India's FY25 GDP growth will surpass Economic Survey forecast: Industry

Industry bodies on Monday expressed confidence that India's GDP growth will surpass the 6.5-7 per cent forecast by the Economic Survey and hoped that the upcoming Budget will roll out measures to help unlock the country's growth potential.

Reacting to the Economic Survey 2023-24, tabled in Parliament, Chandrajit Banerjee, Director General, CII, stated that it is "pragmatic" in its approach and offers a futuristic vision to move India boldly towards achieving the developed economy status by 2047.
 

"The survey is positive about the India growth story, and I am confident that India's GDP growth for FY25 will surpass the forecast given in the Survey and basis certain conditions, it has the potential to be at 8 per cent," CII President Sanjiv Puri said.
 

Echoing similar sentiments, President of PHD Chamber of Commerce and Industry Sanjeev Agrawal said the Survey conservatively projects real GDP growth of 6.5-7 per cent, with risks evenly balanced and market expectations on the higher side.
 

"However, we believe that the growth will be above such conservative estimates as 8 per cent growth is becoming a new normal for India," said Agrawal.
 

The GDP growth for FY25, which is imminently achievable, is driven by excellent macro-financial management, and a facilitative policy environment, which includes a thrust on capex and inflation control. CII is confident that, going forward, the Indian economy has the potential to achieve 7 per cent plus growth backed by a consensus between the Centre, states and the private sector on the reform agenda, the industry body stated.
 

The CII President expressed support for the reforms agenda proposed in the Survey for the medium term and hoped that the forthcoming Budget would implement some of the measures, which would help unlock the growth potential of the Indian economy.
 

The Survey is spot-on in terms of the six key areas unveiled for Amrit Kaal namely boosting private investment, growth and expansion of MSMEs, which is referred to as India's Mittelstand; agriculture as a growth engine, financing green transition, bridging the Education-Employment Gap and building state capacity and capability. This would fast-track India's dream of realising the long-term vision for Viksit Bharat, stated Puri.
 

According to him, the fact that greater attention should be paid to invigorating the agriculture sector to provide a boost to rural demand has been rightly recognised by the Survey. Similarly, the focus on improving the quality of life in the hinterland and emphasis on the social sector, such as healthcare, would go a long way to empower the marginalised and ensure that every Indian becomes a stakeholder in New India.

The Survey projects India's economic growth at 6.5-7 pc in FY2024-25 versus 8.2 pc in 2023-24.

Indian economy is on a strong wicket and stable footing, demonstrating resilience in the face of geopolitical challenges, it said.

PHD Chamber President Agrawal said the Indian economy has consolidated its post-Covid recovery, ensuring economic and financial stability and is on the path to Viksit Bharat by 2047.

"We are happy to note that the Indian Economy is on a strong wicket and stable footing, demonstrating resilience in the face of geopolitical challenges," he shared.

The Economic Survey indicates that India needs a tripartite compact between the government, the private sector and academia to enhance job creation and skill development, and complete the journey to Viksit Bharat by 2047, said Agrawal.

Stating that government reforms for agriculture are highly appreciable, the PHDCCI President suggested that to boost the sector further, a major thrust is required towards traditional farming practices to generate higher value addition, boost farmers' incomes, create food processing and export opportunities, and make the farm sector more productive for urban youth.

To unleash the strength of small enterprises, it is essential to formalize these industries to enable increased access to financial resources through formal channels and bolster their growth, said Agrawal.

We appreciate the six-pronged growth strategy focusing on private capital formation, public-private partnerships for green transition, MSME support, sustainable agriculture, targeted education and skill policies, and enhancing state capacity for sustained progress, he added.

It is highly appreciable that our economy is on a strong footing and is growing at more than 8 per cent (average) for the period from 2021-22 to 2023-24, said Agrawal.

"We see a very mature take on the outlook for the Indian economy presented today as part of the Economic Survey. While a projected growth rate of 6.5-7 per cent for fiscal 2024-25 may appear a bit conservative, we feel that for a country of the size of India, which has been growing at a fast pace, this growth is encouraging," Ficci President Anish Shah said.

Having said that, let me also add that with many path-breaking reforms such as GST and IBC having now matured, it is time that we look at the next leap on the reforms trajectory that would prepare India for achieving even higher growth, he added.

Assocham Secretary General Deepak Sood described the Survey as a bold document.

"The way Survey has emphasised the need for creating 78.5 lakh jobs annually till 2030 signals the government's resolve to leverage the fourth global industrial revolution, taking advantage of new-age technologies like AI. The industry would join these efforts to steer different technological choices with eyes on creating quality jobs, as pressed upon by the Survey," Sood stated.

Reacting to the Economic Survey's recognition of telecommunications as a pivotal driver of India's digital transformation, GX Group CEO Paritosh Prajapati said the government's decision to allocate 5 per cent of the Universal Services Obligation Fund for telecom R&D is a testament to its forward-thinking approach. This substantial investment positions India at the forefront of the global telecommunications landscape, with the potential to catalyse groundbreaking advancements in 5G and 6G technologies.

"By fostering a climate of innovation and development, this initiative can propel India to become a global leader in the sector. To fully realise this vision, a concerted effort to bolster domestic telecom equipment manufacturing and establish world-class R&D infrastructure is imperative," Prajapati said.