New Delhi | Around 220.11 crore person days of employment has been generated under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) till January 10 in 2024-25, the Economic Survey released on Friday said.

The survey report, which was tabled in Parliament by Finance Minister Nirmala Sitharaman, said 308.9 crore person days of employment was generated in 2023-24, 293.8 crore person days were generated in 2022-23, while 363.3 crore person days were generated in 2021-22. In the COVID-19 pandemic year of 2020-21, 389.1 crore person days of employment was generated.

The report added that multiple efficiency reforms have been introduced to fully utilise the scheme, which includes geotagging before, during and after the work is done.

It said 99.98 per cent payments were made through the National Electronic Fund Management System, wages were transferred under DBT and Aadhaar-based payment has been enabled for 96.3 per cent of the total active workers.

Around 99.23 per cent of total successful transactions for wage beneficiaries was processed through the Aadhaar Payment Bridge System (APBS) in December 2024 and social audit units were set up in 28 states and Union territories, the survey said.

It said the MGNREGS, which started as a wage-employment scheme, has evolved into a durable rural asset creation programme for sustainable livelihood diversification.

The scheme has been converged with various initiatives, including NutriGardens with the National Rural Livelihood Mission (NRLM), fodder farms with the Department of Animal Husbandry and Dairying (DAHD), horticulture with the Ministry of Agriculture, medicinal plantations with the Ministry of Ayush, gram panchayat buildings with the Ministry of Panchayati Raj, community sanitary complexes with the SBM-Grameen, construction of anganwadi centres with the Ministry of Women and Child Development, promoting sericulture plantations with the Ministry of Textiles, supporting rubber plantations with the Rubber Board (Ministry of Commerce), promoting aquaculture in ponds and farm ponds with the Department of Fisheries, rural roads with the Pradhan Mantri Gram Sadak Yojana and all-weather roads with the Border Roads Organisation (BRO) for border areas.

Apart from these, convergence has also been made at the state level with different state departments, such as forest, agriculture, horticulture, tribal development departments and others, for the implementation of development projects in rural areas.

Under the Deendayal Antyodaya Yojana -- National Rural Livelihood Mission (DAY-NRLM), a flagship poverty-alleviation programme -- 10.05 crore rural poor households have been mobilised into 90.9 lakh self-help groups (SHGs).

Pushing financial inclusion, 1.37 lakh SHG women members have been positioned as banking correspondent Sakhi and Rs 49,284 crore capitalisation support provided to SHGs, while Rs 9.85 lakh crore of bank credit has been accessed by SHGs.

New Delhi | Energy transition in the world runs through China, stated the Economic Survey 2024-25 noting that the neighbouring nation has huge manufacturing capacity of renewable energy equipment to drive that in the world.

The dominance of China in the environmental goods sector deserves serious consideration, noted the document tabled in the Parliament on Friday.

According to the document, the world navigates the challenges of climate change, the road to energy transition runs through China.

Over the last decade, global solar photovoltaic cell (PV) manufacturing capacity has increasingly moved from Europe, Japan and the United States to China, which has invested more than USD 50 billion in new PV supply capacity – ten times more than Europe, it noted.

China's share of solar panels (polysilicon, ingots, wafers, cells, and modules) exceeds 80 per cent in all the manufacturing stages. Interestingly, this is more than double the China's share of global PV demand.

In addition, it stated that the country is home to the world's top 10 suppliers of solar PV manufacturing equipment.

While this has been a major contributing factor in bringing down the costs of solar PV equipment worldwide, the level of geographical concentration in global supply chains also creates supply disruption risks that must be kept in mind.

About 60 per cent of the world's wind installed capacity is sourced from China. China also houses nearly 80 per cent of the world's battery manufacturing capacity, pivotal to the energy transition.

In 2022 alone, China allocated USD 546 billion towards various investments in solar and wind energy, electric vehicles, and battery technologies vis-à-vis US and EU investments in these sectors, which amounted to USD 321 billion in the same year.

A projection of the installed capacity in 2030 (as compared to 2020) shows that the share of renewable energy, especially solar and wind, in the installed capacity is likely to increase substantially.

In contrast, the share of coal and lignite is likely to fall sharply, it stated.

China, the United States, the EU, and other G7 economies produce more than 50 per cent of global greenhouse gas emissions. All have target dates of 2050 to reach net-zero emissions.

These economies depend heavily on each other in the trade of environmental goods and technologies central to developing renewable energy and reducing emissions.

Hence, it stated that trade conflicts between these economies will pose significant risks to the green energy transition, imposing huge costs on the global economy.

New Delhi | The Economic Survey on Friday highlighted that under the Smart Cities mission, nearly 7,500 projects worth Rs 1.5 lakh crore have been completed so far.

The mission, which was launched in 2015, aims to develop smart cities with essential infrastructure, good quality of life and a sustainable environment, it noted.

"As of 13 January 2025, 8,058 projects worth 1.64 lakh crore have been proposed, with 7,479 projects worth 1.50 lakh crore completed," said the survey, which was tabled in Parliament on Friday.

The mission was launched on June 25, 2015, by Prime Minister Narendra Modi. It aims to enhance the quality of life in 100 selected cities by providing efficient services, robust infrastructure, and a sustainable environment.

According to the Ministry of Housing and Urban's website, the objective of the mission is to promote sustainable and inclusive cities that provide core infrastructure and give a decent quality of life to its citizens, a clean and sustainable environment and application of 'Smart' Solutions.

Some of the core infrastructure elements in a Smart City would include adequate water supply, assured electricity supply, sanitation, efficient urban mobility and public transport, affordable housing, robust IT connectivity and digitalisation, good governance, sustainable environment, safety and security of citizens, health and education.

The strategic components of the Smart Cities Mission are city improvement (retrofitting), city renewal (redevelopment) and city extension (Greenfield development) plus a pan-city initiative in which Smart Solutions are applied covering larger parts of the city.

New Delhi | The Economic Survey on Friday called for addressing regulatory and compliance obligations to promote the country's exports through the e-commerce medium.

It said India's e-commerce exports hold immense potential to grow significantly and become a key contributor to the country's GDP.

"The e-commerce export ecosystem in India presents opportunities for growth alongside a few challenges related to regulatory frameworks and compliance obligations," the survey said.

Citing an example, it said the roles of sellers and e-commerce platform operators are not yet clearly defined.

"This requires collaboration between sellers and e-commerce operators at various stages of export and payment processes," it added.

It also said that customers are increasingly preferring customised products from skilled artisans, and India can leverage its rich tradition of handcrafted items to meet this demand.

"Expanding data connectivity, increased penetration of smartphones, a rise in availability and use of digital wallets and safer online payments, increased customers' income levels and growing familiarity with digital shopping platforms have provided an impetus to India's e-commerce exports," it said.

According to a report, the global B2C (business to consumer) e-commerce market is expected to grow from USD 5.7 trillion in 2022 to USD 8.1 trillion by 2026.

India's B2C e-commerce market was worth USD 83 billion in 2022, and it is anticipated to grow to USD 150 billion by 2026, showing a CAGR of 15.9 per cent.

However, by current market size, India's e-commerce market makes up a small fraction, about 1.5 per cent of the global market, and it is projected to stay around 2 per cent in the coming years.

The survey said that the government's E-Commerce Export Hub (ECEH) initiative aims to revolutionise the country's cross-border e-commerce.

These hubs connect SMEs, artisans, and One District One Product (ODOP) producers to global markets, boosting logistics efficiency and economic inclusion in Tier 2 and Tier 3 cities.

On foreign direct investments (FDI), the survey said despite the short-term volatility in global markets, triggered by factors such as inflationary pressures, rising interest rates in developed economies, and geopolitical tensions, the long-term outlook for FDI in India remains favourable.

"India remains a strong destination for FDI, ranking high in greenfield project announcements and international project finance deals. However, the country has to pay heed to numbers," it added.

As per the data published by RBI, net FDI to India during the first eight months of FY25 stood at USD 0.48 billion compared to USD 8.5 billion in the corresponding period of FY24.

Commenting on the survey, Rudra Kumar Pandey, Partner, Shardul Amarchand Mangaldas & Co, said that the government should also focus on expediting the development and expansion of industrial parks to promote investments.

"Lastly, to keep up with the pace of the technology market in the world, India needs to step up in terms of increased budget allocation, tax incentives and favourable policies for developing technology infrastructure and promoting further technology advancement in spheres of artificial intelligence, IoT (Internet of Things) etc., which will boost FDI in the technology sector," Pandey said.

Debjani Aich, Partner at IndusLaw, said the four labour codes have been pending for over four years, and there is an expectation that the codes should be implemented at the earliest because that is what actually labour reform is going to be about.

New Delhi | The Economic Survey 2024-25 tabled in Parliament on Thursday suggested that while the expansion of rail network has come down by approximately 10 per cent, the production of rolling stock such as wagons and locomotives has increased as compared to the April-November period of previous financial year 2023-24.

The Survey showed that in FY24 (April-Nov), while 2,282 km of rail network was commissioned, it came down to 2,031 km for a similar period in FY25.

However, production of wagons jumped from 22,042 to 26,148 and locomotives from 968 to 1042 for the said period.

According to the Survey, while in the whole of the financial year of 23-24, 41 Vande Bharat trains were introduced, FY 24-25 witnessed 17 new Vande Bharat trains up to October for various destinations in the country.

At present, a total of 68 Vande Bharat trains are operational in the country.

It further suggested that while in FY 23-24, 456 Vande Bharat coaches were produced, in FY 24-25 the figure stood at 228 up to October.

Highlighting the recent initiatives in the rail system, the survey said by October 31, 2024, 91 Gati Shakti multi-modal Cargo Terminals were commissioned and 375 MW of solar and 103 MW of wind was commissioned.

"Four hundred thirty-four projects valued at Rs 11.17 lakh crore have been identified under three railway corridors mapped on the PM GatiShakti portal. Seventeen public-private partnership projects have been completed (for Rs 16,434 crore) and eight (worth Rs 16,614 crore) are going on," the Survey said.

It provided an update on two major railway projects, Mumbai-Ahmedabad High-Speed Rail Project and Dedicated Freight Corridors (DFCs).

"Sanctioned in December 2015, this 508-km project supported by Japan has a revised cost of Rs 1.08 lakh crore. As of October 2024, it has achieved 47.17 per cent physical progress with an expenditure of Rs 67,486 crore," the Survey said.

It added, "As of November 2024, 2,741 km (96.4 per cent) of the planned 2,843 km DFC network has been commissioned. DFCs have transformed logistics in India by facilitating increased freight volumes without passenger train interference."

The Survey noted that the Indian Railways is undertaking several initiatives to enhance passenger experience and station amenities such as 1,337 stations have been identified for redevelopment in Amrit Bharat Station Scheme and work has started in 1,197 of them.

"In the pursuit of enhancing the wellness and welfare of passengers passing through railway stations, 50 Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs) were started in railway station premises. In addition, on November 13, 2024, 18 new PMBJKs were inaugurated, providing affordable medications and healthcare services at the railway stations," the Survey said.

It added, "A new policy for managing mobile catering was introduced on November 14, 2023. As of November 23, 2024, this has resulted in the establishment of 557 Base Kitchens servicing 468 pairs of trains." About other passenger amenities, the Survey stated that Train Indication Boards have been provided at 1,351 stations, Coach Guidance Systems at 866 stations,and Wi-Fi availability at 6,112 stations, thus, enhancing passenger experience.

One Station One Product Scheme is operational at 1,900 stations, featuring 2,163 outlets that benefit 79,380 local artisans by providing sales opportunities for their products, it said.

It also observed Indian Railways' key initiatives to improve signalling systems by replacing mechanical signalling with Electrical/Electronic Interlocking (EI) systems and upgradation to electrical/electronic interlocking systems at 25 out of 62 pending stations in FY25.

