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Economic Survey 2024-25 Highlights: Economic Survey flags China risk, says India needs to go ‘all out to attract domestic, foreign investments’

Economic Survey 2024-25 Highlights: Ensuring a safe and satisfactory workplace is in the 'enlightened self-interest' of companies and key to long-term employee morale and productivity, according to the Economic Survey 2024-25.

Economic Survey 2024-25 Highlights: 'Single-source concentration risk" in multiple areas exposes India to "potential supply chain disruptions, price fluctuations, and currency risks", according to CEA V Anantha Nageswaran. (Express Photo)

Identifying India’s dependence on China for many products as a key risk, the Economic Survey has recommended that India needs to go all out to “attract, promote and facilitate further domestic and foreign investments”.

India faces “single-source concentration risk” in multiple areas, especially from neighbouring China, which exposes India to “potential supply chain disruptions, price fluctuations, and currency risks,” the Economic Survey said. It is imperative for India to attract investments in order to achieve its goal of becoming a competitive and innovative economy, according to the Economic Survey 2024-25.

Authored by the Chief Economic Advisor V Anantha Nageswaran and his team of officials, the Survey said: “India faces limitations in producing critical goods at the scale and quality required to serve the infrastructure and investment needs of an aspiring economy… (For instance) Several solar equipment manufacturers in the country significantly depend on Chinese supply chains and related services.”

This “single-source concentration risk” in multiple areas exposes India to “potential supply chain disruptions, price fluctuations, and currency risks”.

India FY26 GDP growth

Quoting the first advance estimates (FAE) released by MoSPI, the Survey said the real GVA growth for FY25 is estimated to be 6.4 per cent. Growth in the first half of the current fiscal year was “supported by agriculture and services, with rural demand improving on the back of record Kharif production and favourable agricultural conditions,” it said.

Finance Minister Nirmala Sitharaman on Friday tabled the Economic Survey 2024-25 in Parliament.

For the next fiscal year, the Survey projects India’s economy to expand between 6.3 and 6.8 per cent. “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 document says.

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After the Survey was tabled, the 30-share benchmark Sensex was trading about a per cent higher in intraday trade at 77,501.55.

Health of banks
Gross non-performing assets (NPAs) in the banking system have declined to a 12-year low of 2.6 per cent of gross loans and advances, the Survey said, citing the Reserve Bank of India’s Financial Stability Report (FSR), December 2024.

Construction
Another key indicator of the robustness of economy, construction has been a standout, gaining momentum since mid-FY21 and soaring approximately 15 per cent above its pre-pandemic trend—an impressive feat

Workplace
In a prescription to India Inc amid reports of employee injuries due to inadequate safety nets, the Survey says that ensuring a safe and satisfactory workplace is in the “enlightened self-interest” of companies and key to long-term employee morale and productivity. “Ethical conduct and fairness in business are the signs and bedrock of a mature and developed society. Treating workers humanely and, providing for their safety and looking after them when injured make as much business sense as it is the fair and ethical thing to do”.