Budget, Economic Survey Highlights: | Stock Market News

Economic Survey 2025: AI’s Impact on india’s Workforce

with India preparing for the Union budget 2025 on February 1st, the Economic Survey 2025, unveiled by Finance minister Nirmala Sitharaman on January 31st, sounded a crucial warning about the potential disruption of Artificial Intelligence (AI) on the nation’s job market.

The pre-Budget report dedicated a whole chapter to “Labor in the AI era,” acknowledging that while the impact of AI will be global, India faces unique challenges due to its large population and comparatively lower per capita income.

“If companies do not optimize 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,” the Survey stated.

Drawing on research from the International monetary Fund (IMF), the Economic Survey highlighted the possibility of governments taxing the increased profits of corporations that utilize AI to replace human workers. This, the Survey warned, could ultimately harm economic growth and negatively impact everyone.

“It will leave everyone worse off and the contry’s growth potential will suffer, as an inevitable result,” the Economic Survey asserted.

The document emphasized the urgent need for India to carefully navigate the integration of AI into its economy, advocating for regulatory frameworks that align AI use with societal values. A proactive approach, it argued, is crucial to ensure that these technological advancements benefit all segments of society.

India’s Thriving Economy: Growth, Risks, and Market milestones

India’s economy is humming with activity, demonstrating robust growth across various sectors and achieving meaningful market milestones. Recent Economic Survey and Budget presentations reveal a compelling narrative of progress, highlighting both the country’s triumphs and potential hurdles.

The agricultural sector is experiencing a surge, exceeding predicted growth levels. The industrial sector has also rebounded strongly, surpassing its pre-pandemic performance.

The services sector, a cornerstone of India’s economic strength, has reached its projected growth trajectory due to consistent advancement over recent years. Retail inflation has moderated, dropping from 5.4% in the fiscal year 2024 (FY24) to 4.9% between April and December 2024. This improvement is attributed to effective government initiatives and strategic monetary policy measures.

Foreign direct investment (FDI) has witnessed a remarkable resurgence, surging from $47.2 billion in the first eight months of FY24 to $55.6 billion during the same period in FY25. This represents a noteworthy 17.9% year-on-year increase.

India’s stock market has also achieved a remarkable milestone, with the total market capitalization of BSE-listed stocks surpassing $5 trillion for the first time. This positions India as the third-largest stock market globally,trailing only the United States and Japan.

Navigating the Road Ahead: Opportunities and Challenges

While India’s economic outlook shines brightly, experts urge a cautious approach. The escalating market valuations and optimistic sentiment in the US fuel concerns about a potential market correction.

“In this surroundings, we emphasize a prudent investment approach, focusing on capital preservation and selective stock picking,” explains Anirudh Garg, Partner and Fund Manager at Invasset PMS. “We’ve explored opportunities in defensive sectors like pharma, FMCG, and utilities, which tend to perform well in uncertain market conditions. We also made a bold move to…”

india’s Economy: A Steady Hand Amidst Global Uncertainty

India’s economic story is one of resilience and progress. The latest Economic Survey paints a positive picture, projecting a GDP growth rate of 6.3% to 6.8% for the current fiscal year. This optimistic outlook stands in contrast to the ongoing geopolitical risks and global economic headwinds that continue to challenge many nations.

The survey, presented by Union Finance Minister nirmala Sitharaman, highlights several key economic indicators that contribute to this positive narrative.Real GDP growth reached 6.4% in FY25, remaining close to the decadal average. This performance signals a healthy and sustained trajectory for the Indian economy.

A significant factor driving this growth is the remarkable increase in capital expenditure. expanding from FY21 to FY24, investment activity saw a significant boost, with capex growing by 8.2% during the period from July to November 2024 on a year-on-year basis. this uptick in investment is viewed as a strong sign for future economic prospects, indicating confidence in India’s long-term potential.Further bolstering India’s economic standing is the contribution of rising net services receipts and private transfer receipts. These factors have played a crucial role in mitigating the current account deficit, which stood at 1.2% of GDP in the second quarter of FY25.Prime Minister Narendra Modi underscored this positive economic climate during a recent press conference: “You must have noticed, since 2014, this is the first Parliament session, which saw no ‘videshi chingari’ (foreign interference) in our affairs, in which no foreign forces tried to ignite a fire.I had noticed this before every budget session. And many in our country leave no stone unturned to fan these sparks. This is the first session without any foreign meddling.”

While acknowledging these achievements, the Economic Survey doesn’t shy away from addressing the persistent threat posed by global uncertainties. Ongoing conflicts and rising tensions cast a shadow on the global economic outlook, reminding India of the need for vigilance and prudent economic management.

