Eco Survey cautions against meaningful market correction in 2025

India’s real GDP is estimated to grow by 6.4 per cent in the financial year 2025. This was projected in the Economic Survey presented by the Union Finance Minister Nirmala Sitharaman in both the Houses of Parliament on Friday.The Economic Survey stated that the country has displayed steady economic growth supported by the agriculture and services sector. It mentioned that rural demand is improving on the back of record Kharif production and favourable agricultural conditions. The survey highlights that the manufacturing sector faced pressures due to weak global demand and domestic seasonal conditions. Private consumption remained stable, reflecting steady domestic demand. The survey mentioned that fiscal discipline and strong external balance supported by a services trade surplus and healthy remittance growth contributed to macroeconomic stability.
The Survey highlights that the country’s GDP at constant (2011-12) prices grew by 6.7 per cent in Quarter 1 and 5.4 per cent in the financial year of 2025. This implied a real GDP growth of 6 per cent in the first half of the current fiscal.
Sounding a note of caution on the elevated stock market valuation, the Economic Survey said any correction in the US markets could have a cascading effect in India, which has witnessed increased participation from young investors post-Covid. Over the past few years, retail participation, especially from young investors, has significantly increased in the equity markets. Investor participation has grown from 4.9 crore in FY20 to 13.2 crore as of December 31, 2024.
Later, addressingh the press conference Dr. V. Anantha Nageswaran, the Chief Economic Advisor,said,#WATCH | Delhi | Chief Economic Advisor, Dr. V. Anantha Nageswaran says, "...We call Agriculture the sector of the future, as there is enough scope to raise the contribution of agriculture by 0.75%–1% in terms of GDP growth." 

#WATCH | Delhi | Chief Economic Advisor, Dr. V. Anantha Nageswaran says, "...We call Agriculture the sector of the future, as there is enough scope to raise the contribution of agriculture by 0.75%–1% in terms of GDP growth...The area under micro irrigation has gone up by 3… pic.twitter.com/sSyAD3Armv

— ANI (@ANI) January 31, 2025

The Economic Survey of India is a pre-budget document that reviews the developments in the Indian economy over the past financial year, summarises the performance on major development programmes, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term.