Budget 2024: Economy Survey projects GDP growth of 6.5-7%

The Economic Survey 2023-24, released by the Ministry of Finance on Monday, projects a real GDP growth of 6.5-7% for the financial year 2024-25 (FY25). The survey adopts a conservative stance, acknowledging higher market expectations while emphasizing balanced risks.

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"The Survey conservatively projects a real GDP growth of 6.5–7 per cent, with risks evenly balanced, cognisant of the fact that the market expectations are on the higher side," stated the Economic Survey 2023-24.

The survey highlights the positive outlook for the economy, noting that the momentum from FY23 has continued into FY24 despite various global and external challenges. "India’s economy carried forward the momentum it built in FY23 into FY24 despite a gamut of global and external challenges. The focus on maintaining macroeconomic stability ensured that these challenges had minimal impact on India’s economy," the survey mentioned.

The Economic Survey reports that India's real GDP grew by 8.2% in FY24, marking over 7% growth for the third consecutive year. This growth was driven by stable consumption demand and steadily improving investment demand. On the supply side, gross value added (GVA) at 2011-12 prices grew by 7.2% in FY24, reflecting broad-based growth.

Additionally, net taxes at constant (2011-12) prices grew by 19.1% in FY24, supported by strong tax growth at both central and state levels, and the rationalisation of subsidy expenditure. This contributed to the difference between GDP and GVA growth in FY24, as detailed in the survey.

The Economic Survey 2023-24 thus underscores a bright economic outlook for India, projecting sustained growth amid global challenges.