It stated that Kavach, the indigenously developed Automated Train Protection system, has seen Rs 1,547 crore investment till November 2024 and the specification version 4.0 was approved on July 16, 2024.

"EI systems have been installed at 227 stations in FY25, increasing the coverage to 3,576 stations. The first Direct Drive Interlocking system was commissioned in November 2024 at Tajpur station," the Survey said.

"ABS (Automatic Block Signalling) is being installed to enhance capacity on high-density routes. Seven hundred twenty route kilometres have been completed this fiscal year, increasing the coverage to a total of 4,906 kilometres," it added.

New Delhi | The government's emphasis has been on improving the quality of life in rural areas to ensure more equitable and inclusive development, according to the Economic Survey 2024-25 that was tabled in Parliament on Friday.

The survey said various measures have been taken in this regard by focusing on infrastructure, encompassing rural housing, drinking water and sanitation, clean fuel, social protection and rural connectivity, along with enhancing rural livelihoods.

The report, tabled in Parliament by Finance Minister Nirmala Sitharaman, said the financing needs of rural households and small businesses are being met through micro-finance institutions, self-help groups (SHGs) and other financial intermediaries.

Taking digitisation and technology to the rural economy has also been a key aspect of the rural development agenda, be it in agricultural activities or governance, the survey said, citing the example of digital land records being created through the SVAMITVA scheme, which it said shows a structural shift in rural land management and individual economic empowerment.

A primary focus has also been on the health parameters of the rural population, with enhanced emphasis necessitated by the COVID-19 pandemic, the survey added.

It highlighted that under the Pradhan Mantri Gram Sadak Yojana (PMGSY), till January 9 this year, 8,34,695 km of road length was sanctioned and 7,70,983 km of road length completed. So far, 99.6 per cent of the targeted habitations have been provided with connectivity.

The survey said 2.69 crore houses have been completed since 2016 under the Pradhan Mantri Awas Yojana-Gramin (PMAY-G), and 68,843 water bodies constructed under the Mission Amrit Sarovar. Around 12.2 crore households have been provided with tap-water connections under the Jal Jeevan Mission as of January 27, while 11.8 crore toilets and 2.51 lakh community sanitary complexes have been constructed under the Swachh Bharat Mission (Gramin) by January 27.

For the development of the Particularly Vulnerable Tribal Group (PVTG) under the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN), a separate vertical has been launched under the PMGSY by relaxing the population norms up to 100 to provide the connectivity to unconnected PVTG habitations.

A total of 8,000 km of road length is targeted to be constructed under this vertical. The implementation period is till March 2028. A total of 1,557 road works of 4,781.44 km of road length have been sanctioned till January 9, the survey said.

New Delhi | A strategic plan for skills and education is essential to leverage the demographic dividend and achieve the 'Viksit Bharat 2047' goals, said the Economic Survey, advocating early vocational training to enable a smooth transition from learning to the job market.

A robust future road-map must prioritise industry-academia partnerships, continuous skill development, and flexible learning models to create a globally competitive workforce, said the Survey, adding that several key areas require focused attention and strategic intervention to achieve this vision of a robust skilling ecosystem.

The Economic Survey 2024-25 which was tabled in Parliament on Friday flags that a key challenge in the skill landscape is the prevalence of low-skilled workers, which is attributable to the quality of educational outcomes across different levels of education.

"Low educational skills in the workforce make a mismatch between their academic qualifications and job market demands. This mismatch has resulted in over 53 per cent of graduates and 36 per cent of postgraduates being underemployed in roles below their educational qualifications," it stated.

The survey suggested that targeted schemes that incentivise skilling and employment creation can help bridge the skill gap and promote job creation through the right incentives.

Aligning skill development programmes with industry needs and adopting a long-term strategy focused on women and girls will prepare them for evolving job opportunities and help India effectively leverage its demographic dividend, it said.

It has also called for reshaping the labour market with an emphasis on women-led development for achieving gender parity and fostering inclusive economic growth.

Early vocationalisation of education may be carried out to improve employability through vocational training, said the survey, adding that policies should prioritise targeted skill development and support for emerging sectors while encouraging transitioning from traditional to non-traditional roles.

With 65 per cent of its population under 35 years and a median age of 28, India's demographic dividend makes it a global talent hub, provided it can cultivate a workforce with employable, industry-relevant skills, according to the survey.

"By creating a skilling ecosystem with a high-quality, globally competitive workforce, India can enhance employability for youth in global job markets. This attracts international investments, stimulates growth, drives innovation, and strengthens India's global economic position," the survey said.

Skill development is key to 'Aatmanirbhar Bharat', ensuring the workforce has the competencies to meet evolving industry demands and global standards, it added.

The survey called for a "strategic plan for skills and education" as essential to leverage the demographic dividend and achieve the 'Viksit Bharat 2047' goals.

Advanced technologies such as automation, AI, and digitalisation are reshaping industries and creating demand for new skill sets. This technological transformation underscores the need for a dynamic, forward-looking strategy that prepares the workforce for emerging opportunities, it said.

Skill mismatch can result from imperfect matching between employers and workers, primarily driven by labour market inefficiencies or an imbalance between aggregate supply and demand for specific skills. When the mismatch is due to the gap between the expected and actual skills of workers, it reflects a broader issue of mis-alignment between the demand for specific competencies and their availability in the labour force, the survey said.

New Delhi | Growth in corporate profits needs to be commensurate with wages to boost the economy, Economic Survey 2024-25 said, noting that sharp disparities between the two pose risk to the economy by curbing demand.

The document tabled in Parliament on Friday noted that while the labour share of GVA (gross value added) shows a slight uptick, the disproportionate rise in corporate profits—predominantly among large firms—raises concerns about income inequality.

A higher profit share and stagnant wage growth risk are slowing the economy by curbing demand, it pointed out.

Sustained economic growth hinges on bolstering employment incomes, which directly fuel consumer spending, spurring investment in production capacity, it stated.

To secure long-term stability, a fair and reasonable distribution of income between capital and labour is imperative, it suggested.

It is essential for sustaining demand and supporting corporate revenue and profitability growth in the medium to long run, it pointed out.

It noted that corporate profitability soared to a 15-year peak in FY24, fuelled by robust growth in financials, energy, and automobiles.

Among Nifty 500 companies, the profit-to-GDP ratio surged from 2.1 per cent in FY03 to 4.8 per cent in FY24, the highest since FY08.

Large corporations, especially in non-financial sector, significantly outperformed their smaller peers in profitability, it pointed out.

However, it stated that while profits surged, wages lagged.

A striking disparity has emerged in corporate India: profits climbed 22.3 per cent in FY24, but employment grew by a mere 1.5 per cent. State Bank of India (SBI) analysis reveals that 4,000 listed companies recorded a modest 6 per cent revenue growth.

At the same time, employee expenses rose only 13 per cent-down from 17 per cent in FY23 - highlighting a sharp focus on cost-cutting over workforce expansion, it stated.

Despite Indian companies achieving a stable EBITDA margin of 22 per cent over the last four years, wage growth has moderated. This uneven growth trajectory raises critical concerns.

Wage stagnation is pronounced, particularly at entry-level IT positions.

Citing an example it stated that Japan succeeded in industrialisation and in becoming a developed economy, despite its defeat in WW II (world war II) through a social contract between the government, the businesses and workers.

It noted that Japanese workers, consumers, and retirees all subsidised industrial development by overpaying for goods and services, by taking home a lower share of national output than their counterparts in the West, and by using a financial system designed to transfer purchasing power from households to businesses.

Japanese companies returned the favour by upgrading the country's manufacturing base, passing along productivity gains to workers, and refraining from excessive executive pay, while the government invested in top-tier infrastructure, it noted.

It noted that driven by robust post-pandemic recovery and increased formalisation, labour market indicators in India have improved substantially in the last few years.

As per Periodic Labour Force Survey (PLFS), the unemployment rate in India has dropped significantly and labour force participation and the worker population ratio have shown considerable improvements.

Additionally, sectors like the digital economy and renewable energy offer vast potential for creating high-quality jobs, which is essential for achieving the Viksit Bharat's vision.

Economic Survey mentions that the growing participation of women in entrepreneurship can propel the country towards higher levels of development by tapping into their latent potential to contribute to economic activities.

To give a fillip to women's entrepreneurship, the government has launched several initiatives in terms of easier access to credit, marketing support, skill development, support to women start-ups, etc.

Schemes and initiatives like PM Employment Guarantee Programme, SANKALP, PM Micro Food Processing scheme, Adivasi Mahila Sashaktikaran Yojana, Swayam Shakti Sahakar Yojna, DAY-NRLM etc. are promoting women-led enterprises by offering women entrepreneurs financial support, training, and mentorship, empowering them to start and scale their businesses.

Economic Survey advocates for fostering an enabling labour regulations environment that supports business growth, creates employment and promotes economic development.

It says that by promoting flexible working hours and removing restrictions on the number of overtime hours workers can perform and the overtime wages they can earn, it can lead to growth for firms, creating more employment opportunities.

It will also safeguard labour rights and allow workers to increase their earnings.

Economic survey notes that the growing digital economy and renewal energy sector are providing enhanced opportunities for job creation.

Both these sectors offer immense potential to increase employment, especially opening opportunities for the women and thereby leading to their financial independence and empowerment.

It suggested that skilling strategy needs to adopt a layered approach to address diverse industry demands and workforce needs effectively.

This new approach could include skills tailored for specific tasks or job roles, targeted at selected groups of workers, and foundational AI skills provided universally to everyone and across all sectors.

By aligning these skill tiers with the aspirations and needs of workers, the strategy can better prepare the workforce for a dynamic job landscape with changing demands. The tiered approach allows for training cost-effectively.

Economic Survey mentions that for creating industry-ready workforce, initiatives like internships in companies (PM Internship Scheme) and public-private partnership for skill development and vocational training will go a long way.

Additionally, by creating a skilling ecosystem with a high-quality, globally competitive workforce, India can enhance employability for youth in global job markets.

New Delhi | The Economic Survey on Friday called for a new strategic trade roadmap for India, along with measures to cut trade costs and enhance export competitiveness amid growing protectionism globally.

It said that much remains to be done to enhance trade competitiveness.

"Global trade dynamics have changed significantly in recent years, shifting from globalisation to rising trade protectionism, accompanied by increased uncertainty. This calls for a new strategic trade roadmap for India," the survey said.

It added that to remain competitive and enhance its participation in global supply chains, India must continue reducing trade costs and improving facilitation to boost export competitiveness.

"The good news is that doing so is entirely in our hands. On its part, the industry must continue to invest in quality," it said adding the country's external sector continued to display resilience amidst global headwinds of economic and trade policy uncertainties.

It emphasised the need to assess the global situation and develop a forward-looking strategic trade roadmap to deal with the evolving global trade dynamics, marked by gradual shifts towards greater protectionism.

"To strengthen its competitiveness and further integrate into global supply chains, 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," the survey said.

As per estimates, India's share of global trade was over 2 per cent in 2023.

During the April-December period of this fiscal year, exports recorded a growth of 1.6 per cent to USD 321.71 billion and imports by 5.15 per cent to USD 532.48 billion.

Trade deficit -- the difference between imports and exports -- during April-December widened to USD 210.77 billion from USD 189.74 billion during the same period of the previous fiscal year.

It noted that disruptions in global trade due to the Red Sea crisis, the Russia-Ukraine war and the recent drought in the Panama Canal, allied with increased protectionist tendencies shown by many countries, have created uncertainties.

The number of non-tariff measures in sectors such as agriculture, manufacturing, and natural resources, that restrict international trade have also increased over the last few years.

The Economic Survey 2024-25 was tabled in the Parliament by Finance Minister Nirmala Sitharaman.

On the steps being taken to increase exports, it said, India is in the process of negotiating a number of free trade agreements (FTAs) with countries and trading blocks.

