Economic Survey 2024-25 Recap: 10 key things you need to know from last year ahead of upcoming release

Economic Survey Recap: India's Ministry of Finance will release its key document, the Economic Survey 2026, as attention turns to Parliament for its tabling. The Economic Survey will provide a detailed analysis of the current financial year ending 2025-26 ahead of the government's Union Budget 2026-27 announcement.

On Thursday, 29 January at 11 am, Finance Minister Nirmala Sitharaman will table the Economic Survey, prepared by the Department of Economic Affairs, before both houses of Parliament- the Lok Sabha and the Rajya Sabha.

Sitharaman will present the Union Budget 2026-27 on Sunday, 1 February 2026.

Here is a recap of last year's Economic Survey (2024-2025).

Here are 10 things you need to know

1. GDP Projection: The Economic Survey 2024-25 projected India's real Gross Domestic Product (GDP) at 6.4% in FY25, supported by agriculture and services growth alongside improving rural demand.

“As per the first advance estimates of national accounts, India’s real GDP is estimated to grow by 6.4% in FY25,” according to the survey.

The outlook for FY26 was described as “balanced”, with risks from geopolitical tensions, trade and commodity price shocks.

“Overall, India will need to improve its global competitiveness through grassroots-level structural reforms and deregulation to reinforce its medium-term growth potential,” according to the Economic Survey 2024-25.

2. Strong agriculture: India's agriculture was expected to rebound with 3.8% growth in FY25, remaining above trend levels. The industry sector was forecast to grow by 6.2% in FY2025, though manufacturing faced challenges from slowing global demand and supply chain disruptions.

“The agriculture sector is expected to rebound to a growth of 3.8% in FY25. The industrial sector is estimated to grow by 6.2% in FY25,” said the survey.

“However, the overall growth was tempered by moderation in industrial growth, particularly in manufacturing, which faced challenges from slowing global demand and supply chain disruptions,” according to the Economic Survey.

The services sector continued to witness robust growth, lifting it close to trend levels.

3. Inflation: Retail headline inflation in the Indian economy softened from 5.4% in FY24 to 4.9% during April-December FY25, aided by several government initiatives and monetary policy measures.

“Rural demand backed by a rebound in agricultural production, an anticipated easing of food inflation and a stable macro-economic environment provide an upside to near-term growth,” according to the report.

Globally, inflation rates declined as central banks tightened monetary policy and supply chains adapted to uncertainty.

“Inflation rates across economies have trended downward steadily, approaching central bank target levels. This has been the result of tighter monetary policy regimes across the globe and supply chains adapting to higher levels of economic uncertainty,” as per the Economic Survey.

4. FDI inflows: India's gross foreign direct investment (FDI) inflows rose to $55.6 billion in the first eight months of the financial year ending 2024-25, compared with $47.2 billion in the same period of FY24.

“Gross FDI inflows during April–November in FY25 are higher than the levels witnessed in the corresponding period of any previous years except FY21. Net FDI inflow declined over this period, primarily on account of the uptick in repatriation, which is higher by 33.2% YoY after a growth of 51.5% in FY24,” according to the Economic Survey 2024-25.

5. Deregulation: The Economic Survey 2024-25 focused on “deregulation” as a critical factor in achieving India's “Viksit Bharat” goal.

“To realise its economic aspirations of becoming Viksit Bharat by the time of the centenary of independence, India needs to achieve a growth rate of around 8% at constant prices, on average, for about a decade or two,” as per the survey.

Deregulation was highlighted as particularly vital for MSMEs, which lack the compliance bandwidth of large enterprises.

“Large enterprises usually find a way around compliance. Management and financial bandwidth are limited for smaller enterprises. Therefore, deregulation is a policy agenda for small businesses,” as per the survey.

6. Infrastructure: The Economic Survey underscored that India's growth ambitions for the next decade require massive investment in infrastructure.

Although the government recognised the importance of continuing the pace of infrastructure building and the need to promote sustainable construction practices, the survey mentioned how “public capital alone cannot meet the demands of upgrading the country’s infrastructure.”

The report mentioned that the country needed to ensure rising private-sector participation in infrastructure via improved capacity of projects, contract management, conflict resolution and project closure, among other things.

7. Unemployment drop: The survey reported a decline in India's unemployment rate, supported by positive trends in labour force participation and the worker-to-population ratio.

“According to the Periodic Labour Force Survey, the unemployment rate has significantly declined over time, alongside positive trends in labour force participation and the worker population ratio,” said the report.

8. AI adoption: The survey highlighted artificial intelligence (AI) as both an opportunity and a significant challenge for labour markets.

“These challenges, along with AI’s experimental nature, create a window for policymakers to act. India’s demographic advantage and diverse economic landscape position it uniquely to benefit from AI,” said last year's Economic Survey.

But the survey also mentioned that to achieve these benefits, the country needed significant investments in education and workforce skilling, supported by enabling, insuring, and stewarding institutions for AI.

“These mechanisms can help workers adapt to changing demands while providing essential safety nets,” it said.

9. Challenge for renewable energy: The Economic Survey mentioned that India faced challenges in deploying renewable energy due to the lack of storage technology and access to critical minerals.

“It faces challenges in deploying renewable energy, particularly due to a lack of storage technology and access to minerals. Given India's vulnerability to climate change, a strong adaptation strategy is essential; the increase in adaptation expenditures from 3.7% to 5.6% of GDP between FY16 and FY22 indicates the prominence adaptation and building resilience play in the development strategy,” said the survey.

10. Importance of Skilling: In efforts to fully capitalise on the Indian demographic, the creation of quality jobs that offer sustainable livelihoods was essential, according to the survey report.

“Further, by prioritising reskilling, upskilling, and new-skilling, the government is aiming to align the workforce with global demands, enhancing both domestic and international employability. Simplifying compliances, promoting labour flexibility, and strengthening workers’ welfare are vital for driving sustainable job growth,” it said.

The survey also mentioned that lowering the fixed costs of doing business through deregulation would create room for enterprises to hire more, in turn increasing the overall employment of the country.