The Economic Survey is a treasure trove of information and we have handpicked a few charts that tell the story of our Economy.
Let’s dive in!
1. Growth is just about there…
- India’s economy is expected to grow by 6.4% in FY25, according to MoSPI’s first advance estimate, while FY26 growth is projected to range between 6.3% and 6.8%.
- The IMF predicts India will hit $5 trillion by FY28 and $6.3 trillion by FY30.
2. Growth Moderation Amid Investment Slowdown
- Real GDP growth slowed in H1 FY25 as capital formation growth dropped from 10.1% to 6.4%.
- Q1FY25 saw lower government spending due to elections and private investment remained subdued amid political factors, global uncertainties, and overcapacity concerns.
3. Real Estate & Housing 🏠
Has the housing boom peaked out? Maybe. The slowdown in housing sales is also reflected in slowing capital formation.
4. Inflation & Prices 📊
Retail inflation eased from 5.4% in FY24 to 4.9% in Apr-Dec 2024, mainly due to lower core inflation.
However, food price volatility, caused by supply chain issues and weather, pushed food inflation up from 7.5% in FY24 to 8.4% in FY25, especially for items like vegetables and pulses.
5.India Faces Growing Climate Challenges
Building climate resilience is of utmost importance as instances of Heatwaves increase significantly.
Developing climate resistant crops would be important to avoid declines in production.
6. Strong Banking Balance Sheets…
India’s banking sector is at a strong footing, with
- Bad loans at a 12-year low of 2.6%,
- Solid capital buffers (CRAR: 16.7%),
- Rising profits. In H1 FY25, bank profits surged 22.2%, with better returns
7. … But moderating growth
Growth has moderated due to high base and regulatory tightening.
- Banks are thriving! NPAs at 2.6%—a 12-year low.
- Credit growth remains in double digits but moderated in H2 FY25. Industrial credit grew 4.4% YoY as of Nov 2024, while personal loan growth stood at 8.8% YoY.
8. FDI 🌍 – High Investments & Repatriation
FDI saw a revival in FY25, with inflows rising from USD 47.2 billion in the first eight months of FY24 to USD 55.6 billion in FY25, marking a 17.9% YoY growth.
9. India’s CAD – huge scope for improvement
- India’s Current Account Deficit (CAD) has remained manageable compared to other G20 nations like Brazil and Australia, facing similar external pressures.
- Private transfers, mainly from remittances, grew from USD 28.1 billion in Q2 FY24 to USD 31.9 billion in Q2 FY25, reflecting the resilience of India’s diaspora.
10. Boosting Innovation: India’s Growing Intellectual Property Ecosystem
- India ranks 6th globally in patent filings, mainly in computer, electronics, mechanical, biomedical, and communication fields.
- Patent (Amendment) Rules 2024 simplify filing, processing, and maintenance.
India is boosting innovation through a strengthened IP ecosystem, simplifying patent and trademark processes, and supporting start-ups with financial assistance. Initiatives like the Start-Up IP Protection Scheme and IP Saarthi Chatbot make it easier to protect idea
11. R&D Investment Needs Boost in India
In India, government entities fund most of the R&D, while in developed and emerging economies, businesses contribute over 50%, with countries like the USA, China, Japan, and South Korea seeing private sector contributions of 70% or more.
In the USA, companies like Google and Amazon account for about 70% of R&D spending. In India, most R&D funding comes from the government, while in developed economies like the USA, China, Japan, and South Korea, businesses contribute over 50%, 70% of R&D spending in the USA.
12. Strong Rise in Female LFPR!
India’s female labor force participation (FLFPR) has risen from 23.3% in 2017-18 to 41.7% in 2023-24, mainly driven by more rural women joining the workforce.
13. SIP on the Rise – Strength of the Common Investor
- The mutual fund sector now has over 10 crore SIP accounts, with cumulative inflows of ₹10.9 lakh crore.
- Monthly SIP flows more than doubled from ₹0.10 lakh crore in FY22 to ₹0.23 lakh crore in FY25.
- These inflows have pushed mutual fund ownership in listed companies to a record 9.5% in Q3 2024, up from 8.7% in FY24.
14.Other Developments in Capital Markets
- ₹11.1 lakh crore raised in primary markets (5% higher than FY24).
- Demat accounts up 33% to 18.5 crore.
- IPOs increased to 259, raising ₹1.54 lakh crore (3x YoY).
- Mutual fund investors doubled to 5.6 crore.
- SIP flows more than doubled to ₹0.23 lakh crore.
Source: Economic Survey 2025