India is actively working towards negotiating trade deals with top importers such as the EU and the UK.

Services exports from India too have shown a multi-sectoral presence in global exports, with notable contributions across several sectors.

The country's share in global services exports has more than doubled, reaching around 4.3 per cent in 2023 from 1.9 per cent in 2005.

In telecommunications, computer, and IT, India accounts for 10.2 per cent of the global exports market (ranking second largest exporter in the world), reflecting its strong position in IT outsourcing, software development, and digital services.

As the country becomes a hub for Global Capability Centres and continues to innovate, focusing on skill development and strategic policy interventions will be key to sustaining this momentum, it said.

India's total exports reached USD 602.6 billion in the first nine months of 2024-25, highlighting strong trade resilience despite increasing global protectionism.

Commenting on the Survey, Lokesh Shah, Partner, IndusLaw, said it has underscored the importance of enabling businesses to concentrate on their core missions.

Federation of Indian Export Organisations (FIEO) President Ashwani Kumar said that simplification of procedures, reduction in transaction costs and adoption of innovation and technology will help boost export competitiveness.

New Delhi | India's textiles sector faces several challenges despite possessing a complete value chain, said the Economic Survey 2024-25 on Friday, pointing out that the sector has attracted limited FDI, hindering technological advancements and leading to reliance on imported textile machinery.

The dominance of MSMEs limits the textile sector's scale and efficiency, while its fragmented nature increases logistical costs, it said.

The survey also flagged the reliance on cotton, unlike the global shift towards manmade fibre, which limits the domestic textile sector's competitiveness in international markets, stressing the need to focus on manmade fibre along with cotton to improve its global competitiveness.

Highlighting the persistent significant skill gap and hindering productivity and innovation, the survey observed that addressing these challenges is crucial for India to realise its full potential as a global textile powerhouse.

"After having recorded a high of USD 44.44 billion in FY22, India's export of textiles and apparel, including handicrafts, stood at USD 35.87 billion in FY24, compared to export of USD 36.69 billion in FY23. India is looking to diversify its export market to other regions.

"India has traditionally focused on cotton textiles. Globally, manmade fibre (MMF) consumption is dominant. Hence, in order to move towards a higher global MMF share, it is essential to simultaneously focus on MMF along with cotton textiles," said the survey tabled in Parliament by Finance Minister Nirmala Sitharaman.

Technical textiles are another area of potential growth, it said, adding that India's technical textile industry is rapidly growing, ranking fifth globally.

Indian technical textiles market stands at USD 26.8 billion in FY24. India is a net exporter of technical textiles, with exports valuing USD 2.58 billion in FY24. To assist the technical textiles manufacturing ecosystem, the government has introduced several initiatives, including the Production Linked Incentive (PLI) scheme.

"Despite possessing a complete value chain, textiles face several challenges. The dominance of MSMEs limits scale and efficiency, while its fragmented nature increases logistical costs.

"India's reliance on cotton, unlike the global shift towards MMF, limits its competitiveness in the worldwide market. The sector has attracted limited foreign direct investment, hindering technological advancements and reliance on imported textile machinery," the survey said.

New Delhi | Coordinated efforts from the government, private sector, academia, R&D institutions, and financial stakeholders are crucial for India to achieve its goal of becoming a manufacturing powerhouse amid an uncertain global environment, Economic Survey 2024-25 said on Friday.

It also called for "vigorous" focus on deregulation, appropriate skilling and employment strategies, and targeted support for smaller enterprises to improve the competitiveness of the Indian industry and prepare it to weather global challenges.

Slackening global trade and aggressive policies of major economies have affected manufacturing and investment by the private sector.

"In a rather unsupportive global environment, it calls for lasting, synchronised efforts of all tiers of governments, the private sector, the skilling eco-system, academia and R&D institutions, as well, and financial stakeholders to enable India realise its ambition as a manufacturing powerhouse," the survey noted.

The suggestion assumes significance because China is rising as a global manufacturing hub and its impact on the manufacturing aspirations of other nations, as well as the supply of minerals, materials, machinery, and equipment needed for energy transition, pose challenges.

"Amidst this, India is in the middle of a change that represents an unprecedented economic challenge and opportunity," it said.

The survey stressed that China is a dominant force in areas such as energy transition ecosystems as it has gained a strategic advantage by leveraging its competitiveness and economic policy to access and control key resources recognised today as critical for global supply chains.

Hinting about India's dependence on China in certain sectors, the survey said that India sources 75 per cent of lithium-ion batteries from China, and it has near negligible production capacity for key components like polysilicon, ingots, and wafers.

There is a dependency of the world on China for energy transition efforts.

In fact, India has ambitious goals for energy transition despite being one of the lowest per capita emitters of greenhouse gases.

"Dependence on China-made goods to achieve that transition enhances the complexity of the challenge for India," the survey said adding China is a dominant force in the global manufacturing and energy transition ecosystems.

It has gained a strategic advantage leveraging its competitiveness and economic policy to access and control key resources recognised today as critical for global supply chains.

"The effects of the rise of China as a manufacturing colossus are seen in automobile (especially electric vehicles) manufacturing, mining and refining capacity for critical minerals (Copper, Lithium, Nickel, Cobalt, Graphite, etc.) and in clean energy equipment," it said.

To support domestic industry in boosting manufacturing, it suggested the government to accelerate and amplify the deregulation agenda.

"Also, every state in the country can learn from the best practices of other states in different areas so that all progress in unison," it said adding there is a need for focus on industrial strategies appropriate to unique geographies like the North East.

Four states Gujarat, Maharashtra, Karnataka and Tamil Nadu account for about 43 per cent of the total industrial GSVA (Gross State Value Added). In contrast, six states of the Northeast (excluding Sikkim and Assam), account for only 0.7 per cent of the industrial GVA.

Further, it said that it is important that states focus on business reforms on a priority basis so as to achieve buoyancies in some industrial or service sectors where it has natural advantages.

"States should make it easier for businesses to commence operations, to grow and even be closed if deemed inevitable by the entrepreneur," it added.

On research and development, the Survey said in India, not only is the industrial R&D low, but it is also sectorally concentrated.

Drugs and pharmaceuticals led the way, followed by information technology, transportation, defence, and biotechnology. Public sector R&D is primarily driven by the defence industry, followed by the fuels and metallurgical sectors.

Commenting on the survey, Sanjiv Malhotra, Senior Advisor, Shardul Amarchand Mangaldas & Co, said it identifies capacity building and institution building as the need of the hour and thereby requiring government, private sector and academia to work closely.

Rumki Majumdar, Economist Deloitte, said the services industry has been a key driver of growth, while India's exports, despite global challenges, have expanded into new and diverse markets.

New Delhi | Gold prices are expected to decline in 2025 while silver prices may increase, according to Economic Survey 2024-25 tabled in Parliament on Friday.

Citing the World Bank's Commodity Markets Outlook for October 2024, the economic survey highlighted that commodity prices are projected to decrease 5.1 per cent in 2025 and 1.7 per cent in 2026.

The projected declines are led by oil prices but tempered by price increases for natural gas and a stable outlook for metals and agricultural raw materials.

Among precious metals, gold prices are expected to decrease while silver prices may increase. Prices for metals and minerals are expected to decline, primarily due to a decrease in iron ore and zinc prices, the economic survey said.

"In general, the downward trend movement in prices of commodities imported by India is a positive for the domestic inflation outlook," it added.

Meanwhile, the survey said "a global rise in uncertainty has led to fluctuations in the composition of foreign exchange reserves. CY24 saw gold bullion holdings nearing their highest level since World War II, which was largely driven by an accumulation of gold by emerging market central banks".

Gold imports have increased, influenced by higher global prices, early purchases ahead of festive spending, and demand for safe-haven assets.

The survey observed that uncertainty in global markets has led to fluctuations in the composition of foreign exchange reserves, as central banks adjust their holdings to mitigate risks.

Further, the International Monetary Fund (IMF) has noted steady changes are underway in the global reserve system, including a gradual movement away from dollar dominance and a rising role of non-traditional currencies, it said.

The survey suggested that while the projected decline in gold prices may affect investor sentiment, the expected rise in silver prices could provide some support to the bullion market.

As the government prepares for the upcoming fiscal year, it expects to closely monitor price movements of the bullion and their impact on inflation, trade, and foreign exchange reserves.

India, one of the world's largest importers of gold, has traditionally witnessed strong demand for the metal, particularly during the festival and wedding seasons.

Hyderabad | Telangana is the frontrunner with 88 per cent in own tax revenue (OTR) between April - November last year followed by Karnataka and Haryana at 86 per cent each, Economic Survey 2024-25 said on Friday.

Telangana is among the top three states in terms of high irrigation coverage of their gross cropped area with 86 per cent. Punjab tops the chart with 98 per cent followed by Haryana-94 per cent, the survey said.

“For 15 states, OTR accounted for more than half of their total tax receipts, the highest being Telangana at 88 per cent, followed by Karnataka and Haryana at 86 per cent each,” it said.

The Economic Survey cited WE Hub - The Women Entrepreneurs Hub in Hyderabad as “a good example” from the state on how the support of the government can help women's entrepreneurship flourish.

WE Hub was started with the mission to ensure that all women entrepreneurs in the country have access to technical, financial, governmental, and policy support required to start up, scale up, sustain, and accelerate with global market access.

It has raised Rs 177 crore in funding. As many as 6376 start-ups and SMEs have been incubated engaging around 7828 entrepreneurs since inception, it said.

New Delhi | The Ayushman Bharat health-insurance scheme has played a decisive role in the significant reductions observed in out-of-pocket expenditure through an increase in social security and primary health expenditure, with more than Rs 1.25 lakh crore in savings recorded, according to the Economic Survey 2024-25 that was tabled in Parliament on Friday.

The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) has revolutionised healthcare by providing a health coverage to the bottom 40 per cent of India's most vulnerable populations, the survey said.

It covers more than 12 crore families or, approximately, 55 crore individuals and is the world's largest health-insurance scheme, offering annual hospitalisation benefits of up to Rs 5 lakh per family for secondary and tertiary care.

Launched to address health inequities, the AB-PMJAY prioritises the poorest segments of the population based on the Socio-Economic Caste Census 2011, adopting a holistic and need-based approach, the report said.

It asserted that this initiative aligns with India's commitment to the sustainable development goals (SDGs), ensuring that no one is left behind.

As of January 1 2025, more than 36.36 crore Ayushman cards have been issued, the report said.

It added that 30,000 hospitals, including 13,352 private facilities, are empanelled under the scheme. Also, 49 per cent of the cardholders are women and 48 per cent of hospital admissions are utilised by women.

On September 11, 2024, the expansion of the AB-PMJAY was approved to include senior citizens aged 70 and above, irrespective of their socio-economic status.

This initiative provides free health coverage of up to Rs 5 lakh per family, benefitting approximately six crore senior citizens across 4.5 crore families, regardless of income, the report said.

The eligible senior citizens will receive a dedicated Vay Vandana Card to access the scheme's benefits.

Additionally, those already covered under the scheme will get an exclusive top-up of Rs 5 lakh annually for their healthcare needs, separate from their family's coverage.

As of January 15, 2025, more than 40 lakh senior citizens have been enrolled under the scheme, the report said.

Other initiatives, such as the free-dialysis scheme, have benefitted around 25 lakh people, it highlighted.

"The reduction in OOPE goes hand in hand with increased public spending in healthcare, demonstrating progress towards universal health coverage," it stated.

The increase in government spending on health has an important implication for the reduction of the financial hardship endured by households.

In the Total Health Expenditure (THE) of the country between Financial Year 2015 and FY 22, the share of government health expenditures (GHEs) has increased from 29 per cent to 48 per cent, the report said.

During the same period, the share of out-of-pocket expenditure (OOPE) in the THE declined from 62.6 per cent to 39.4 per cent, it underlined.

The government health insurance schemes constitute a 5.87-per cent share in healthcare-financing schemes, out of which social insurance schemes like the Employees' State Insurance Corporation (ESIC), Central Government Health Scheme (CGHS) and Ex-Servicemen Contributory Health Scheme (ECHS) have a 3.24-per cent share.

The government-supported voluntary insurance schemes like the AB-PMJAY, Rashtriya Swasthya Bima Yojana (RSBY), state-specific government health-insurance schemes etc. have a 2.63-per cent share in healthcare-financing schemes, the report noted.

Launched in 2018, Ayushman Bharat represents a paradigm shift from selective health services to a comprehensive continuum of care, addressing prevention, promotion and treatment across primary, secondary and tertiary levels.

By transforming sub-health centres (SHCs) and primary health centres (PHCs), Ayushman Arogya Mandirs (AAMs, formerly known as health and wellness centres) have been operationalised in rural and urban areas, offering a universal, free and expanded package of preventive, promotive, curative, palliative and rehabilitative services closer to communities.

More than 1,75,560 AAMs were operationalised till December 31, 2024.

The Universal Immunisation Programme (UIP) is one of India's most-impactful public health initiatives, providing life-saving vaccines to millions of newborns and pregnant women annually. Launched as the Expanded Programme on Immunisation in 1978, it was re-branded as the UIP in 1985, extending the coverage from urban to rural areas to bridge healthcare disparities.

Currently, the UIP offers 11 vaccines free of cost, protecting against 12 vaccine-preventable diseases.

With full immunisation coverage for FY 24 at 93.5 per cent nationally, the UIP continues to safeguard public health and ensure equitable access to essential vaccines, the report stated.

The Jan Aushadhi scheme, launched to provide affordable medicines, has gained significant momentum, achieving record sales in 2024 and expanding to more than 14,000 kendras nationwide.

"Despite challenges like quality concerns, supply issues and thin profit margins for pharmacists, the scheme has improved access to low-cost drugs. Awareness campaigns, expanded product offerings like sanitary napkins and increased rural outreach have boosted its impact, particularly for low-income groups and those with chronic illnesses," the report highlighted.

"While profitability remains a hurdle for pharmacists and suppliers, the growing demand by consumers highlights the enduring need for affordable healthcare solutions," it added.

While the government's health initiatives play a crucial role in improving access to healthcare and ultimately, enhancing health outcomes in the country, the overall health of a population is also affected by other socio-economic factors, the report pointed out.

These factors include sanitation, education, nutrition, early child development and personal habits, it said.

New Delhi | Localisation of Sustainable Development Goals (SDGs) ensures that rural development is in harmony with international goals, the Economic Survey released on Friday said, lauding Kerala for having a robust, community-based model that leverages its strong local governance institutions, and called it a "replicable model".

"The localisation of SDGs ensures that rural development is in harmony with international goals, focusing on essential services like housing, sanitation, water supply, and electrification. This strategy promotes inclusive growth and enhances the quality of life at the grassroots level," the Economic Survey said.

Kerala uses a "robust, community-based model that leverages its strong local governance institutions", the survey said.

"Awareness and community engagement efforts focus on educating local officials on the relevance of poverty alleviation and environmental resilience, which are led by state and national leaders," it said, adding that it is a replicable model for SDG localisation.

The report said Local Self Government Department, with technical support from the Kerala Institute for Local Administration (KILA), have developed comprehensive guidelines and processes to incorporate SDGs into local planning. They also train stakeholders in SDG-aligned development and data collection.

The state has a real-time SDG dashboard to monitor the panchayats and is able to use such localised data for decision-making and to provide insights on development indicators, the Survey highlighted.

SDG Coordination Centres (SDGCCs), which drive localisation efforts in states and UTs by governments in partnership with implementing agencies, are currently operational in 10 states/UTs -- Andhra Pradesh, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Nagaland, Punjab, Tamil Nadu, Uttar Pradesh, and Uttarakhand.

SDGs localisation is being pursued at the Gram Panchayat (GP) level through Village Panchayat Development Plans under Mission Antyodaya and the Transformation of Aspirational Districts Programme (TADP), adopted in 2018 with districts as the lowest level of implementation.

Accelerating forward, the preparation for a Local Indicator Framework (LIF) at the GP level is already in the process where nine themes have been designed spanning across the 17 SDGs.

New Delhi | India must prioritise investment in extensive grid infrastructure improvements and secure sourcing of critical minerals to strengthen its renewable energy initiatives, suggested Economic Survey 2024-25.

The document tabled in Parliament on Friday noted that despite being one of the world's lowest greenhouse gas emitters per capita, India has made notable strides in reducing the emissions intensity of its energy consumption.

This progress is largely due to the increased deployment of renewable energy sources alongside a suite of energy conservation measures, it also noted.

Nonetheless, it stated that the growth of renewable energy faces substantial hurdles, particularly in energy storage technologies and the sourcing of critical minerals necessary for this transition.

While alternative solutions such as green hydrogen present a viable option for the medium term, affordability issues remain a significant barrier to widespread adoption, it pointed out.

Furthermore, it stated that although nuclear energy could contribute to India's energy mix, its expansion is impeded by a lack of a supportive ecosystem and the monopolistic nature of nuclear fuel supply chains.

Lessons learned from the experiences of developed economies underscore the risks of prematurely shutting down thermal energy sources without viable technological alternatives that ensure a stable energy supply, it pointed out.

The challenges in harnessing renewable energy at scale indicate that India will need to continue the efforts to maximise the efficiency of its existing fossil fuel resources in the medium term.

The advancement and deployment of low-emission thermal power technologies, including Advanced Ultra Super Critical (AUSC) power plants, will play a pivotal role in this transition.

This AUSC power plant will reduce emissions by about 11 per cent compared to super-critical plants.

Presently, given the resource endowments, coal cannot be neglected as a reliable and affordable source of energy for India's development, it stated.

Lessons learnt from the experiences of developed economies caution against shutting down thermal energy without adequate technological alternatives that allow a stable energy supply, it pointed out.

India is uniquely positioned in terms of its growing energy requirements.

India must decisively leverage its best resources, advanced technologies, and expertise to accelerate its journey toward becoming a developed nation by 2047 while ensuring a low-carbon pathway.

Following this critical milestone, the nation must pursue its ambitious goal of achieving net zero emissions by 2070, the survey stated.

This will demand innovative strategies and strong implementation plans to confront climate challenges while ensuring sustainable development takes centre stage.

Innovation and investment in addressing the problems related to renewable energy - battery storage, grid infrastructure and critical minerals - must be the focus in the short to medium term.

India's climate efforts are anchored in its ambitious commitment to achieve net zero emissions by 2070.

This long-term goal is entwined with the country's aspirations for high and stable economic growth, which envisions becoming a developed nation by 2047.

Realising this vision necessitates a delicate balance, achieving low-carbon development while ensuring that critical imperatives such as affordable energy security, job creation, sustained economic expansion, and environmental sustainability are met.

To effectively navigate this dual challenge, India is adopting a holistic approach that embeds mitigation and adaptation in the growth strategy, it observed.

Mitigation focuses on addressing the root causes of climate change by reducing greenhouse gas emissions, while adaptation seeks to minimize the adverse impacts of climate change through a robust framework for resilience.

Given the backdrop of decreasing global financial commitments to support climate action in developing countries, India must increasingly prioritise building resilience to safeguard the benefits of its rapid economic growth against climate-induced setbacks, it said.

Investments in research and development related to battery storage technologies, as well as the recycling and sustainable disposal of waste associated with renewable energy systems, are critical factors in ensuring a reliable supply of energy from renewable sources and its sustainability.

The mission mode approach to developing carbon capture, utilization, and storage technology is essential for the continued use and enhancement of thermal power plants in the medium term, the survey said.

Accomplishing the goal of net zero emissions by 2070 will require innovative strategies and robust implementation plans designed to confront both the challenges posed by climate change and the need for sustainable development to take centre stage.

To strengthen its renewable energy initiatives, India must prioritise investment in extensive grid infrastructure improvements and the secure sourcing of critical minerals necessary for this transformative shift.

The survey also said that the off-grid solar systems shall be provided only where electricity supply through grid is not techno-economically feasible.

New Delhi | India must increasingly focus on building climate resilience to protect its rapid economic growth as global financial commitments to support climate action in developing countries continue to decline, according to the pre-Budget report tabled in Parliament on Friday.

The report assumes significance as India -- the seventh most vulnerable country to climate change -- prepares for the upcoming COP30 in 2025, where parties to the Paris Agreement will submit their next version of Nationally Determined Contributions (NDCs).

"The funding shortfall may lead to a reworking of the climate targets," the document warned.

According to India's Initial Adaptation Communication submitted to UNFCCC in December 2023, the country's total adaptation-related expenditure rose to 5.6 per cent of GDP in FY22 from 3.7 per cent in FY16.

The report criticised the outcome of COP29 held in Baku in November 2024, stating that the mobilisation target of USD 300 billion annually by 2035 is merely a fraction of the estimated requirement of USD 5.1-6.8 trillion by 2030.

"It underscores the unwillingness of affluent developed nations to assume their equitable share of the responsibility to address emission reduction and mitigate climate change impacts on vulnerable populations in developing regions," the report stated.

The document highlighted that developed countries are falling short of their NDCs by about 38 per cent.

Despite being one of the world's lowest per-capita greenhouse gas emitters, India faces significant challenges in its renewable energy expansion, particularly in energy storage technologies and sourcing critical minerals.

The country has committed to achieving net-zero emissions by 2070 while aiming to become a developed nation by 2047.

The report emphasised the need for region-specific adaptation actions considering India's diverse geographic and agro-climatic landscape. It also stressed the importance of investments in battery storage research, climate-resilient agriculture, and carbon capture technology.

The pre-Budget document also highlighted the potential of India's LiFE Mission in promoting pro-environment lifestyle changes, suggesting its integration into educational curricula to foster environmental consciousness from a young age.

New Delhi | A total of 1.18 crore houses have been sanctioned to beneficiaries of The Pradhan Mantri Awas Yojana – Urban (PMAY-U), the Economic Survey 2024-25 said on Friday.

The government launched PMAY-U in 2015 to provide permanent housing in urban areas. In September 2024, PMAY-U 2.0 was launched to assist an additional one crore households.

"As of November 25, 2024, a total of 1.18 crore houses have been sanctioned, with 1.14 crore grounded and over 89 lakh completed," the pre-budget document for the 2024-25 fiscal said.

Currently, 29 states and union territories have signed agreements to implement PMAY-U 2.0, with approval having been granted for 6 lakh houses in FY25.

Sharing details on urban infrastructure, the document further said metro rail and rapid rail transit systems are operational or under construction in 29 cities across India, with 1,010 kilometres currently operational in 23 cities and an additional 980 kilometres underway.

As of January 5, 2025, 62.7 kms were operationalised in FY25, and the daily ridership reached 10.2 million.

These systems have led to considerable savings in emissions, time, vehicle operating costs, accidents and infrastructure maintenance.

Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme was launched in 2015 to focus on improving urban water management in 500 cities.

As a result, tap water coverage has increased to 70 per cent, and sewerage coverage has risen to 62 per cent. The mission has created or augmented water treatment capacity of 4,649 million litres per day and developed 2,439 parks, adding 5,070 acres of green space.

In 2021, AMRUT 2.0 was introduced to expand coverage to all statutory towns and cities, with an allocation of Rs 2.77 lakh crore from FY22 to FY26. This phase so far has initiated 8,923 projects worth Rs 1.89 lakh crore.

AMRUT 2.0 actively involves self-help groups and promotes innovative technologies.

As of 13 January 2025, 8,058 projects worth 1.64 lakh crore have been proposed, with 7,479 projects worth 1.50 lakh crore completed under the Smart Cities Mission launched in 2015.

About 1.38 lakh real estate projects and 95,987 real estate agents have been registered under the Real Estate Regulatory Authority as of January 6, 2025.

Around 1.38 lakh complaints have been disposed of by the RERA across the country, the survey said.

New Delhi | India needs to grow at 8 per cent for up to two decades to become a developed nation by 2047, the Economic Survey said on Friday, pitching for a slew of reforms, including land and labour, to achieve the ambitious target.

It further said that to achieve this growth, the investment rate must rise to 35 per cent of GDP, up from the current 31 per cent, and develop the manufacturing sector further and invest in emerging technologies such as AI, robotics, and biotechnology.

India will also need to create 78.5 lakh new non-farm jobs annually till 2030-32, achieve 100 per cent literacy, develop the quality of our education institutions, and develop high-quality, future-ready infrastructure at scale and speed.

"...the faster economic growth that India needs is only possible if the union and state governments continue to implement reforms that allow small and medium enterprises to operate efficiently and compete cost-effectively... The focus of reforms and economic policy must now be on systematic deregulation," the Economic Survey 2024-25 said.

The survey also said there should be minimum regulations as small and medium enterprises have limited managerial and other resources at their disposal.

The list of areas in which systematic reforms are needed includes land, labour, building, utilities and public service delivery.

"Ease of Doing Business (EoDB) 2.0 should be a state government-led initiative focused on fixing the root causes behind the unease of doing business," the survey said.

It said where the union government sets the primary law, states also have the option to deregulate by amending subordinate regulations. States should consider these options while identifying opportunities for deregulation.

"To realise its economic aspirations of becoming Viksit Bharat by the time of the centenary of independence, India needs to achieve a growth rate of around 8 per cent at constant prices, on average, for about a decade or two," the survey said.

New Delhi | The U-WIN portal has registered 7.44 crore beneficiaries, conducted 1.26 crore vaccination sessions, and recorded 27.84 crore doses administered as of November 27, 2024, stated the Economic Survey 2024-25 while highlighted that it marks a transformative step in India's immunisation efforts.

The pre-budget survey tabled in the Parliament on Friday mentioned the initiatives that saw technology integration in healthcare delivery for timely diagnoses and recommendations of personalised treatments to telehealth technologies that connect patients and health professionals in a virtual space to improve efficiency and effectiveness.

The report described U-WIN as a user-friendly platform that enables seamless access to immunisation records, flexible scheduling, 'anytime access', and 'anywhere' vaccination.

Beneficiaries can self-register via the web portal or mobile app, track schedules, and receive SMS reminders for upcoming doses. U-WIN also generates QR-based e-vaccination certificates and facilitates the creation of Ayushman Bharat Health Accounts (ABHA) for parents and children, supporting holistic digital health management.

The portal is accessible in 11 regional languages. Over 1.7 crore pregnant women and 5.4 crore children have been registered digitally and more than 26.4 crore vaccine doses tracked in real-time, the survey stated.

The report also said that e-Sanjeevani -- the national telemedicine service -- has emerged as the world's largest telemedicine implementation in primary healthcare.

As on November 12, 2024, it has served over 31.19 crore patients through 1.29 lakh Ayushman Arogya Mandir as spokes, which are served by 16,447 hubs and 676 online OPDs with support of more than 22,5,286 doctors, medical specialists, super-specialists and health workers.

The integration and use of technology have the potential to offer viable solutions to problems of quality, accessibility and affordability, the report underlined.

"One such example is the potential to prevent loss of lives and save time by leveraging drones for the delivery of medicines in difficult geographies and in times of emergencies," it highlighted.

Drones are transforming healthcare in India by ensuring rapid delivery of life-saving medicines and collecting samples from remote and inaccessible areas, proving indispensable during emergencies.

The project 'i-DRONE' (ICMR's Drone Response and Outreach for North East) was launched under the aegis of the Ministry of Health and Family Welfare in October 2021 to assess the feasibility of using drones to deliver vaccines and medical supplies.

The exercise was conducted in rugged geographical terrains of the northeast (Manipur and Nagaland), including land, islands, foothills and across the hills.

Following the study's success, this initiative has been expanded and now includes delivering medical essentials at high altitudes in Himachal Pradesh, transporting tuberculosis samples in Telangana and moving pathological samples in Karnataka, the survey report stated.

New Delhi | Highlighting the need for enhanced deregulation for micro, small and medium enterprises, the Economic Survey 2024-25 on Friday said some challenges remain in the regulatory environment.

The regulatory compliance burden holds back formalisation and labour productivity, limits employment growth, chokes innovation and depresses growth, according to the survey tabled in Parliament by Finance Minister Nirmala Sitharaman.

"The faster economic growth that India needs is only possible if the union and state governments continue to implement reforms that allow small and medium enterprises to operate efficiently and compete cost-effectively," it stated.

Without deregulation, other policy initiatives will not deliver on their desired goals, emphasised the economic survey, adding that by empowering small businesses, enhancing economic freedom, and ensuring a level playing field, governments can help create an environment where growth and innovation are not only possible but inevitable.

It further stressed that Ease of Doing Business (EoDB) 2.0 should be a state government-led initiative focusing on fixing the root causes behind the unease of doing business. In the next phase for EoDB, it added, states must break new ground on liberalising standards and controls, setting legal safeguards for enforcement, reducing tariffs and fees, and applying risk-based regulation.

Citing examples from other countries, the survey stated, "The need to find growth avenues in an export-challenged, environment-challenged, energy-challenged, and emissions-challenged world means we need to act on deregulation with a greater sense of urgency." It also outlined a three-step process for states to review regulations for their cost-effectiveness systematically. The steps include identifying areas for deregulation, thoughtfully comparing the regulations with other states/countries and estimating the cost of each of these regulations on individual enterprises.

Recognising that the government has implemented several policies and initiatives over the last decade to support and promote the growth of MSMEs, the survey said, "some challenges in the regulatory environment remain".

It observed the tendency for firms in India to remain small and the logic for it often is to be under the regulatory radar and steer clear of the rules and labour and safety laws, adding that the biggest casualties of this are employment generation and labour welfare, which most regulations were originally designed to encourage and protect, respectively.

The survey said governments can help businesses become more efficient, reduce costs, and unlock new growth opportunities by reducing excessive regulatory burdens. Regulations increase the cost of all operational decisions in firms.

The Union government has undertaken deregulation by implementing process and governance reforms, simplifying taxation laws, rationalising labour regulations, and decriminalising business laws.

"On their part, states have also participated in deregulation by reducing compliance burdens and simplifying and digitising processes," the survey said. The assessment of states as per the Business Reform Action Plan (BRAP) formulated by DPIIT shows that deregulation helps spur industrialisation.

New Delhi | The rollout of 5G services in most districts along with regulatory reforms directed at improving telecom infrastructure and user experience has boosted digital connectivity in India, the Economic Survey 2024-25 has noted.

The document tabled in Parliament on Friday stated that telecom infrastructure in India is being significantly improved through the BharatNet Project, which aims to extend broadband access to rural areas, including villages, and enhance mobile coverage in regions such as the North-East, border areas, and islands.

"Digital connectivity has made major advancements in digital inclusion, technological innovation, and regulatory reforms this fiscal year, all in line with the government's vision for a Digital India.

"The rollout of 5G services, along with the introduction of new policies aimed at enhancing telecommunications infrastructure and user experience, has played a crucial role in digital connectivity," the pre-budget document said, noting that currently, 5G services are available in 779 out of 783 districts.

Under the Bharat Net Project, as of December 2024, 6.92 lakh km of Optical Fibre Cable (OFC) has been laid, it said.

Further, 2.14 lakh Gram Panchayats' are service-ready (including 5,032 via satellite, and 12.04 lakh FTTH (fibre-to-the-home) connections have been installed, according to the survey.

The Economic Survey is an annual report presented by the government prior to the Union Budget, which assesses the state of the economy. It is prepared by the Economic Division within the Department of Economic Affairs, part of the Ministry of Finance, under the guidance of the Chief Economic Adviser.

The Union Budget for 2025-26 will be presented by Finance Minister Nirmala Sitharaman on Saturday.

In terms of mobile services in the northeastern region, the survey said there are 1,358 sites that provide services in uncovered villages and highways.

In Arunachal Pradesh and Assam, there are 671 towers covering 1,178 villages, while in Meghalaya, 433 towers cover 622 villages and three highways.

For islands, submarine optical fiber cable (OFC) connectivity has been completed in the Andaman & Nicobar Islands with 205 Gbps bandwidth utilised, while satellite bandwidth has increased from 2 Gbps to 4 Gbps, it noted.

Submarine OFC project (1,869 km) for Lakshadweep was commissioned in January 2024, enabling 5G and FTTH services, it added.

New Delhi | Sounding a note of caution on the elevated stock market valuation, the Economic Survey on Friday 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.

"Elevated valuations and optimistic market sentiments in the US raise the likelihood of a meaningful market correction in 2025. Should such a correction occur, it could have a cascading effect on India, especially given the increased participation of young, relatively new retail investors.

"Many of these investors that have entered the market post-pandemic have never witnessed a significant and prolonged market correction. Hence, if one were to occur, its impact on sentiment and spending may be non-trivial," the Survey noted.

According to the survey, the rise in retail participation aligns with a steady decline in the five-year rolling beta between the Nifty 50 and the S&P 500 in the last four years, suggesting a reduced sensitivity of Indian markets to US market movements.

This decoupling is further evidenced by the increasing resilience of Indian markets during periods of FPI (Foreign Portfolio Investors) outflows.

For instance, in October 2024, despite FPI outflows of USD 11 billion, the Nifty 50 index was corrected by only 6.2 per cent, thanks to strong downside support provided by domestic institutional and individual investors.

In contrast, during the March 2020 pandemic-driven market sell-off, FPI outflows of USD 8 billion triggered a steep 23 per cent market decline.

"Even as the resilience demonstrated by the Indian market, supported by growing retail participation, is promising, the risks associated with a potential US market correction cannot be overlooked, given historical trends," the Economic Survey 2024-25 said.

Historical data suggests that the Indian equity market has been notably sensitive to movements in the US market. The Nifty 50 has historically shown a strong correlation with the S&P 500, with analysis of daily index returns between 2000 and 2024, revealing that in 22 instances when the S&P 500 corrected by more than 10 per cent, the Nifty 50 posted a negative return in all but one case, averaging a 10.7 per cent decline.

On the other hand, during 51 instances when the Nifty 50 experienced a correction of over 10 per cent, the S&P 500 exhibited positive returns in 13 instances, with an average return of -5.5 per cent.

This suggests the "asymmetric relationship between the two markets, highlighting a more pronounced impact of the movement in US markets on Indian equities than the other way around".

The Survey stressed that the capital markets are central to India's growth story, catalysing capital formation for the real economy, enhancing the financialisation of domestic savings, and enabling wealth creation.

As of December 2024, the Indian stock market has achieved new highs, with intermittent corrections, in the midst of geopolitical uncertainties, currency depreciation and domestic market volatility challenges. Investor participation has been a contributor, with the number of investors growing from 4.9 crore in FY20 to 13.2 crore as of December 31, 2024.

This growth, combined with active listing activity and recent measures by the regulator, Securities and Exchange Board of India (Sebi), to temper excesses, is expected to foster sustainable market expansion.

The primary markets continued to witness heightened listing activities and investor enthusiasm in FY25, notwithstanding the market volatility and geopolitical uncertainties.

As per the E&Y Global IPO trends, Indian stock exchanges provide conducive market conditions for foreign conglomerates to list their local subsidiaries, thereby offering a good opportunity for unlocking value.

India's share in global IPO listings surged to 30 per cent in 2024, up from 17 per cent in 2023, making it the leading contributor of primary resource mobilisation globally.

