New Delhi [India]: Finance Minister Nirmala Sitharaman is set to present the Economic Survey 2024-25 in Parliament on Friday afternoon, ahead of the Union Budget 2025-26, which will be tabled on February 1.
The Economic Survey, a key pre-budget document, will be presented in Lok Sabha at 12 PM and in Rajya Sabha at 2 PM. Sitharaman was seen leaving her residence earlier today, heading towards Parliament for the session.
What is the Economic Survey?
The Economic Survey, prepared by the Economic Division of the Department of Economic Affairs under the Chief Economic Adviser, provides a comprehensive overview of India’s economic performance, highlighting key sectoral trends, growth indicators, and an outlook for the upcoming fiscal year.
This document offers critical insights into the state of the economy, setting the stage for budgetary policies and fiscal priorities. It may also provide hints about the government’s economic vision and strategies for the remainder of its third term.
History & Significance of the Economic Survey
The Economic Survey was first introduced in 1950-51 and was originally part of the Union Budget. In the 1960s, it was separated from the budget documents and has since been presented a day before the Budget every year.
Each year, the Survey follows a central theme that reflects India’s economic challenges and responses:
- 2022: ‘Agile Approach’ – Highlighted India’s economic response to COVID-19.
- 2023: ‘Recovery Complete’ – Showcased India’s post-pandemic recovery amidst the Russia-Ukraine conflict and inflationary pressures.
- 2024: ‘Economic Resilience’ – Focused on India’s ability to withstand economic shocks and maintain stability.
The 2025 theme is expected to focus on investment-led growth, employment generation, and reviving private sector participation amid concerns over slowing GDP growth and weak domestic consumption.
Key Economic Indicators Ahead of the Budget
- GDP Growth:
- India’s real GDP grew by 5.4% in Q2 (July-September) of FY24-25, falling below RBI’s forecast of 7%.
- The Q1 growth (April-June) was also slower than expected, raising concerns about economic momentum.
- Consumption & Private Investment:
- Weak private sector investment and consumer spending continue to be major economic concerns.
- The government’s high capital expenditure has yet to yield significant private investment growth.
- Finance Minister Sitharaman’s Record-Breaking Tenure:
- With the 2025 Budget, Nirmala Sitharaman will become the first Finance Minister to present seven consecutive Budgets.
- She has surpassed former PM Morarji Desai, who presented five annual budgets and one interim budget between 1959 and 1964.
Union Budget 2025-26 Timeline
- January 31: President Droupadi Murmu addresses joint parliamentary session.
- January 31 (12 PM): Economic Survey presented in Lok Sabha and at 2 PM in Rajya Sabha.
- February 1 (11 AM): Union Budget 2025-26 presentation by Finance Minister Sitharaman.
- Budget Session: January 31 – April 4 (split into two phases, with a recess from February 14 – March 9).
The Budget 2025-26 is expected to focus on fiscal consolidation, job creation, and reviving private investment, amid slower-than-expected GDP growth and global economic uncertainties.