include increased geopolitical, trade uncertainties. Strategic, prudent policy management and strengthening of domestic fundamentals will be required to deal with global headwinds.
5.The Economic Survey 2024-25 said that India needs to improve its global competitiveness through ground-level structural reforms and deregulation.
Also Read: Economic Survey 2025: Finance Minister presented the Economic Survey in Parliament
6.India needs to improve its global competitiveness through ground-level structural reforms, deregulation. The Economic Survey said that despite tightening of monetary policy in many countries, the situation in the global economy has remained flexible. This flexibility has been reflected in the headline and main inflation rates in FY24 and the current year. The survey said that changes in food grain production in emerging economies like Brazil, India, China have curbed global food inflation.
7.Inflation risk from high commodity prices in FY26 seems limited, geopolitical tensions still pose a risk
Also Read: Budget Session 2025: President expressed grief over Mahakumbh accident, said…
8.There has been a significant improvement in basic amenities including sanitation and availability of information and communication technology (ICT), which shows a positive trend in the development of school infrastructure.
9.The Economic Survey has suggested that focused research is needed to develop weather-friendly varieties to increase the production of pulses, oilseeds, tomatoes and onions. The survey also suggests better agricultural practice training to farmers and high frequency price monitoring data to monitor rising prices of food commodities.
.