Union Budget 2025 Economic Survey: 'Globalisation A Thing Of Past', says CEA Nageswaran

FM Sitharaman will present the Economic Survey 2024-25 soon after the President’s address in the Parliament at 11 am today. The presentation will be live-streamed on Sansad TV and PIB India’s official YouTube and X (formerly Twitter) platforms. The live telecast will also be available on DD News.

CEA V Anantha Nageswaran will also hold a press conference on the Economic Survey 2024-25 at 2:30 pm at National Media Centre, New Delhi.

The Economic Survey is a comprehensive survey conducted to review the financial developments of the country in the last fiscal year. The report is prepared by the Economic Division of the Department of Economic Affairs (DEA), Ministry of Finance, under the supervision of Chief Economic Advisor (CEA) and is presented a day before the presentation of the actual Budget. This annual report provides detailed analysis of the economy’s performance, financial indicators for the fiscal year and future projections.

These assessments introduce innovative solutions to resolve critical issues such as poverty reduction, climate change mitigation, infrastructure development, financial sector development and educational advancement.

1. Robust Economic Growth: The Indian economy grew more than 7% for the third consecutive year, indicating resilience amidst geopolitical turmoil.

2. Stellar Performance by banks: The banking sector displayed strong performance with double-digit credit growth, low NPA levels (Non-Performing Assets) and improved asset quality.

3. Green Sector Shines: As per last year's economic survey, the renewable energy sector is expected to create about 3.4 million long and short jobs by 2030.

4. Strong Growth Trajectory in Start-up Space: The Economic Survey pointed out that in 2016, only 300 start-ups were recognised by the Department for Promotion of Industry and Internal Trade (DPIIT). By CY23, this number rose to 1,17,254. Plus, these startups created 12.42 direct jobs.

5. Change in Inflation metrics: The Economic Survey also suggested that core CPI should exclude food inflation figures as "higher food prices are, more often, not demand-induced but supply-induced".

"There is some need for reassurance in terms of longer term policy direction, especially given the uncertainty between FAME II withdrawal and PM e-Drive. We expect most of the focus to be around public transport and conversion of maximum number of travel kms to electric vehicle (EV) rather than just getting EVs on road," said Subhabrata Sengupta, Partner, Avalon Consulting.

"The only area where industry has a demand is uniform 5% GST across battery and EV. However, this would mean clear distinction between EV batteries and other types of batteries. However, focus should be on policy stability rather than shiny new policies every budget," Sengupta added.

"Innovation, inclusion, and investment have always been the foundation of our economic strategy. During this session, as in the past, many significant bills will be discussed in the House. After thorough deliberation, these bills will be enacted into law to strengthen the nation," said PM Modi.

President Droupadi Murmu arrives in Parliament to address the joint sitting of both Houses which marks the beginning of the Budget session.

President Droupadi Murmu arrives in Parliament to address the joint sitting of both Houses, received by Vice President Jagdeep Dhankhar, PM Modi, Lok Sabha Speaker Om Birla and Union Parliamentary Affairs Minister Minister Kiren Rijiju.

President Droupadi Murmu to address the joint sitting of both Houses of Parliament

"My government has started 'Dharti Aaba Janjatiya Gram Utkarsh Abhiyan' for five crore people of the tribal society," said President Murmu.

Addressing a joint sitting of Parliament, President Droupadi Murmu said, "Under the Ayushman Bharat Scheme, it has been decided to provide health insurance to six crore senior citizens aged 70 years and above."

"My government is committed to fulfilling the dream of the middle class of having their own house," said President Droupadi Murmu in her pre-budget speech.

President Droupadi Murmu said that her government has put special emphasis on creating new opportunities for education and employment for the youth.

"My government under the Ayushman Bharat scheme has decided to provide health insurance six crore citizens aged 70 years and above," President Murmu said.

President highlighted that the government is injecting new energy into India’s growth journey. She also announced that the decision to expand the Pradhan Mantri Aawas Yojna aims to provide new homes to an additional three crore families.

President Droupadi Murmu pointed out at women-led development in India, adding that the number of females have increased across sectors including corporates, police, etc.

"It is a matter of great pride for the Parliament that today women in large numbers are flying fighter aircraft, joining Police and also leading corporates in the country...Our daughters are making the country proud by winning Olympic medals," said President Murmu.

During her pre-budget speech, President Droupadi Murmu said that India is moving ahead in every field, including start-ups, sports and space.