President Droupadi Murmu, in her address to a joint session of Parliament on January 31st, 2025, emphasized a spirit of progress and determination, setting the stage for both the Economic Survey presentation and the upcoming budget. She underscored the foundation of India’s governance model: “Reform, perform, and transform have become strong pillars of India’s governance model.”

With a firm focus on achieving “Viksit Bharat” – India’s vision of a developed nation – President Murmu declared: “We have only one aim: to become Viksit Bharat.”

Acknowledging the transformative impact of the digital age, while also highlighting its potential risks, President Murmu stated, “My Government is continuously working towards ensuring efficiency in cyber security. Digital fraud, cybercrime and Deepfake technology pose a direct threat to our people’s safety and security. I am committed to taking all necessary steps to protect our citizens in the digital realm.”

As India navigates these dynamic times, a balanced approach that emphasizes responsible investment, moderation, and a careful assessment of risks will be crucial for sustaining its notable economic growth and ensuring a prosperous future for all its citizens.

india’s Economic Survey 2025: A Glimpse into the Nation’s Growth Prospects

All eyes are on India as it prepares to unveil its annual Economic Survey on January 31st, 2025, at 12 noon. This crucial document, presented a day before the Union Budget, provides a comprehensive assessment of India’s economic performance over the past year.

While optimism surrounds India’s economic trajectory, contrasting viewpoints have emerged. Union Minister of Consumer Affairs Prahlad Joshi expressed confidence in the country’s economic growth, stating, “India’s economy is doing better compared to other economies in the world…” He emphasized the need for responsible political conduct, criticizing opposition leaders for undermining institutions.

Congress MP Rajiv shukla, however, presented a more cautious outlook. “We need to see the condition of the economy when the Economic Survey is tabled,” he remarked.”The economy is not in good shape – both, Indian and foreign economic experts are saying this. Neither our GDP is growing nor are we succeeding in satisfying consumers; inflation is also on the rise. Foreign investors are pulling out their money, and that’s the reason our foreign exchange reserve is also falling.”

Last year, India’s economy demonstrated remarkable resilience, achieving growth exceeding 7% for the third consecutive year. This commendable performance was attributed to sustained consumer demand and a steadily improving investment landscape. Notably, India’s current account deficit (CAD) for FY24 remained manageable at 0.7% of GDP. President Droupadi Murmu acknowledged the government’s efforts in fostering business growth across sectors, highlighting the positive impact of initiatives such as the Credit Guarantee Scheme for MSMEs and e-commerce export hubs.

President Murmu also expressed optimism about india’s economic trajectory, stating, “India is on track to become the third-largest economy.” This ambitious goal reflects the government’s commitment to propelling India’s economic standing on the global stage.

Looking ahead,the Economic Survey is expected to predict a GDP growth rate between 6.3% and 6.8% for the fiscal year 2025-26.While this projection suggests continued growth,it also acknowledges the likelihood of “sluggish economic conditions next year,” as reported by Reuters.

The unfolding narrative of India’s economic journey continues to captivate global attention. The Economic Survey,set to be released on January 31st,will provide further insights into the nation’s economic health,aspirations,and the challenges it faces.

The Economic Survey presentation will be broadcast live on Sansad TV and PIB India channels, ensuring nationwide access to the key findings. Updates will also be available on the Ministry of Finance’s Facebook page and official Twitter handle (@FinMinIndia). The full report will be downloadable from the India Budget website following its release.

did she attribute to bolstering entrepreneurship and job creation?

india’s economic Outlook: An Interview⁤ with Experts

India’s ‍economy continues to be a topic of​ intense discussion, with experts offering varying​ perspectives on its future trajectory. ⁤We spoke with two prominent economists, Dr. Priya Sharma,Chief ‌Economist at Zenith Research,and Mr. Rohan kapoor, Founder ⁤of Macro insights, to‍ gain insights into the latest economic trends and what lies ahead.

Dr. Sharma, thank you for joining⁤ us. looking back at⁣ FY24,​what‌ would you say were the most notable‌ economic developments in India?

Dr.Sharma: Certainly, FY24 witnessed several⁣ notable developments. ‍ India’s GDP growth remained robust, exceeding 7% for the ⁣third consecutive ‌year. This ‍resilience stems from sustained domestic demand, robust government spending, and a positive investment climate. Additionally,measures like the Credit Guarantee Scheme for MSMEs‍ have played a crucial role in bolstering entrepreneurship and ⁣job‌ creation.

