India's Economic Surge: Aiming for Robust Growth by 2047

The Economic Survey 2024-25 forecasts India's GDP growth between 6.3% and 6.8% for FY26, emphasizing strong macroeconomic fundamentals, stable external reserves, and increased formal employment. However, challenges like global uncertainties and price fluctuations persist. Achieving 'Viksit Bharat' by 2047 requires sustained 8% growth per year.

India's economy is anticipated to expand between 6.3% and 6.8% in the fiscal year 2025-26, according to the Economic Survey 2024-25, presented in Parliament before the union budget unveiling. The survey underscores robust economic fundamentals, buoyed by a stable external account, fiscal consolidation, and strengthened private consumption.

The government aims to bolster industrial growth by focusing on research and development, micro, small, and medium enterprises, and capital goods, enhancing productivity and global competitiveness. Food inflation is projected to ease in Q4 FY25, supported by seasonal declines and favorable harvests, though international price increases could threaten stability.

India's foreign exchange reserves remained strong, backing 90% of external debt and offering over ten months of import cover. Stability in capital flows and a significant rise in formal employment contribute to the country's economic strength. Nevertheless, global uncertainties, adverse weather, and international economic fluctuations pose persistent challenges.

The survey also indicates that to achieve 'Viksit Bharat' by 2047, India must sustain a growth rate of approximately 8% annually. Despite an impressive 8.2% growth in 2023-24, the current fiscal year sees a moderate pace, with the RBI downgrading its growth forecast due to slower-than-expected GDP progress in initial quarters.

(With inputs from agencies.)