"Today our youth is bringing glory to the country in every field from startups to sports to space...India is showing the way to the world in the fields of artificial intelligence and the adoption of technology."

My government has taken several initiatives to promote ease of doing business. She highlighted policies including One Nation One Tax, Make in India, UPI, the Credit Guarantee Scheme for MSMEs and the Mudra Loan Scheme. The President added that increasing the Mudra loan limit to Rs 20 lakh from Rs 10 lakh earlier is benefiting a number of small businesses.

President Droupadi Murmu recognised the government's efforts in the artificial intelligence (AI) space.

"Our aim is to make India a global innovation powerhouse...In the area of artificial intelligence, India AI Mission has been started."

President Droupadi Murmu hailed India's progress in tech world, saying that the country is making its presence as a major global player in digital world.

"Today, India is making its presence felt as a major global player in the field of digital technology...Developed nations of the world are also impressed with the success of India's UPI transactions system...My Government has used digital technology as a tool for social justice and equality," said President Murmu.

"To ensure health services to all citizens, 1.75 lakh Arogyoa Mandir have been established in the country. Looking at the rising number of cancer patients, custom duty on many cancer medicines has been waived off," said President Murmu.

President Droupadi Murmu has mentioned the following sectors in her pre-budget speech:

1. Youth

2. Health & Insurance

3. Artificial Intelligence

4. Start-ups

5. Tax, GST

6. MSMEs

7. Women-Led Development

8. Digital Payments like UPI

9. Railways

10. Space

In her pre-budget speech, President Droupadi Murmu lauded the Modi government’s governance model, "Reform, Perform and Transform", calling it a driving force for development.

“The development of our country stands strong on the three pillars of the Reform, Perform and Transform approach. Today, the world is replicating India’s governance model for development,” said President Murmu.

Markets today: Benchmark indices, Sensex and Nifty, climbs as the countdown to budget begins. FM Nirmala Sitharaman will be presenting her first full year budget under Modi 3.0 administration.

At 12:09 pm, BSE Sensex was trading at 77,228.33, up by over 400 points. While NSE Nifty50 climbed by over 175 points and was trading at 23,425.20 level.

Take a look at key schemes President Droupadi Murmu mentioned in her pre-budget speech:

1. Ayushman Bharat

2. Viksit Bharat

3. IndiaAI Mission

4. 8th Pay Commission

5. PM KISAN

6. PM Awas Yojana

Pradhan Mantri Awas Yojana will be expanded and new homes will be provided to additional three crore families.

Several steps will be taken for economic empowerment of the cooperative sector to create new employment opportunities.

Health insurance to six crore senior citizens aged seventy and above will be provided under the Ayushman Bharat scheme.

India AI mission will be further boosted to make India a global innovation hub.

The government aims to make 3 crore ‘Lakhpati didi’ to encourage women-led development in the country.

Finance Minister Nirmala Sitharaman has tabled the Economic Survey 2024-25 in Lok Sabha. The FY26 GDP growth is projected at 6.3% to 6.8%.

Sensex and Nifty rose for the fourth consecutive trading session ahead of the Union Budget. From the BSE Sensex pack, Nestle India, Titan, L&T, IndusInd Bank and Maruti Suzuki were among the top gainers.

At 1:10 pm, BSE Sensex was up by over 600 points. NSE Nifty was trading at 23,487.65 level, surging by 238 points or 1.02%.

The Economic Survey 2025 tabled by Finance Minister Nirmala Sitharaman in Parliament today said that the Indian economy will grow at 6.3-6.8% in FY26.

According to the Economic Surbey 2025, India's insurance sector received highest foreign direct investments (FDIs) in FY24-25, i.e., 62% of total equity FDI inflows to services sector.

"Pressures in food prices have been driven by factors such as supply chain disruptions and vagaries in weather conditions," the Economic Survey 2024-25 noted. Read more here

Cheer seems to have taken across the D-street after the Economic Survey hailed the Indian stock market among the best-performing markets in the world. Benchmark indices— Sensex and Nifty— surged by over 1% on Friday, ahead of the Union Budget.

The survey also pointed out that the IPO market has a lot to do with this surge. "Equity-based financing has catapulted to popularity, with IPO listings growing six times between FY13 and FY24 and India being ranked first globally in terms of the number of IPO listings in FY24," the survey stated.