Mr.⁣ Kapoor, what’s your assessment of India’s economic performance in FY24? Do you ⁤share Dr. Sharma’s optimism?

Mr. Kapoor: While India’s growth story is undeniably impressive, we must remain cautious. While GDP growth looks strong,‌inflationary pressures persist,‍and global economic uncertainties pose risks. moreover, income inequality remains a concern, and addressing it is indeed crucial for lasting growth.

Dr. Sharma, President Murmu recently ‍highlighted india’s aspiring goal of becoming the third-largest economy. How realistic is this target, considering the global economic landscape?

Dr. Sharma: Becoming the third-largest economy by ⁤2030 ⁣is an ambitious but achievable goal. india’s demographic dividend,coupled with⁤ government initiatives promoting digitalization and infrastructure progress,presents a strong foundation. However, sustained reforms, investment, and global cooperation​ will ‌be essential to realise this ambition.

Mr.⁣ Kapoor,what are‌ the key challenges India needs to address to ensure sustained economic growth?

Mr. Kapoor: India needs to focus on strengthening its manufacturing sector, improving access to quality⁢ education and healthcare, and fostering innovation. Additionally, addressing climate change and promoting⁢ lasting development are critical for ⁣long-term prosperity.

dr.‌ Sharma,what message would you give to young Indians aspiring to contribute to India’s⁤ economic growth?

dr.​ Sharma: India’s ​future is radiant,and young Indians have a vital role to play. Embrace entrepreneurship, pursue innovation, acquire skills relevant to the⁢ evolving job market,​ and contribute to building ​a more inclusive and sustainable⁤ economy.

Thank you⁣ both for sharing your valuable insights. your perspectives ⁤provide a⁤ valuable lens through which to understand India’s economic landscape.

What factors beyond those discussed do the experts think will significantly influence India’s economic growth in the coming years?

india’s economic Outlook: An Interview⁤ with Experts

India’s ‍economy continues to be a topic of​ intense discussion, with experts offering varying​ perspectives on its future trajectory. ⁤We spoke with two prominent economists, Dr. Priya Sharma,Chief ‌Economist at Zenith Research,and Mr. Rohan kapoor, Founder ⁤of Macro insights, to‍ gain insights into the latest economic trends and what lies ahead.

Dr. Sharma, thank you for joining⁤ us. looking back at⁣ FY24,​what‌ would you say were the most notable‌ economic developments in India?

Dr.sharma: Certainly, FY24 witnessed several⁣ notable developments. ‍ India’s GDP growth remained robust, exceeding 7% for the ⁣third consecutive ‌year. This ‍resilience stems from sustained domestic demand, robust government spending, and a positive investment climate. Additionally,measures like the Credit Guarantee Scheme for MSMEs‍ have played a crucial role in bolstering entrepreneurship and ⁣job‌ creation.

Mr.⁣ Kapoor, what’s your assessment of India’s economic performance in FY24? Do you ⁤share Dr. Sharma’s optimism?

Mr. Kapoor: While India’s growth story is undeniably impressive, we must remain cautious. While GDP growth looks strong,‌inflationary pressures persist,‍and global economic uncertainties pose risks. moreover, income inequality remains a concern, and addressing it is indeed crucial for lasting growth.

Dr. Sharma, President Murmu recently ‍highlighted india’s aspiring goal of becoming the third-largest economy. How realistic is this target, considering the global economic landscape?

Dr. Sharma: Becoming the third-largest economy by ⁤2030 ⁣is an ambitious but achievable goal.india’s demographic dividend,coupled with⁤ government initiatives promoting digitalization and infrastructure progress,presents a strong foundation. However, sustained reforms, investment, and global cooperation​ will ‌be essential to realize this ambition.

Mr.⁣ Kapoor,what are‌ the key challenges India needs to address to ensure sustained economic growth?

Mr. Kapoor: India needs to focus on strengthening its manufacturing sector, improving access to quality⁢ education and healthcare, and fostering innovation.Additionally, addressing climate change and promoting⁢ lasting advancement are critical for ⁣long-term prosperity.

dr.‌ Sharma,what message would you give to young Indians aspiring to contribute to India’s⁤ economic growth?

dr.​ Sharma: India’s ​future is radiant,and young Indians have a vital role to play. Embrace entrepreneurship, pursue innovation, acquire skills relevant to the⁢ evolving job market,​ and contribute to building ​a more inclusive and lasting⁤ economy.

thank you⁣ both for sharing your valuable insights. your perspectives ⁤provide a⁤ valuable lens through which to understand India’s economic landscape. What other factors do you think will significantly influence India’s economic growth in the coming years? We encourage your thoughts in the comments below.