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Economic Survey 2024-25: Key Highlights on India's Economy and Energy Sector

The Economic Survey 2024-25 forecasts a growth trajectory for India’s economy, with GDP expected to grow between 6.3% and 6.8% in FY26, and real GDP estimated to rise by 6.4% in FY25, aligning with the country’s decadal average.

The survey also reports a positive outlook on the Gross Value Added (GVA) for FY25, predicting a 6.4% growth. Globally, the economy is projected to grow modestly at around 3.2% over the next five years, according to the IMF. Retail inflation has moderated to 4.9% from 5.4% in the previous year, indicating controlled price movements.

The banking sector has seen a significant improvement, with gross NPAs dropping to a 12-year low of 2.6%. Moreover, the unemployment rate has improved dramatically from 6% in 2017-18 to 3.2% in 2023-24, signaling a robust job market.

Regarding the energy sector, the survey highlights a strong performance in renewable energy, with capacity addition in solar and wind power rising by 15.8% YoY by December 2024. Renewable energy now comprises 47% of India's total installed power capacity. To achieve the target of net-zero emissions by 2070, the survey emphasizes the need for extensive investment in grid infrastructure and the secure sourcing of critical minerals.

It also discusses the importance of low-emission thermal power technologies like advanced ultra-supercritical plants and the pivotal role of nuclear energy as a stable alternative to fossil fuels.

Additionally, it underscores the need for R&D in battery storage and sustainable waste disposal related to renewable energy systems. The Economic Survey also calls for elevating the "Mission LiFE" initiative into a mass movement to promote environmental sustainability.