Key Highlights
- GDP growth is projected to average around 8% (constant prices) to achieve the Viksit Bharat target by 2047.
- Non‑performing assets of scheduled commercial banks fell to a 12‑year low of 2.6% of gross loans.
- Foreign exchange reserves stood at USD 640.3 billion at the end of December 2024, covering 10.9 months of import requirements.
- Renewable sources now constitute 47% of total installed electricity capacity.
- Retail inflation eased to 4.9% in FY25 (April‑December 2024).
Detailed Insights
The 2025 Economic Survey underscores a decisive shift toward structural reforms aimed at sustaining high‑speed growth, expanding employment, and enhancing rural consumption. The reduction in gross non‑performing assets (GNPAs) to 2.6% reflects improved banking health, while the Insolvency and Bankruptcy Code facilitated the recovery of ₹3.6 lakh crore through 1,068 resolution plans. Foreign exchange reserves have surged to USD 640.3 billion, providing a robust buffer against external shocks.
Sector‑wise performance reveals that the service sector now contributes 55.3% to Gross Value Added (GVA), and the industrial sector is expected to expand by 6.2% in FY25. Renewable energy’s share of installed capacity has risen to 47%, supported by a 15.8% year‑on‑year increase in solar‑wind capacity. Labor market indicators are encouraging, with the unemployment rate declining to 3.2% in 2023‑24.
Policy recommendations stress the need for a sustained 8% growth trajectory, accelerated infrastructure investment, and deeper integration of technology in manufacturing—evidenced by 99% domestic production of smartphones. The Survey also highlights demographic dividends, with 26% of the population aged 10‑24, and emphasizes continued fiscal consolidation, especially in health spending, which rose to 48% of total government expenditure.
Key Concepts
- Gross Non‑Performing Assets (GNPAs): The proportion of bad loans to total bank credit, an indicator of banking sector stability.
- FOREX Reserves: Foreign exchange holdings that serve as a cushion against balance‑of‑payments crises and support import financing.
- Renewable Energy Share: Percentage of total installed electricity capacity derived from non‑fossil sources such as wind and solar.
- Service Sector GVA Contribution: The share of services in the overall gross value added, reflecting structural transformation.
- Viksit Bharat Vision: A long‑term development goal of achieving high‑growth, inclusive, and sustainable prosperity by 2047.