Economic Survey 2024-25 Full Document: From GDP Growth Projection & Agri Loan Cap Increase To Dip In Gross NPAs, Here's The Full Text

As the Modi Government prepares to unveil the Union Budget, the insights from the Economic Survey 2024-25 offer a roadmap for sustaining economic momentum.

Despite geopolitical uncertainties and election-driven market volatility, the Indian capital markets have continued to perform strongly.

Source : ABPLIVE AI

Economic Survey 2024-25: Union Finance Minister Nirmala Sitharaman on Friday presented the Economic Survey 2024-25 in Parliament, offering a comprehensive assessment of the country’s economic performance and challenges. The survey, prepared by Chief Economic Adviser V. Anantha Nageswaran and his team, serves as a precursor to the Union Budget and outlines policy directions for the upcoming fiscal year.

Before you check out the full text of the Survey (scroll to the bottom of the article), here are some top highlights:

Growth Outlook For FY26

According to the report, India’s GDP is projected to grow between 6.3 per cent and 6.8 per cent in the financial year 2025-26.

The survey emphasised the resilience of the Indian economy despite global uncertainties and highlighted the need for continued reforms to maintain robust growth.

Agricultural Reforms & Farmer Support Initiatives

The Government has introduced various measures to bolster the agricultural sector and improve farmer incomes. One of the significant steps involves raising the cap for collateral-free agricultural loans from Rs 1.6 lakh to Rs 2 lakh, aimed at providing better credit access to small and marginal farmers.

Additionally, the expansion of the Kisan Credit Card scheme now covers fisheries and animal husbandry, offering broader financial support to rural sectors. The Kisan Rin Portal, launched in 2023, has been instrumental in expediting claims under the Modified Interest Subvention Scheme, leading to more efficient disbursal of funds.

Efforts to promote sustainable farming have also gained momentum. The NADEP composting programme in Madhya Pradesh’s Chhindwara district has emerged as a successful model for turning biodegradable waste into organic fertiliser. Community-led initiatives have played a crucial role in optimising these compost pits, contributing to improved soil health and reducing dependence on chemical fertilizers.

Banking Sector Resilience Amid Emerging Risks

The Economic Survey highlighted that India’s banking system remains stable and well-capitalised. Gross non-performing assets (NPAs) have fallen to a 12-year low of 2.6 per cent. However, the report flagged concerns over unsecured personal loans and credit card defaults, which accounted for 51.9 per cent of new NPAs in retail loans as of September 2024.

The Reserve Bank of India’s Financial Stability Report (FSR) from December 2024 underscored the interconnected risks, noting that many borrowers of unsecured loans also hold secured loans, such as home or vehicle loans. Defaults on smaller loans could potentially impact their entire credit portfolios.

Capital Markets & Wealth Creation

Despite geopolitical uncertainties and election-driven market volatility, the Indian capital markets have continued to perform strongly, according to the survey. This robust performance has facilitated capital formation and increased the financialisation of domestic savings, contributing to wealth creation.

The stock market consistently hit new highs by December 2024, outperforming many emerging market peers. The insurance and pension sectors have also maintained steady growth, with a vision toward achieving universal coverage and strengthening the overall financial ecosystem.

As the Government prepares to unveil the Union Budget, the insights from the Economic Survey 2024-25 offer a roadmap for sustaining economic momentum, addressing financial risks, and fostering agricultural innovation.

Economic Survey 2024-25: Full Text

You can check out the full text of the Economic Survey 2024-25 from the link given below: