Service sector growth driving GDP resilience; policy focus on skilling, formalisation, finance access and infrastructure support.
The Economic Survey 2024-25 stresses the rising contribution of the service sector to national GVA and GDP growth, the importance of services exports (led by computer and business services) to external balance and employment, concentrated bank credit and FDI inflows into key service subsectors, and the need for skilling and formalisation. It highlights infrastructure and regulatory measures-digital tolling, expanded rail, port, aviation, inland waterways and telecom capacity-to support services, and presents a NITI Aayog classification of service sub sectors recommending targeted policy actions: defend, accelerate, transform, and untapped.

Agricultural credit targets set with an allied activities sub target, with partial disbursement reported mid year.
The Government set an elevated Ground Level Credit (GLC) target for FY 2024-25 with a dedicated sub-target for allied activities (dairy, poultry, sheep, goat, piggery, fisheries, animal husbandry), reflecting multi-year growth in agricultural credit; as of 31 December 2024 disbursements constituted a measurable proportion of that annual GLC target, demonstrating partial achievement and functioning as a performance metric for rural credit policy.

Public health financing increase expands coverage and reduces household health expenditure through national health schemes and digital initiatives.
Increase in public health financing has shifted national health expenditure toward greater government share and higher capital investment, aiming to reduce household financial hardship by expanding public provision. The national health insurance scheme expands coverage for vulnerable populations and reduces out-of-pocket spending by transforming primary-care facilities into Ayushman Arogya Mandirs that deliver a universal, free package of services.

Government welfare schemes boost low income household consumption and narrow consumption inequality through targeted fiscal transfers.
Government welfare schemes, delivered through fiscal transfers such as food subsidies, subsidized fuel, insurance and Direct Benefit Transfers, have increased resources for low-income households and disproportionately benefited lower consumption groups, thereby stimulating consumption and income-generating activity. The Economic Survey 2024-25 links rising social services expenditure, growth in education and health outlays, widespread ration-card coverage, and progressive subsidy incidence to declining Gini coefficients and a narrowing urban-rural consumption gap, with the largest MPCE gains recorded among the poorest percentiles.

Rural development policy advances integrated welfare, prioritising housing, connectivity, livelihoods and digital transparency in schemes.
The Survey sets out a Welfare for All rural policy executed through a Whole-of-Government approach prioritising housing, basic services, connectivity, livelihoods and digitisation. It describes a rural roads vertical to connect PVTG habitations, extensive PMAY-G housing completion with associated employment generation, and integrity measures in public works including geotagging, electronic and Aadhaar-enabled payments and social audits. DAY-NRLM's mobilisation of poor households into SHGs, state livelihood strategies, FNHW interventions, and expanded rural legal access via Gram Nyayalayas are presented as complementary measures to enhance inclusion.

Agriculture credit expansion: digitised interest subvention claims and mandated bank priority allocations to strengthen farmer finance.
The Survey emphasizes institutional credit expansion through operational Kisan Credit Cards and digitised processing of the Modified Interest Subvention Scheme to expedite claims, with mandated bank allocation to priority sectors to support agriculture. It highlights significant growth in ground level credit, a rising share to small and marginal farmers, and complementary reforms such as e KYC and credit guarantees to reduce non institutional borrowing.

Irrigation coverage expansion under water efficiency programmes increases cultivated area access and strengthens farming support services.
Irrigation coverage rose from 49.3% to 55% of gross cropped area between FY16 and FY21, with irrigation intensity increasing from 144.2% to 154.5%. The Per Drop More Crop micro irrigation initiative expanded coverage to 95.58 lakh hectares through FY25 with substantial releases to states, supported by a Micro Irrigation Fund providing 2% interest subvention and approved/disbursed loans. Rainfed Area Development has been integrated into RKVY with allotted funds and area coverage, while organic farming schemes and cooperative sector reforms have mobilised clusters, Farmer Producer Companies, new PACS and service enhancements to strengthen farmer support and input delivery.

Minimum Support Price reforms and digital e-KYC for PDS strengthen farmer incomes and market access nationwide.
The Economic Survey sets out a policy package to raise agricultural productivity and farmer incomes through Minimum Support Price (MSP) adjustments for selected crops, subsidised micro-irrigation with specified cost-sharing and an interest subvention Micro Irrigation Fund, allied sector interventions for livestock and fisheries including infrastructure funds and digital registries, market reforms via an e National Agriculture Market and Digital Agriculture Mission, full e KYC implementation in the Public Distribution System for beneficiary portability, production linked and formalisation incentives for food processing, and a Credit Guarantee Scheme to enable pledge financing against e NWRs.

Bank credit growth and improved asset quality bolster financial sector stability, supporting market mobilisation and inclusion.
Steady bank credit expansion, improved asset quality and rising profitability have strengthened financial sector resilience; deposits grew robustly and sectoral credit showed faster growth to MSMEs. Monetary policy remained calibrated to price stability and growth with repo rate unchanged and surplus liquidity. Capital markets, insurance and pension sectors recorded notable mobilisation and subscriber growth, while insolvency resolutions influenced bank balance sheets. The Survey stresses regulatory quality-assessing legitimacy, accountability, openness, expertise and efficiency-and calls for enhanced cybersecurity and coordination to support fintech innovation and financial inclusion.

Service sector growth drives GDP resilience and export expansion, spotlighting skilling and connectivity as policy priorities.
Service sector contribution to Gross Value Added rose from 50.6% to about 55% between FY14 and FY25, with real GVA growth averaging above six percent annually and 8.3% in FY23-FY25; services aided GDP growth amid manufacturing weakness and saw export acceleration driven by computer and business services. Financing expanded via bank credit (13% YoY growth, strong gains in software and professional services) and FDI inflows concentrated in insurance and financial services. Policy priorities emphasise skilling, regulatory simplification, connectivity improvements, and a sub-sector classification framework for targeted interventions.

Retail inflation reduction driven by lower core inflation and policy measures, supporting alignment with the inflation target next year.
Retail inflation eased chiefly due to a decline in core inflation and lower fuel-price pressures, supported by monetary-policy measures and administrative actions such as strengthened buffer stocks, open-market releases and import facilitation. Food-price volatility from vegetables, pulses, onions and tomatoes-exacerbated by extreme weather and concentrated production-remains an important inflationary source; recommended responses include climate-resilient crop research, farmer training and high-frequency price monitoring. Forecasts cited foresee a gradual alignment of consumer inflation toward the inflation objective, aided by global commodity price softness.

Infrastructure capacity expansion accelerates across transport and digital sectors, prioritising multi modal connectivity and modernisation.
Capacity addition in physical connectivity sectors continued in FY25 with sustained infrastructure investment urged for growth. Rail modernisation included expanded rolling stock, station upgrades, signalling automation, commissioning of Gati Shakti Cargo Terminals, renewable energy targets, corridor projects and PPP activity alongside Vande Bharat deployment. Ports and inland waterways saw increased capacity, shorter container turnaround, approved PPP projects, transshipment planning and waterway investments for the North East. Road policy shifted to corridor-based highway expansion and complementary logistics measures; aviation saw major capex and UDAN route operationalisation; digital connectivity advanced via 5G rollout, Digital Bharat Nidhi and cloud expansion under MeghRaj.

Private participation in infrastructure urged to expand via regulatory reforms and capacity building for project finance and delivery.
The Economic Survey stresses the need to scale up private participation in physical, digital and social infrastructure by improving private capacity to conceptualise projects and confidence in public private partnerships through enhanced expertise in risk and revenue sharing, contract management, dispute resolution and project closure; it notes regulatory reforms and de bottlenecking initiatives but limited private uptake in core sectors, and calls for coordinated action across governments, financiers and project specialists to accelerate capital expenditure and implement innovative execution and financing mechanisms.

Labour market recovery with formalisation and skilling drives employment growth and expanded social security access.
Labour market indicators improved substantially with unemployment declining to 3.2% in 2023 24, increased EPFO subscriptions and youth centred payroll additions, rising self employment and a jump in female labour force participation to 41.7%. The eShram portal has registered over 30.51 crore unorganised workers and integrated multiple welfare schemes to provide universal identification and benefit access. The Survey advocates enabling labour regulations, flexible working arrangements, and a layered skilling strategy-including apprenticeships, ITI upgrades and certification-to expand employment in digital and renewable energy sectors and to support women entrepreneurs.

MSME financing and formalisation reforms expand equity, guarantee support and digital registration to ease business and speed payments.
Policies strengthen MSMEs via cluster development, Common Facility Centres, an equity-focused Self-Reliant India Fund combining government seed capital with private funds, and a revamped Credit Guarantee Scheme to unlock additional lower-cost credit. Digital and facilitation measures include PAN-based Udyam Registration, Udyam Assist for informal enterprise formalisation, the MSME Samadhan grievance portal with recorded filing and disposition metrics, and the CHAMPIONS portal providing regional-language support. TReDS is identified as a marketplace to accelerate receivables and reduce MSME financing costs under the MSMED framework.

Infrastructure capital expenditure growth drives expansion of power, water, sanitation, housing and urban transport, urging enhanced public private participation.
The Union Government's capital expenditure on key infrastructure sectors rose significantly from 2019-20 to 2023-24, with spending momentum strengthening in mid-2024; this supported expansion across power (including renewable additions and improved supply reliability), rural water access under the Jal Jeevan Mission, sanitation progress to ODF Plus, urban housing and transport projects, and city development missions, while the Survey stresses the need for enhanced private participation and improved project management capacities to sustain delivery.

Business reforms urged to enable state-level industrial strategies and ease firm entry, promoting convergence in incomes.
The Survey finds marked interstate variation in industrialisation and sectoral concentration-construction and mining show distinct geographic patterns-and recommends business reforms and bespoke state industrial strategies. It identifies the regulatory environment and infrastructure development as key determinants of industrial growth and urges states to ease business commencement and expansion to promote income convergence and stronger sectoral performance.

Industrial growth forecast driven by manufacturing expansion and policy support for smart manufacturing and IP reforms.
Industrial growth is forecast to strengthen, led by electricity, construction and consumer-focused manufacturing such as automobiles, electronics, and pharmaceuticals. Sectoral measures include infrastructure-driven demand for cement and steel, Smart Manufacturing and Industry 4.0 support via SAMARTH Udyog centres, and targeted incentives including PLI extensions for autos. Electronics and pharmaceuticals show rapid domestic expansion; medical devices are fast-growing. Reforms enhancing R&D and IP-including changes following the National IPR Policy and the Patent (Amendment) Rules 2024-are presented as reducing compliance and streamlining patent processes to support industrial scaling.

Augmented intelligence: integrate human labour and AI through institutional upskilling and responsible deployment to limit displacement.
Policy prioritises Augmented Intelligence to integrate human labour and AI while guarding against automation-driven displacement by building Social Infrastructure of enabling, insuring, and stewarding institutions and forming a Tripartite Compact between government, industry, and academia to mobilise resources, upskill the workforce, and ensure AI is practical, reliable and scalable.

Trade resilience: India advances export strategy through FTAs, logistics reforms and a DGFT single window platform to boost services and FDI.
India's exports rose by six percent in the first nine months of FY2024 25 despite global headwinds and growing Non Tariff Measures. The Survey recommends leveraging Free Trade Agreements, export diversification, logistics upgrades and the DGFT's Trade Connect e Platform to support exporters, particularly MSMEs. Gross FDI inflows increased in early FY25 though repatriations rose; foreign exchange reserves provide a strong buffer while external debt ratios remain stable, prompting emphasis on attracting foreign savings and improving investment efficiency.