Just days ahead of the interim budget announcement, a review report by the finance ministry says that the Indian economy is likely to see a GDP growth of nearly 7% in FY25.
Since this is an interim budget, which is only a vote on account ahead of the general elections, there won't be an Economic Survey this year. Instead, the finance ministry has released a report 'Indian Economy–A Review'. The Economic Survey will be released before the full budget after the elections.
The Finance ministry in its report 'Indian Economy–A Review' has predicted the GDP growth close to 7% in FY25. The report is authored by officials of from the office of the Chief Economic Adviser V Anantha Nageswaran.
"…the robustness seen in domestic demand, namely, private consumption and investment, traces its origin to the reforms and measures implemented by the government over the last ten years. The supply side has also been strengthened with investment in infrastructure – physical and digital – and measures that aim to boost manufacturing. These have combined to provide an impetus to economic activity in the country. Accordingly, in 2024-25, real GDP growth will likely be closer to 7%," the report said.
Also Read: RBI governor forecasts 7% economic growth and subsiding inflation for India in 2024-25
The report on the pace of physical infrastructure growth, strengthening of balance sheets, improvement in institutional efficiency due to rapidly expanding digital infrastructure, and technological progress picking up pace with increasing overseas collaboration notes that there is "considerable scope for the growth rate to rise well above 7% by 2030".
The Ministry further adds that it is "eminently possible for the Indian economy to grow in the coming years at a rate above 7%" given the strength of the financial sector and "other recent and future structural reforms". The report also identified the elevated risk of geopolitical conflicts as the only concern.
The report further says the country will become a $5 trillion economy in the next three years and can aspire for $7 trillion by 2030.
In the report, the Finance Ministry has also said, "This is not the Economic Survey of India prepared by the Department of Economic Affairs. That will come before the full budget after the general elections."
The last Economic Survey pegged India's GDP growth for FY24 in a broad range of 6-6.8%, depending on the trajectory of economic and political developments globally. The survey's baseline forecast for real GDP growth is 6.5%. The Economic Survey FY22 projected India to grow by 8–8.5%.