The Economic Survey 2024-25, presented by Finance Minister Niramala Sitharaman today, highlighted that private final consumption expenditure (PFCE) at constant prices is estimated to grow by 7.3%. The survey said that this growth will be primarily driven by a rebound in rural demand. Read more here

According to the Economic Survey 2025, India need to reduce its trade costs and improve facilitation to boost exports.

- Trade

- Transport

- Financial Services

- Education

India accounts for 28% of global STEM workforce, 23% of software employees, according to Economic Survey 2025.

The impact of AI on labour market is more prominent in India due to it's size and its relatively low per capita income, the Economic Survey 2025 has highlighted. The survey has asserted that if companies do not introduce AI in a responsible and considerate manner—taking into account its impact on jobs, ethics, and society—there will be strong pressure for governments to step in with regulations and policies. Read more here

Finance Minister Nirmala Sitharaman presented the Economic Survey 2024-25 in the parliament on Friday. The survey pushed for more deregulation and highlighted the need to give more economic freedom to individuals and organisations to drive growth.

Economic Survey 2025 stated that India’s foreign exchange reserves are sufficient to cover 90% of external debt and provide an import cover of more than ten months. This substantial buffer mitigates risks and shields the Indian economy from the crisis arising due to global liquidity tightening, currency depreciation pressures, and trade imbalances. Read more here

Chief Economic Advisor, Dr. V. Anantha Nageswaran speaks about the Economic Survey 2024-25.

Credit Guarantee Scheme for Startups (CGSS) has guaranteed Rs 24.6 crore in loans for women-led ventures. These programmes offer women entrepreneurs financial support, training, and mentorship, empowering them to start and scale their businesses.

As India’s GCC (Global Capability Centre) is expanding rapidly, the ecosystem is expected to grow from 6,500 to over 30,000 by 2030, supported by robust training programs to develop leadership. 

According to the Survey, the number of GCCs in India has grown from approximately 1430 in FY19 to over 1700 in FY24. As per its employability aspect, GCCs in India employ nearly 1.9 million professionals. Read more here

“Increasing income wages is not a moral ask but in self interest of the private sector, as it has a direct impact on aggregate demand,” said CEA Nageswaran on Economic Survey 2025.

"The topic of climate change and energy transition, as well as their international implications and linkages, has figured prominently in the last couple of editions of the Economic Survey. It is no different this time. The topic will be with us at least for another decade or two. This is another area where the government is front and centre, and the private sector will be somewhat peripheral since public goods are not the private sector’s priority," the Economic Survey reads.

Speaking about the Economic Survey 2025, CEA V Anantha Nageswaran termed globalisation a "thing of the past" as nations recalibrate towards domestic priorities. "China is rapidly advancing its market share in critical technologies," he added.

The e-commerce industry's aim to reach an export target of $300 billion by 2030 is hurdled by challenges as per the Economic Survey 2025. The challenges include regulatory frameworks and compliance obligations.

One of the challenges include the unclear role of sellers and e-commerce platform operators. "This requires collaboration between sellers and e-commerce operators at various stages of export and payment processes," the survey adds. Read more here

Chief Economic Adviser (CEA) pointed out that India’s corporate debt market continues to be under-capitalized, especially when compared to global counterparts. Despite some positive growth, the corporate bond market in India remains significantly smaller as a percentage of GDP, standing at just 18%. This is starkly lower than markets in countries like South Korea at 80% and China at 36%. Read more here

The Economic Survey 2024-25 questioned India Inc's "disproportionate rise" in profits while wage growth for workers has moderated. Chief Economic Advisor (CEA) V Anantha Nageswaran noted in the pre-Budget document that "corporate profitability soared to a 15-year peak in FY24, while wages have lagged."

“Increasing income wages is not a moral ask but in self interest of the private sector, as it has a direct impact on aggregate demand, ” CEA Nageswaran said. Read more here

Chief Economic Advisor, Dr V. Anantha Nageswaran says, "The value of trade affected by new import restrictions has surged from $170 billion in 2014- 2015 to over $1.3 trillion today, highlighting a shift towards strategic competition in global trade...Market forces can enhance education quality while expanding irrigation and land pooling could unlock 1% growth in agriculture. Public transport must also play a key role in the energy transition..."

The Economic Survey Report 2025 acknowledged the significant impact of artificial intelligence (AI) in the tech industry, considering it a breakthrough technology. However, the report undermined the viability of this technology, listing a set of challenges that are hampering its impact and utility.

