Union Budget to be presented tomorrow; economic survey highlights GDP slowdown

Finance Minister Nirmala Sitharaman will present the Union Budget tomorrow. Ahead of the budget, the Finance Ministry released the Economic Survey 2024-25, outlining key economic indicators and projections. The survey, tabled in the Lok Sabha by the Finance Minister, estimates India's GDP growth rate for the next financial year (2025-26) to be between 6.3% and 6.8%, signaling a potential slowdown.

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The forecast suggests that economic growth may be lower than in the past four years. Previously, the Economic Survey conducted on July 22, 2024, had projected GDP growth between 6.5% and 7% for the current financial year. The revised estimate reflects external economic challenges affecting India’s growth trajectory.

The survey also highlighted concerns over the impact of artificial intelligence (AI) on employment, cautioning businesses about job displacement due to automation. Additionally, it pointed to a decline in exports as a major factor slowing GDP growth. The manufacturing sector’s increasing reliance on China was another key issue raised, with the report expressing concerns over its implications for the Indian economy.

As the Union Budget is set to be unveiled, all eyes will be on the government's fiscal policies and measures to boost economic stability. Sitharaman's announcements tomorrow will be crucial in addressing these economic challenges and setting the course for India's growth.