GDP expected to grow at 6.5-7% in FY25: Economic Survey 2023-24

India's economy is projected to grow at a rate of 6.5-7 per cent in the current financial year, according to the Economic Survey for 2023-24 presented by Finance Minister Nirmala Sitharaman, a day ahead of the Budget presentation.

The survey highlighted that domestic growth drivers have continued to support economic growth in FY24 despite an uncertain global economic environment.

"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. As a result, India’s real GDP grew by 8.2 per cent in FY24, marking growth of over 7 per cent for the third consecutive year, 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 per cent in FY24, with growth remaining broad-based. Net taxes at constant (2011-12) prices grew by 19.1 per cent in FY24, aided by reasonably strong tax growth at both central and state levels and the rationalisation of subsidy expenditure. This led to the difference between GDP and GVA growth in FY24."

The Economic Survey, prepared by the Economic Division of the Department of Economic Affairs under the Ministry of Finance and supervised by the chief economic adviser, offers key insights and analysis on the nation's economic health.

The tradition of the Economic Survey dates back to 1950-51, when it was initially part of the budget documents. It was separated from the Union Budget in the 1960s and has since been tabled a day before the budget presentation.

Finance Minister Sitharaman will present the Union Budget for 2024-25 on Tuesday.