New Delhi | Air connectivity in the country has improved considerably with new airports and regional air connectivity scheme, the Economic Survey said on Friday and highlighted that airport developers and operators have achieved 91 per cent of the Rs 91,000-crore capital expenditure envisaged for the FY20-FY25 period.

"India is the fastest-growing aviation market globally. To accommodate the substantial growth in air traffic, Indian airlines have placed amongst the largest orders for aircraft globally," the Survey for 2024-25 tabled in the Parliament said.

Domestic airlines have ordered more than 1,700 planes as they look to expand their networks amid rising air traffic demand.

In the sphere of the Maintenance, Repair, and Overhaul (MRO) industry, the Survey said the government is encouraging original equipment manufacturers to establish facilities in India and has introduced policies to align the sector with global standards.

"New airports and improved regional connectivity under the Ude Desh ka Aam Naagrik (UDAN) scheme have improved air connectivity considerably," it added.

Under UDAN, 619 routes connecting 88 airports, including two water aerodromes and 13 heliports, have been operationalised so far.

The airport's cargo handling capacity has been gradually increasing, reaching 8 million MT in FY24.

"Airport operators and developers, including the Airports Authority of India, are pursuing a capital expenditure plan exceeding Rs 91,000 crore from FY20 to FY25.

"About 91 per cent of this has been achieved by November 2024," the survey said.

It also mentioned about the drones segment, aircraft leasing entities in the GIFT City and rationalisation of GST on imported aircraft parts and tools.

As of October 31, 2024, India has seen a notable rise in drone activities, with 140 remote pilot training organisations, 18,862 remote pilot certificates issued, 26,659 registered drones, and 82 approved drone models.

"About Rs 60.6 crore have been disbursed under the PLI (Production Linked Incentive) scheme to support drone manufacturing," the survey said.

Further, it said the PM Gati Shakti initiative aims to create a seamless multimodal connectivity network across the country. Under this initiative, the aviation sector is being integrated with other modes of transport, such as railways, roads, and waterways.

"As the electoral process settled, capital expenditure saw an uptick in July-November 2024. Capex in infrastructure sectors is expected to gain further momentum in the remaining months of the current fiscal.

"On an average, ministries related to infrastructure sectors utilised 60 per cent of the budgeted capex during April to November 2024. This compares favourably with the progress achieved in the same period in FY20 when the 17th Lok Sabha elections were held," the survey said.

New Delhi | Amid a debate over 70-90-hour work week, the pre-Budget Economic Survey on Friday cited studies to state that spending over 60 hours a week on work could have adverse health effects.

The survey noted that spending long hours at one's desk is detrimental to mental well-being and individuals who spend 12 or more hours (per day) at a desk have distressed or struggling levels of mental well-being.

"While the hours spent at work are informally considered a measure of productivity, a previous study has documented adverse health effects when hours exceed 55-60 per week," the survey said, citing findings by Pega F, Nafradi B (2021) and 'A systematic analysis from the WHO/ILO Joint Estimates of the Work-related Burden of Disease and Injury'.

Citing data from a study done by the Sapien Labs Centre for Human Brain and Mind, the economic survey, said, "Spending long hours at one's desk is equally detrimental to mental well-being. Individuals who spend 12 or more hours at a desk have distressed/struggling levels of mental well-being, with a mental well-being score approximately 100 points lower than those who spend less than or equal to two hours at a desk." Citing the study, the survey said better lifestyle choices, workplace cultures and family relationships are associated with 2-3 fewer days lost per month at work.

Having poor relationships with managers and low (worst) pride and purpose at work are associated with the largest increases in the number of days one is unable to work, it said.

The survey, however, pointed out that multiple factors affect productivity stating that even in jobs with the best managerial relationships, about 5 days per month are lost "because workplace culture is but one factor (among several) in the determination of productivity (and mental well-being)".

Citing a study by WHO, the Survey said globally, about 12 billion days are lost annually due to depression and anxiety, amounting to a financial loss of USD 1 trillion.

"In rupee terms, this translates to about Rs 7,000 per day," it noted.

The take by the Economic Survey 2024-25 on work hour week comes weeks after Larsen & Toubro Ltd Chairman and Managing Director S N Subrahmanyan sparked off a raging debate on social media when he said employees should work 90-hour a week, including on Sundays rather than sit at home.

He followed Infosys co-founder Narayana Murthy's suggestion of a 70-hour workweek and Adani Group chairman Gautam Adani's "biwi bhaag jayegi (wife will run away)" remark if one spent more than eight hours at home.

However, Subrahmanyan drew criticism from some peers in the business community. RPG Group Chairman Harsh Goenka said longer working hours was a recipe for burnout and not success.

Mahindra Group Chairman Anand Mahindra also asserted that focus should be on the quality of work and productivity rather than the amount of time spent working.

Similarly, ITC Ltd Chairman Sanjiv Puri stated that empowering employees to realise their potential and accomplish their jobs well was more important than the number of hours put in.

The work-life balance debate echoes a similar one in China where the so-called '996 culture' - the three digits describe a punishing schedule of 9 am to 9 pm six days a week - is being hotly debated.

Citing other studies, the economic survey noted that if India's economic ambitions are to be met, then immediate attention must be given to lifestyle choices that are often made during childhood and youth.

Furthermore, hostile work cultures and excessive hours spent working at the desk can adversely affect mental well-being and ultimately put the brakes on the pace of economic growth, it added

New Delhi | Tax breaks on electric vehicles and subsidies on renewable energy can motivate people to switch to low-carbon lifestyles, the pre-budget survey 2024-25 said on Friday.

There are several effective mechanisms to promote low-carbon lifestyles and advance sustainable development with the Emissions Gap Report 2020 from the United Nations Environment Programme (UNEP) outlining key strategies for fostering meaningful lifestyle changes, the survey stated.

"Financial incentives, such as tax breaks for electric vehicles and renewable energy use subsidies, can motivate individuals and organisations to adopt greener practices," it added.

The Indian government has introduced various measures to promote environmental sustainability and influence economic behaviour, the survey stated.

Initiatives like the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM KUSUM) and PM Surya Ghar: Muft Bijli Yojana encourage solar power adoption, it said.

Besides, high excise duties on fossil fuels and incentives for electric vehicles push for greener alternatives, the survey pointed out.

Additionally, educating the public about the environmental impacts of their choices is essential, it opined.

Campaigns that highlight the benefits of low-carbon alternatives and provide practical guidance can empower individuals to make sustainable decisions, it added.

"By leveraging peer pressure and engaging community involvement through social media and local initiatives, we can inspire sustainable behaviours and help establish a culture where low-carbon lifestyles are the norm," the survey said.

Finally, challenging existing habits and creating new norms around sustainability—such as promoting cycling or local food initiatives—can drive significant behavioural change over time, it added.

Mumbai | Benchmark indices Sensex and Nifty maintained their positive trend on Friday after the release of Economic Survey 2024-25 and buying in Larsen & Toubro post its earnings announcement.

The 30-share BSE benchmark Sensex jumped 790.11 points to 77,549.92. The NSE Nifty climbed 281.2 points to 23,530.70.

India is expected to record GDP growth of 6.3-6.8 per cent in financial year 2025-26 on the back of strong fundamentals, calibrated fiscal consolidation and stable private consumption, said the Economic Survey tabled in Parliament on Friday.

"...the fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation and stable private consumption. On balance of these considerations, we expect that the growth in FY26 would be between 6.3 and 6.8 per cent," the survey said.

From the 30-share blue-chip pack, Nestle surged over 4 per cent after the FMCG major reported 4.94 per cent increase in net profit at Rs 688.01 crore for the quarter ended December 31, 2024.

Larsen & Toubro climbed nearly 4 per cent after the infrastructure and engineering major reported 14 per cent rise in consolidated profit after tax to Rs 3,359 crore for the December quarter on the back of higher revenue from operations.

Titan, IndusInd Bank, Maruti and ITC were the other major gainers.

ITC Hotels, Bajaj Finserv, Bharti Airtel and ICICI Bank were among the laggards.

"Elevated valuations and optimistic market sentiments in the US raise the likelihood of a meaningful market correction in 2025. Should such a correction occur, it could have a cascading effect on India, especially given the increased participation of young, relatively new retail investors.

"Many of these investors that have entered the market post-pandemic have never witnessed a significant and prolonged market correction. Hence, if one were to occur, its impact on sentiment and spending may be non-trivial," said the Economic Survey.

Historical data and research suggest that the Indian equity market has been notably sensitive to movements in the US market, the survey said.

"The Nifty-50 has historically shown a strong correlation with the S&P 500, with analysis of daily index returns between 2000 to 2024 revealing that in 22 instances when the S&P 500 corrected by more than 10 per cent, the Nifty-50 posted a negative return in all but one case, averaging a 10.7 per cent decline.

"On the other hand, during 51 instances when the Nifty-50 experienced a correction of over 10 per cent, the S&P 500 exhibited positive returns in 13 instances, with an average return of -5.5 per cent," it added.

In Asian markets, Tokyo settled in positive territory, while Seoul ended lower. Markets in Shanghai and Hong Kong were closed due to holidays.

US markets ended in the positive zone on Thursday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,582.95 crore on Thursday, according to exchange data.

Global oil benchmark Brent crude climbed 0.13 per cent to USD 76.97 a barrel.

The 30-share BSE benchmark advanced 226.85 points or 0.30 per cent to settle at 76,759.81 on Thursday. The Nifty went up by 86.40 points or 0.37 per cent to 23,249.50.

New Delhi | Financial sector regulators need to maintain an optimal balance between the stability and innovation to foster financial inclusion, said Economic Survey 2024-25 tabled in Parliament on Friday.

The financial sector is primarily governed through independent regulatory bodies (IRBs) – RBI, SEBI, IRDAI, PFRDA and IBBI -- with FSDC having a broader financial stability mandate, enabling inter-regulatory coordination and promoting financial sector development, the survey said.

Each IRB varies in design, the nature of delegated functions, and the degree of autonomy, which are unique to the socio-political context of its evolution and the regulated domain, it said.

"Regulation in the financial sector must strike an optimal balance between the imperative of stability and the goals of fostering innovation, efficiency, and competition. Given the country's low financial literacy and lower-middle-income status, ensuring stability is essential to prevent systemic risks and protect consumers," it said.

However, it said, this should not come at the expense of stifling creativity, innovation, or healthy market dynamics.

At the same time, an excessive focus on innovation and competition without adequate safeguards can lead to financial instability, resource misallocation, and erosion of trust in the system, it said.

Striking this balance is particularly critical for India, considering its vast and diverse economy, growing aspirations, and substantial investment needs to sustain high growth and development, it said.

Stressing that there is vast scope for improvement in the regulatory responsiveness in terms of following participatory processes of the IRBs, the survey said, the Union Budget 2023-24 has recommended that the financial sector regulators include public consultations as part of the regulation-making process, and laying down time limits for various applications under different regulations.

New Delhi |Tap water connections in rural households under the Jal Jeevan Mission (JJM) have grown four-fold to about 15.30 crore as of November 2024, according to the Economic Survey 2024-25.

Around 3.23 crore (17 per cent) of rural households had tap water connections at the time of the launch of the mission in August 2019, the pre-budget document for the 2024-25 fiscal said.

The mission improved access to safe drinking water in rural areas, particularly in regions affected by water quality issues like arsenic and fluoride. Its impact includes better health outcomes and enhanced water security for vulnerable populations, it noted.

"Since then, over 12.06 crore families have been added, increasing the total to more than 15.30 crore (79.1 per cent) out of approximately 19.34 crore rural households as of November 26, 2024," the survey said.

Eight states -- Arunachal Pradesh, Goa, Haryana, Himachal Pradesh, Gujarat, Punjab, Telangana and Mizoram, and three union territories, namely, Andaman & Nicobar Islands, Dadra Nagar Haveli & Daman Diu and Puducherry -- have achieved 100 per cent coverage.

