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Below the Perspective on Economic Survey 2024-25 by Mr. Vivek Rathi, National Director, Research Services, Knight Frank India

“Economic survey 2024-25 sets its tone for policy focus to aid economic growth despite the current domestic and global headwinds. The GDP growth projections are conservative at 6.3% - 6.8% for FY 2026, however, the government hints at continuing its commitment to contain fiscal deficit within the target.  Inflation is expected to remain within the target range, supported by prudent fiscal and monetary policies. The easing of food inflation in the latter part of FY25, due to seasonal factors and the Kharif harvest, further reinforces this stability.

Private consumption remains stable, underpinned by strong macroeconomic fundamentals. The significant growth in formal employment, with EPFO subscriptions more than doubling from 61 lakhs in FY19 to 131 lakhs in FY24, highlights expanding labour market and improvement in consumer confidence. Additionally, the survey emphasizes the need for corporate wage reforms to stimulate household consumption and boost savings, addressing wage stagnation to enhance purchasing power.

In the infrastructure and logistics sector, substantial investments in roads, railways, ports, and airports aim to enhance connectivity and reduce logistics costs. The progress of NMP and NIP has been positive and is likely to continue focusing on both ongoing and new projects. Initiatives like the PM Gati Shakti plan are set to revolutionize logistics efficiency by integrating various modes of transport. The emphasis on sustainable and green infrastructure development, including renewable energy and urban transport systems, reflects a forward-thinking approach that balances development with environmental stewardship.”

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