As the Budget session of 2025 kicks off, Prime Minister Narendra Modi and President Droupadi Murmu set the tone by highlighting India’s impressive economic progress and the government’s commitment to key financial reforms. President Murmu’s address on Friday praised the nation’s economic growth and reforms, while Finance Minister Nirmala Sitharaman is set to present the Economic Survey 2025 in both Lok Sabha and Rajya Sabha. This year’s survey will offer an in-depth look at India’s economic performance, touching on areas like slowing growth, the weakening rupee, and softening consumer demand. Meanwhile, the session is expected to be heated, with opposition parties demanding discussions on issues like the Maha Kumbh tragedy and the Waqf (Amendment) Bill. With 16 bills lined up, this Budget session promises to be a crucial one, concluding on February 13.
The Economic Survey is expected to forecast GDP growth for the next fiscal year at around 6.3-6.8%, according to sources.
Authored by Chief Economic Advisor V. Anantha Nageshwaran and his team, the 2024-25 survey will be presented in Parliament later today. India’s GDP is expected to grow at a slower pace of 6.4% in the current fiscal year, the lowest in four years, due to challenges in manufacturing and investment. This is slightly lower than last year’s projection of 6.5-7% and the Reserve Bank of India’s estimate of 6.6%.
Inflation is set to play a crucial role in 2025, and the year ahead could bring more economic challenges.
It’s been a bit of a mixed bag so far—2024 started strong with growth exceeding expectations, even catching the government off guard. But the latter half of the year took a turn, as the economy struggled, sparking a bit of a tug-of-war between the Reserve Bank of India (RBI) and the Finance Ministry. Both are diplomatically navigating who should take responsibility for slowing growth, stubbornly high inflation, and the uncertainty this creates for making key policy decisions. Inflation, in particular, is likely to be a focal point as it shapes the economic landscape going into 2025.
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