There are 2,160 water quality laboratories, out of which 1,570 are accredited by the National Accreditation Board for Testing and Calibration Laboratories, ensuring the safety of drinking water.

The survey further said that from April to November 2024, 1.92 lakh villages were incrementally declared ODF (open defecation free) plus under the model category, taking the total number of ODF Plus villages to 3.64 lakh.

New Delhi | Coordinated efforts from the government, private sector, academia, R&D institutions, and financial stakeholders are crucial for India to achieve its goal of becoming a manufacturing powerhouse amid an uncertain global environment, Economic Survey 2024-2025 said on Friday.

It also said that the rise of China as a manufacturing powerhouse and its impact on the manufacturing aspirations of other nations, as well as the supply of minerals, materials, machinery, and equipment needed for energy transition, pose challenges.

Amidst this, it said, India is in the middle of a change that represents an unprecedented economic challenge and opportunity.

The survey stressed that China is a dominant force in the global manufacturing and energy transition ecosystems as it has gained a strategic advantage leveraging its competitiveness and economic policy to access and control key resources recognised today as critical for global supply chains.

"Hence, in a rather unsupportive global environment, it calls for lasting, coordinated efforts from all tiers of government, the private sector, the skilling ecosystem, academia and R&D institutions, as well as financial stake holders to enable India to realise its ambition as a manufacturing powerhouse," the Survey said.

It added that the domestic manufacturing efforts under the PLI (Production Linked Incentive) scheme are expected to significantly support India's renewable energy targets by reducing costs, improving energy security, and boosting employment.

Domestic capacities are being built, but for now, India sources 75 per cent of lithium-ion batteries from China, and it has near negligible production capacity for key components like polysilicon, ingots, and wafers.

It added that there is a dependency of the world on China for energy transition efforts.

"India has ambitious goals for energy transition despite being one of the lowest per capita emitters of greenhouse gases. Dependence on China-made goods to achieve that transition enhances the complexity of the challenge for India," the survey said.

China is a dominant force in the global manufacturing and energy transition ecosystems.

It has gained a strategic advantage leveraging its competitiveness and economic policy to access and control key resources recognised today as critical for global supply chains.

"The effects of the rise of China as a manufacturing colossus are seen in automobile (especially electric vehicles) manufacturing, mining and refining capacity for critical minerals (Copper, Lithium, Nickel, Cobalt, Graphite, etc.) and in clean energy equipment," it said.

Further, it suggested to accelerate and amplify the deregulation agenda already underway in the last ten years.

"Also, every state in the country can learn from the best practices of other states in different areas so that all progress in unison," it said.

New Delhi | Following are the highlights of Economic Survey 2024-25:

* Indian economy to grow at 6.3-6.8 pc in FY26, against 6.4 pc in FY25

* India's economic fundamentals robust, backed by calibrated fiscal consolidation, stable consumption

* Navigating global headwinds will require strategic, prudent policy management and reinforcing the domestic fundamentals

* Risks to inflation remain on account of significant global political, economic uncertainties

* Investment activity expected to pick up, supported by higher public capex and improving business expectations

* India needs to improve its global competitiveness through grassroots-level structural reforms

* Forex at USD 640.3 billion, sufficient to cover 10.9 months of imports and 90 per cent of external debt

* Ease of Doing Business (EoDB) 2.0 should be a state government-led initiative focused on fixing the root causes behind the unease of doing business

* India should redouble its efforts to boost exports and attract investment. One way to do this is to benchmark ourselves to the rest of the world rather than our past.

* India needs a continued step-up of infrastructure investment over the next two decades for high growth

* Only few states like Gujarat, Uttarakhand and Himachal Pradesh are able to cash on their high dependence on industrial sector to generate reasonable levels of incomes for their people

* Service oriented Indian economy vulnerable to automation, impact of AI is magnified for India given its size and its relatively low per capita income

* Corporate sector has to display a high degree of social responsibility

* Reserach to increase pulses, oilseeds, tomato, onion production needed to develop climate-resilient crop varieties, enhancing yield and reducing crop damage.

* India needs to grow by 8 per cent on average for about a decade or two to become a developed nation by 2047

* Investments need to grow at 35 pc, up from 31 pc, to achieve required growth

* Focus of reforms, economic policy must now be on systematic deregulation

* Need to develop the manufacturing sector further and invest in emerging technologies such as AI, robotics, and biotechnology.

New Delhi | The Economic Survey on Friday said regulatory frameworks will need to be "revisited and amended" to ensure that use of AI aligns with societal values, balancing innovation with accountability and transparency.

The pre-Budget document cited an IMF paper to say that governments may be forced to tax incremental profit of corporates that use AI to replace labour.

With an entire chapter dedicated to 'Labour in the AI era', the Economic Survey noted that while impact of AI on labour will be felt across the world, the problem is magnified for India, given its size and its relatively low per capita income.

"If companies do not optimise the introduction of AI over a longer horizon and do not handle it with sensitivity, the demand for policy intervention and the demand on fiscal resources to compensate will be irresistible," it said.

The state, in turn, has to resort to taxation of profits generated from the replacement of labour with technology to mobilise those resources, as the IMF suggested in its paper, it noted.

"It will leave everyone worse off and the country's growth potential will suffer, as a result," the Survey warned.

Structural changes to how children are educated will be required in addition to safety nets that can shield existing workers from economic and social fallouts, said the pre-Budget document that details the state of the economy over the current fiscal year.

Utilising the window of time available during the nascent stages of AI to build robust institutions can ensure that the nation is well placed to minimise the costs as much as possible, it observed.

"This can then help tilt the scale towards the benefits, bringing a balance to the 'cost-benefit' aspect in a labour-driven, services-dependent economy like India," it said.

Navigating this transformation necessitates coordinated participation from all agents of the economy, according to the survey.

"A tripartite compact between the government, private sector and academia can ensure that the gains from AI-driven productivity are widely distributed, taking us in the direction of the ideal inclusive growth strategy," it said, adding that the probability of success in this endeavour is directly proportional to the appreciation of the enormity of the challenge and the gravity of the consequences of failure.

Learning from the lessons of the past, capacity building and institution building is the need of the hour for India to capitalise on the opportunity that lies ahead.

India's demographic advantage and diverse economic landscape position it uniquely to benefit from AI.

"However, achieving these benefits requires significant investments in education and workforce skilling, supported by enabling, insuring, and stewarding institutions. These mechanisms can help workers adapt to changing demands while providing essential safety nets," it said.

New Delhi | India needs to develop climate-resilient crop varieties and enhance yields to increase the production of pulses, oilseeds, tomatoes and onion to ensure long-term price stability, the Economic Survey 2024-25 on Friday said amid persisting concerns over food inflation.

The survey, tabled by Finance Minister Nirmala Sitharaman on Friday in Parliament, emphasised that India's food inflation rate has remained firm, driven by a few food items like vegetables and pulses.

The contribution of vegetables and pulses to the overall inflation stood at 32.3 per cent in 2024-25 (April to December).

When these items are excluded, the average food inflation rate for FY25 (April-December) was 4.3 per cent, which is 4.1 per cent lower than the overall food inflation, the survey said.

It also underlined that extreme weather conditions -- such as cyclones, heavy rains, floods, thunderstorms, hailstorms, and droughts -- impact vegetable production and prices.

These adverse weather conditions also present significant challenges to storage and transportation, resulting in temporary disruptions to the supply chain and causing an increase in vegetable prices, it added.

The pre-budget document further said the price pressures in tomatoes remained intermittently high since fiscal 2022-23 due to constrained supply.

Despite earnest efforts by the government, tomato prices remained high due to its highly perishable nature and production concentrated in few states, it added.

"To increase the production of pulses, oilseeds, tomato and onion, focused research is needed to develop climate-resilient crop varieties, enhancing yield and reducing crop damage," the survey suggested.

Farmers should receive training on best practices, the use of high-yield and disease-resistant seed varieties, and targeted interventions to improve agricultural practices in the major growing regions for pulses, tomatoes, and onions, it noted.

The survey also called for implementing robust data collection and analysis systems to monitor prices, stocks, and storage and processing facilities is essential in various tiers of government.

"This data should be used to identify areas for improvement and make informed policy decisions. High-frequency price monitoring data for essential food items collected by various agencies within the country may be linked to quantify and monitor price build-up at each stage from the farm gate to the final consumer," it said.

Despite challenges, the RBI and the IMF project that India's consumer price inflation will progressively align towards the inflation target of around 4 per cent in fiscal 2025-26.

The RBI expects headline inflation to be 4.2 per cent in FY26. IMF has projected an inflation rate of 4.4 per cent in FY25 and 4.1 per cent in 2025-26 for India.

New Delhi | To meet the goal of Viksit Bharat@2047, private investment needs to be accelerated in many critical sectors as government funding alone cannot upgrade the required infrastructure, the Economic Survey 2024-25 has stated.

The document tabled in Parliament on Friday stated that it is also clear public capital alone cannot meet the demands of upgrading the country's infrastructure commensurate with the requirements of Viksit Bharat@2047.

“We need to ensure increasing private participation in infrastructure by improving their capacity to conceptualise projects and their confidence in risk and revenue-sharing mechanisms, contract management, conflict resolution and project closure.

“The efforts of the Union Government would need to be supplemented with wholehearted acceptance of the need for public-private partnerships in infrastructure across the country. Equally important, the private sector must reciprocate, too,” the Survey, tabled by Finance Minister Nirmala Sitharaman, said.

Private participation should accelerate in many critical infrastructure sectors in many ways—programme and project planning, financing, construction, maintenance, monetisation and impact assessment, it suggested.

The document stated that India needs a continued step-up of infrastructure investment over the next two decades to sustain a high rate of growth.

"To realise its economic aspirations of becoming Viksit Bharat by the time of the centenary of independence, India needs to achieve a growth rate of around 8 per cent at constant prices, on average, for about a decade or two,” the Survey said.

Requirements are aplenty. Accelerating our efforts to build integrated multi-modal transport, coupled with the modernisation of existing physical assets, will improve efficiency and last-mile connectivity, it suggested.

Disaster resilient urbanisation, public transport, preservation and upkeep of heritage sites, monuments and tourist destinations, as well as rural public infrastructure, including connectivity, call for greater attention.

Our Net Zero commitments entail added stress on creating renewable energy capacities, it pointed out.

It noted that there are binding budget constraints to the different tiers of government.

Private participation should accelerate in many critical infrastructure sectors in many ways—programme and project planning, financing, construction, maintenance, monetisation and impact assessment, it suggested.

"Our infrastructure programme supports a variety of PPP models like build operate-transfer (toll and annuity), design-build-finance-operate-transfer, hybrid annuity model and toll-operate-transfer," it stated.

The strategy to step up private participation needs coordinated action of all stakeholders involved - governments at different tiers, financial market players, project management experts and planners, and the private sector.

Capacities to conceptualise projects, develop sector-specific innovative strategies for execution, and, develop high-expertise areas such as risk and revenue sharing, contract management, conflict resolution and project closure need to improve substantially, it suggested.

The efforts of the Union Government would need to be supplemented with wholehearted acceptance of the need for public-private partnerships in infrastructure across the country, it stated.

Apart from asset creation, our infrastructure programme also emphasises the use of sustainable materials and processes.

These considerations are receiving particular attention in areas such as highway development, waterway projects, power capacity addition and waste management.

Given the global imperative of promoting sustainable practices, model practices in this direction need to be replicated widely, it suggested.

The progress of physical indicators (in infrastructure sectors) in the current year mirrors the financial progress, it noted.

The addition to the rolling stock of railways, port handling capacity and power and transformation capacity improved during FY25 so far on a Y-o-Y basis.

The addition to the length of highways, roads and railway lines has been modestly lower, it noted.