In the context of the large language models (LLMs), the report stated that while the LLMs are capable of acing exams and achieving high test scores, the field is still far from having a model to come up with original, publishable research. The current standards of LLMs have decent small-scale utility but are not practically applicable in large-scale and high-impact roles. Read more here

Indian export sectors need to brace themselves for global trade policy shifts, warned Economic Survey 2025, presented by Finance Minister Nirmala Sitharaman on Friday in the Lok Sabha. With rapidly evolving global trade dynamics guided by gradual shifts towards greater protectionism, India needs to strengthen its competitiveness to get further integrate into global supply chains, highlighted the survey.

The report, prepared by the Chief Economic Advisor to the Finance Ministry, stated, “The country can focus on reducing trade-related costs and enhancing export facilitation to create a more vibrant export sector. This proactive approach will help India continue to thrive in an ever-changing global market.”

Read more here

If technological decoupling (where countries limit tech sharing and collaboration) rises in the world, then some countries will see a 8-12 per cent of GDP loss, the Economic Survey 2025 has stated.

Additionally, the survey has highlighted that if global trade becomes fragmented due to policies such as tariffs, or geopolitical tensions, the global economy could shrink to 0.2 per cent in a limited fragmentation/low-cost adjustment scenario. Further, the loss could reach up to 7 per cent of the GDP (in a high fragmentation/high-cost adjustment scenario). Read more here

Highlighting the insufficient climate finance allotted at the recent COP29 summit, Chief Economic Adviser V Anantha Nageswaran criticised the lack of commitment that developed countries exhibit in helping developing countries to meet climate goals.   

“With the developed countries also falling short of their Nationally Determined Contributions (NDCs) by about 38%, their actions do not reflect the historical responsibility or the leadership in meeting their obligations. The lack of commitment and insufficient delivery of the means of implementation, as mandated in the Paris Agreement, will make the low-carbon transition in developing countries more challenging,” said Nageswaran. Read more here

India’s electronics sector has been dynamic regarding domestic production, exports and imports in the last decade. The domestic production of electronic goods has increased substantially from Rs 1.90 lakh crore in FY15 to Rs 9.52 lakh crore in FY24, growing at a CAGR of 17.5 per cent.

The country has also drastically reduced its dependence on smartphone imports, with 99% now manufactured domestically. In FY24, the country produced approximately 33 crore mobile phone units, with over 75% of the models being 5G enabled. The key drivers of growth have been the large domestic market, the availability of skilled talent, and low-cost labour.

According to the Survey, India lags in R&D, with a significant gap across major sectors, the gross expenditure on research & development (GERD) in India has increased from approximately Rs 60,196 crore in FY11 to about Rs 127,381 crore in FY2120.

In the USA, the private sector leads, with companies like Google and Amazon accounting for about 70 % of R&D while China, on the other hand, has a combination of major government funding with rising private sector involvement, as per the survey. Read more here

The future electric vehicle (EV) rules must increase their breadth of coverage in order to meet the growing industry needs. As the demand for EVs grows, so will the reliance on imported components including DC motors, e-motor magnets, and other electrical equipment.

The Economic Survey 2024-25, presented by Finance Minister Nirmala Sitharaman today, highlighted that fundamental shifts in the global economic order combined with China's manufacturing prowess and strategic dominance will have a bearing on the growth projections of India.

"Between 1980 and 2008, global GDP rose to $64trn from $11trn and extreme poverty came down to 18% from 44% due to faster growth in China and India. During this period applied tariff rates across the world came down and trade to GDP share went up. However this trend has ended," said Chief Economic Advisor V. Anantha Nageswaran, who authored the report.

India's energy transition requires a multifaceted approach and cannot focus solely on renewable energy, stated Chief Economic Advisor V Anantha Nageswaran during a press conference following the presentation of the Economic Survey 2024–25 in Parliament on January 31. Read more here

Chief Economic Advisor V Anantha Nageswaran sent a clear message to India Inc. to do more to promote investments, innovation, and employment in the country. Continuing his stance from the last economic survey, Nageswaran is urging India’s private players to open their purse strings.  

The biggest push in the survey was to match profit growth with the pace of employment generation and wage hikes. According to the data, the profit-to-GDP ratio of Nifty 500 companies rose from 2.1% in the financial year 2003 to 4.8% in the last fiscal year. Read more here