The much-awaited Union Budget 2025 is set to be presented on February 1, 2025, by Finance Minister Nirmala Sitharaman. Before this, the Economic Survey 2024-25 was tabled in Parliament, offering a comprehensive review of India’s economic landscape. The survey provides insights into GDP growth, fiscal challenges, taxation policies, AI’s impact on employment, and government initiatives.
Economic Growth Projections
The Economic Survey 2025 projects India’s GDP growth at 6.3-6.8% for FY 2025-26. While India remains the fastest-growing major economy, experts emphasize the need for stimulus measures to sustain this momentum. Policymakers are considering tax reforms, enhanced standard deductions, and incentives to boost middle-class spending and domestic consumption.
AI’s Impact on Labour Market
A key highlight of the Economic Survey is its detailed analysis of Artificial Intelligence (AI) and job markets. The report warns that AI-driven automation could disrupt employment, particularly in a labour-intensive economy like India. It suggests that companies should implement AI gradually to avoid widespread job losses and urges policymakers to regulate AI adoption responsibly.
Government Push for Rural Development
The Modi 3.0 government has reaffirmed its commitment to rural development. The Economic Survey highlights initiatives aimed at improving farmers’ income, encouraging crop diversification, and boosting agricultural productivity. Climate resilience measures and allied activities like fisheries and animal husbandry are being promoted to ensure sustainable farming and rural prosperity.
Ease of Doing Business & Taxation Debates
The Economic Survey calls for Ease of Doing Business 2.0, focusing on simplified regulations and business-friendly policies. However, political opposition, including the Congress party, has criticized the government for not addressing GST 2.0 reforms and tax-related concerns.
Smart Cities Mission Progress
Under the Smart Cities Mission, the government has completed 7,500 projects worth ₹1.5 lakh crore, significantly improving urban infrastructure and quality of life. The survey notes that 8,058 projects worth ₹1.64 lakh crore have been planned, reflecting the government’s long-term vision for sustainable urban growth.
Key Takeaways from Economic Survey 2025
- GDP growth projection: 6.3-6.8% in FY 2025-26.
- AI & Jobs: Labour displacement risk, need for responsible AI adoption.
- Taxation: Calls for reforms, opposition criticism of GST 2.0 absence.
- Rural Economy: Government focus on farm income & climate resilience.
- Smart Cities: ₹1.5 lakh crore worth of projects completed.
Expectations from Union Budget 2025
With economic uncertainties, all eyes are on FM Nirmala Sitharaman’s Budget 2025. Key expectations include income tax relief, higher allocations for infrastructure & rural development, and progressive AI policies. The government’s approach will determine India’s economic trajectory in the coming years.
Stay tuned for the Union Budget 2025 updates as the nation awaits key announcements that will shape India’s financial future.