On the whole, seen against the background of the constraints that prevailed in Q1FY25, infrastructure build-up in the current year has stayed on course, it held.

The government has placed infrastructure development at the centre stage of its fiscal and public policy agenda, it also noted.

The Ssurvey stated that an RBI's report on private investments showed that investment intentions increased to Rs 2.45 lakh crore for FY25 as compared to Rs 1.6 lakh crore for FY24. Along with fresh investment, some of the existing intentions would spill over and be implemented in FY26, the report said.

New Delhi | India's data centre market is projected to expand from USD 4.5 billion in 2023 to USD 11.6 billion by 2032, according to the Economic Survey 2024-25, which was tabled in Parliament on Friday.

India's data centre market is experiencing substantial growth, fuelled by the expansion of infrastructure and an increasing demand for digital services, the survey said.

"The data centre market in India is expected to grow from USD 4.5 billion in 2023 to USD 11.6 billion by 2032, at a CAGR of 10.98 per cent," the document said.

India benefits from lower construction costs on account of its well-established IT and digitally enabled services ecosystem, as well as relatively affordable real estate with a median of USD 6.8 million per MW in 2023, compared to USD 9.17 million in Australia, USD 12.73 million in Japan, and USD 11.23 million in Singapore, it said.

According to the survey, India's colocation data centre capacity reached 977 MW in 2023. An additional capacity of 258 MW led to a 105 per cent year-on-year growth.

"The total capacity under construction for 2024-2028 is 1.03 GW, with an additional 1.29 GW planned," the survey said.

Further, it informed that the government has empanelled 23 public and private cloud service providers to address the cloud needs of user departments, under the GI Cloud initiative, known as MeghRaj.

As of November 30, 2024, the National Informatics Centre supports 1,917 applications on its cloud, it said.

The Economic Survey is an annual report presented by the government prior to the Union Budget, which assesses the state of the economy. It is prepared by the Economic Division within the Department of Economic Affairs, part of the Ministry of Finance, under the guidance of the Chief Economic Adviser.

The Union Budget for 2025-26 will be presented by the Finance Minister on Saturday.

New Delhi | There is a need to focus on innovation, new drug development and biopharmaceuticals as spending on research and development still lags behind global leaders, said Economic Survey 2024-25 tabled in Parliament on Friday.

The total annual turnover of pharmaceuticals in FY24 stood at Rs 4.17 lakh crore, growing at an average rate of 10.1 per cent in the last five years.

Exports accounted for 50 per cent of the total turnover, with its value at Rs 2.19 lakh crore in FY24. The total import of pharmaceuticals was worth Rs 58,440.4 crore.

"The overall pharma landscape of India points towards a need to focus on innovation, new drug development and biopharmaceuticals, as R&D spending still lags behind global leaders," the survey said.

The government has taken various measures to support the sector like PLI scheme and Strengthening of Pharmaceuticals Industry (SPI) among others, it noted.

PLI scheme aims to attain self-reliance and reduce import dependence in critical Key Starting Materials (KSMs)/Drug Intermediates and Active Pharmaceutical Ingredients (APIs), the survey said.

Elaborating on other steps taken by the government, the survey stated that in October 2023, the Central Drugs Standard Control Organisation approved India's first indigenously developed CAR-T cell therapy.

To expedite the availability of newer drugs, such as gene therapy products, orphan drugs, drugs representing significant therapeutic advantage, in the country, the Central Drugs Standard Control Organisation has notified the US, UK, Japan, Australia, Canada and the European Union, enabling waiver of local clinical trial for new drugs that are already approved and marketed in the notified countries.

New Delhi | Indian real estate market has performed well on strong demand from across the country driven by economic stability and creation of physical infrastructure like roads and metro networks, according to the Economic Survey.

The document, which was tabled in Parliament on Friday, also highlighted that the real estate law RERA and goods and services tax (GST) have brought many benefits to the real estate sector.

"India's real estate market witnessed robust performance under office demand as well as residential sales driven by economic stability and positive market sentiment," the Survey said.

The demand for real estate is emerging not only in tier 1 and tier 2 cities but across the country due to the expansion of metro networks, enhancement to road networks, and improvements in connectivity, it added.

Citing research reports of real estate consultants, the Survey noted that housing demand in India is expected to touch 93 million units by 2036.

"The residential real estate market scaled an 11-year high in sales volume in the first six months of 2024. During this period, total sale across top eight cities recorded an 11 per cent YoY growth," the document said.

The Real Estate (Regulation and Development) Act, popularly known as RERA, has brought "numerous improvements in the real estate sector, including protection against fraud, increased transparency, timely project deliveries, and measures to prevent misuse of funds, among other benefits", the Survey said.

After the enactment of the Real Estate Regulatory Authority, India ranked 31st out of 89 countries in the Global Real Estate Transparency Index in 2024, it said.

"GST has helped to simplify the taxation structure in real estate transactions by applying a single unified tax system across states. It has encouraged proper invoicing and documentation, thus reducing the scope for tax evasion," the Survey said.

The document also noted that the rise of real estate investment trusts (REITs) further amplifies the positive trajectory of the commercial sector.

The government introduced REITs as an investment vehicle in commercial real estate, allowing investors to pool funds and invest in income-generating real estate. This helps increase commercial real estate market liquidity and attracts institutional investors.

"Implementation of online platforms for the submission and approval of building plans has led to a reduction in delays and brought more transparency to the process," the survey said.

The digital India land records modernization programme aims to create a comprehensive, accessible, and transparent land record management system.

Giving an update on the RERA implementation, the Survey said that Rules under the Real Estate (Regulation & Development) Act, 2016 (RERA) have been notified in all States and Union Territories except Nagaland, with various regulatory authorities established.

As of January 6, 2025, about 1.38 lakh real estate projects and 95,987 real estate agents have been registered under the Real Estate Regulatory Authority. Moreover, 1.38 lakh complaints have been disposed of by the RERA across the country.

The Real Estate (Regulation and Development) Act, 2016, was passed by the Rajya Sabha on March 10, 2016, and by the Lok Sabha on March 15, 2016. The was Bill passed by Parliament was assented to by the President on March 25, 2016.

Certain Sections of RERA were notified with effect from May 1, 2016, and the remaining sections from May 1, 2017.

New Delhi | Indian real estate market has performed well on strong demand from across the country driven by economic stability and creation of physical infrastructure like roads and metro networks, according to the Economic Survey.

The document, which was tabled in Parliament on Friday, also highlighted that the real estate law RERA and goods and services tax (GST) have brought many benefits to the real estate sector.

"India's real estate market witnessed robust performance under office demand as well as residential sales driven by economic stability and positive market sentiment," the Survey said.

The demand for real estate is emerging not only in tier 1 and tier 2 cities but across the country due to the expansion of metro networks, enhancement to road networks, and improvements in connectivity, it added.

Citing research reports of real estate consultants, the Survey noted that housing demand in India is expected to touch 93 million units by 2036.

"The residential real estate market scaled an 11-year high in sales volume in the first six months of 2024. During this period, total sale across top eight cities recorded an 11 per cent YoY growth," the document said.

The Real Estate (Regulation and Development) Act, popularly known as RERA, has brought "numerous improvements in the real estate sector, including protection against fraud, increased transparency, timely project deliveries, and measures to prevent misuse of funds, among other benefits", the Survey said.

After the enactment of the Real Estate Regulatory Authority, India ranked 31st out of 89 countries in the Global Real Estate Transparency Index in 2024, it said.

"GST has helped to simplify the taxation structure in real estate transactions by applying a single unified tax system across states. It has encouraged proper invoicing and documentation, thus reducing the scope for tax evasion," the Survey said.

The document also noted that the rise of real estate investment trusts (REITs) further amplifies the positive trajectory of the commercial sector.

The government introduced REITs as an investment vehicle in commercial real estate, allowing investors to pool funds and invest in income-generating real estate. This helps increase commercial real estate market liquidity and attracts institutional investors.

"Implementation of online platforms for the submission and approval of building plans has led to a reduction in delays and brought more transparency to the process," the survey said.

The digital India land records modernization programme aims to create a comprehensive, accessible, and transparent land record management system.

Giving an update on the RERA implementation, the Survey said that Rules under the Real Estate (Regulation & Development) Act, 2016 (RERA) have been notified in all States and Union Territories except Nagaland, with various regulatory authorities established.

As of January 6, 2025, about 1.38 lakh real estate projects and 95,987 real estate agents have been registered under the Real Estate Regulatory Authority. Moreover, 1.38 lakh complaints have been disposed of by the RERA across the country.

The Real Estate (Regulation and Development) Act, 2016, was passed by the Rajya Sabha on March 10, 2016, and by the Lok Sabha on March 15, 2016. The was Bill passed by Parliament was assented to by the President on March 25, 2016.

Certain Sections of RERA were notified with effect from May 1, 2016, and the remaining sections from May 1, 2017.

New Delhi | Indigenous electronics production increased multifold in the last 10 years to reach Rs 9.52 lakh crore in 2023-24, the Economic Survey said, but pointed out that the industry has largely focused on assembly, making limited progress in design and component manufacturing.

However, India's electronics market represents 4 per cent of the global market, the survey, which was tabled in Parliament on Friday, said.

"Programmes such as Make in India and Digital India, along with improved infrastructure, ease of doing business, and various incentives, have boosted domestic manufacturing and drawn foreign investments.

"However, India's electronics market represents 4 per cent of the global market. The industry has largely focused on assembly, with limited progress in design and component manufacturing," the survey said.

According to the survey, domestic production of electronic goods has increased substantially from Rs 1.90 lakh crore in FY15 to Rs 9.52 lakh crore in FY24, registering a compound annual growth rate (CAGR) of 17.5 per cent.

The increase in mobile manufacturing has reduced dependence on imports with 99 per cent of the total smartphone requirement being produced indigenously, according to the survey.

The country produced about 33 crore mobile phone units, with over 75 per cent of the models being 5G-enabled in FY24.

"The key drivers of growth have been the large domestic market, availability of skilled talent, and low-cost labour," the report said.

The survey said that production-linked incentive (PLI) schemes gave a boost to domestic electronic manufacturing and it was evident in the mobile phone segment.

"In FY15, mobile phone imports accounted for 78 per cent of the market in value terms, whereas by FY23 this figure had dropped to just 4 per cent. In terms of volume, only 0.8 per cent of mobile phones were imported in FY23.

"Exports tell a similar story. Mobile phone exports, valued at zero in FY16, soared to Rs 88,726 crore in FY23," the survey added.

New Delhi | The Economic Survey is likely to project a 6.3-6.8 per cent GDP growth for the next fiscal year, sources said.

The Survey 2024-25, authored by Chief Economic Advisor V Anantha Nageshwaran and his team, will be tabled in Parliament this afternoon.

India's GDP is projected to grow at a 4-year low pace of 6.4 per cent in the current fiscal on weak manufacturing and investments, as per estimates of the National Statistics office.

This is lower than the growth projected in last year's Economic Survey of 6.5-7 per cent and the Reserve Bank of India's 6.6 per cent estimate.

The Economic Survey, tabled every year a day ahead of the Union Budget, gives a broad roundup on macroeconomic performance of the ongoing fiscal and a glimpse of how the next fiscal is likely to pan out.

New Delhi | Finance Minister Nirmala Sitharaman on Friday presented the Economic Survey 2024-25 in the Lok Sabha.

The Economic Survey is an annual document presented by the government ahead of the Union Budget to review the state of the economy.

The document also provides an overview of the short-to-medium-term prospects of the economy.

The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance under the supervision of the chief economic adviser.

The first Economic Survey came into existence in 1950-51 when it used to be a part of the budget documents.

In the 1960s, it was separated from the Union Budget and tabled a day before the presentation of the Budget.

The Union Budget for 2025-26 will be presented by the Finance Minister on Saturday.