India’s GDP To Grow By 7%: Economic Survey

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New Delhi: According to the 2024 Economic Survey presented on Monday, India’s real gross domestic product (GDP) is projected to grow between 6.5 per cent and 7 per cent for 2024-25, reflecting a swift recovery from the COVID-19 pandemic.

Finance Minister Nirmala Sitharaman unveiled the $576 billion budget for the current fiscal year to parliament on Tuesday, which runs until March, focusing on employment, skill development, micro, small, and medium enterprises, and the middle class.

Minister Sitharaman stated that the government will allocate 2 trillion rupees ($24 billion) for job creation over the next five years.

Last year, the Bharatiya Janata Party (BJP)-led government had a budget of Rs 45 trillion ($537.8 billion). Experts have previously noted that India needs to prioritise agriculture, defence, education, infrastructure, and social infrastructure.

Centre for Digital Economy Policy Research President Jaijit Bhattacharya highlighted the urgent need for actions to address climate change, improve irrigation, enhance food storage, develop factory-based food production, and create flood-resistant cities.

Bhattacharya also stressed the significance of promoting local industry by increasing customs duties on certain products and investing more in defence due to geopolitical challenges. Additionally, he advocated for increased investment in technology.

Regarding coalition demands, President Jaijit stated that they “will be met to an extent” as they aim to foster industrial development and job creation.

The budget aims to continue previous efforts to reduce the fiscal deficit and strengthen the economy, with a focus on addressing food inflation and enhancing social safety nets.

Finance Minister announced assistance to Andhra Pradesh and Bihar, where regional parties are allies of the BJP-led federal government.

Economic expert Abhijit Mukhopadhyay suggested that the budget would likely maintain the status quo, featuring social welfare schemes with modest funding and aggressive fiscal reforms aimed at reducing the deficit by cutting long-term spending in health and education.