HIGHLIGHTS OF ECONOMIC SURVEY 2024-25

 

 In News

The Economic Survey 2024-25, presented by Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, provides a comprehensive overview of India’s economic performance, challenges, and future outlook.

State of the Economy 

GDP Growth: India’s real GDP growth is estimated at 6.4% in FY25, aligning with its decadal average. Real GVA (Gross Value Added) is also projected to grow at 6.4% in FY25. The growth is driven by structural reforms, improved infrastructure, and a resilient external sector.

Global Context: The global economy grew at 3.3% in 2023, with the IMF projecting an average growth of 3.2% over the next five years. India’s growth stands out, especially given global challenges like geopolitical tensions, trade policy risks, and ongoing conflicts.

Inflation: Retail inflation has softened from 5.4% in FY24 to 4.9% in April–December 2024, with RBI and IMF projecting it to align with the 4% target by FY26.

Capital Expenditure (CAPEX): CAPEX has shown consistent growth, with an 8.2% year-on-year increase during July–November 2024, reflecting the government’s focus on infrastructure development.

Exports Resilience: Non-petroleum and non-gems & jewellery exports grew by 9.1% during April–December 2024, showcasing India’s ability to withstand global volatility.

Monetary and Financial Sector Developments

Banking Sector Health: Credit growth has outpaced nominal GDP growth for two consecutive years, with the credit-GDP gap narrowing to -0.3% in Q1 FY25 from -10.3% in Q1 FY23. Gross NPAs of Scheduled Commercial Banks fell to a 12-year low of 2.6% in September 2024.

Insolvency Resolution: Under the Insolvency and Bankruptcy Code (IBC), ₹3.6 lakh crore was realized from the resolution of 1,068 plans, amounting to 161% of liquidation value and 86.1% of fair value.

Capital Markets: Indian stock markets outperformed emerging market peers, with total resource mobilization from primary markets reaching ₹11.1 lakh crore during April–December 2024, a 5% increase over FY24.

Insurance and Pension Growth: Total insurance premiums grew by 7.7% in FY24, reaching ₹11.2 lakh crore, while pension subscribers increased by 16% year-on-year as of September 2024.

External Sector 

Trade Performance: Overall exports (merchandise + services) grew by 6% year-on-year in the first nine months of FY25, with services exports surging by 11.6%. India ranks as the second-largest global exporter in ‘Telecommunications, Computer, & Information Services’, commanding a 10.2% market share.

FDI Revival: Gross FDI inflows increased by 17.9% year-on-year to USD 55.6 billion in the first eight months of FY25, up from USD 47.2 billion in the same period of FY24.

FOREX Reserves: India’s FOREX reserves stood at USD 640.3 billion as of December 2024, covering 10.9 months of imports and approximately 90% of external debt.

Prices and Inflation Dynamics

Global Inflation: Global inflation moderated to 5.7% in 2024 from its peak of 8.7% in 2022.

Retail Inflation in India: Retail inflation declined from 5.4% in FY24 to 4.9% in April–December 2024, with further alignment to the 4% target expected by FY26.

Agricultural Reforms: Development of climate-resilient crop varieties and enhanced farming practices are emphasized to mitigate the effects of extreme weather events and ensure long-term price stability.

Medium-Term Outlook 

Vision for Viksit Bharat: To achieve the vision of a developed India by 2047, the economy needs to grow at 8% annually over the next decade. This requires systematic deregulation, enhancing economic freedom, and empowering individuals and businesses.

Ease of Doing Business 2.0: The focus is on creating a robust SME sector, liberalizing standards, and reducing tariffs and fees at the state level.

Geo-Economic Fragmentation (GEF): The global shift from globalization to GEF necessitates realignments in trade and economic policies, with a focus on reducing dependency on China for energy transition and manufacturing.

Investment and Infrastructure Development

Public Spending: The Union Government’s capital expenditure on infrastructure grew by 38.8% from FY20 to FY24. Key achievements include:

• Construction of 5,853 km of National Highways in FY25 (April–December).

• Commissioning of 2,031 km of railway network and introduction of 17 new pairs of Vande Bharat trains.

• Renewable Energy: Renewable energy capacity increased by 15.8% year-on-year by December 2024, with renewables now accounting for 47% of total installed capacity.

• Digital and Social Infrastructure: Initiatives like Jal Jeevan Mission, Swachh Bharat Mission, and Pradhan Mantri Awas Yojana have significantly improved access to basic amenities. The rollout of 5G services and expansion of 4G connectivity to remote areas have also progressed.

Industrial and Services Sector Growth

Industrial Growth: The industrial sector is expected to grow by 6.2% in FY25, driven by electricity and construction. Smart manufacturing and Industry 4.0 initiatives are gaining traction, with 99% of smartphones now manufactured domestically.

Services Sector: The services sector’s contribution to GVA rose to 55.3% in FY25, with services exports growing by 12.8% during April–November FY25. India ranks seventh globally in services exports, with a 4.3% share.

Agriculture and Food Management

Agricultural Contribution: Agriculture contributes approximately 16% to GDP, with high-value sectors like horticulture, livestock, and fisheries driving growth.

Foodgrain Production: Kharif foodgrain production for 2024 is estimated at 1,647.05 lakh metric tonnes, an increase of 89.37 LMT from the previous year.

Food Security Initiatives: The National Food Security Act (NFSA) and PM Garib Kalyan Anna Yojana (PMGKAY) have ensured free food grains for millions, reflecting the government’s long-term commitment to food security.

Climate and Environment

Renewable Energy: India’s non-fossil fuel electricity generation capacity reached 2,13,701 megawatts as of November 2024, accounting for 46.8% of total capacity.

Lifestyle for Environment (LiFE): This India-led global movement aims to enhance sustainability efforts, with potential global savings of USD 440 billion by 2030 through reduced consumption.

Social Sector and Employment

Social Services Expenditure: Government spending on social services grew at a CAGR of 15% from FY21 to FY25, reducing inequality and improving health outcomes.

Employment Growth: The unemployment rate declined to 3.2% in 2023-24, with initiatives like the PM-Internship Scheme and EPFO payroll additions signaling healthy formal employment growth.

Labour in the AI Era 

AI’s Potential: AI is expected to automate economically valuable work, but India’s young, tech-savvy population positions it to leverage AI for productivity and innovation.

Augmented Intelligence: The future lies in integrating human and machine capabilities to enhance efficiency and job performance.

Policy Response: Collaborative efforts between the government, private sector, and academia are essential to mitigate adverse effects and harness AI’s potential.

Conclusion

The Economic Survey 2024-25 underscores India’s resilience and growth potential amidst global challenges. With a focus on deregulation, infrastructure development, and inclusive growth, India is well-positioned to achieve its vision of becoming a developed nation by 2047. The survey highlights the importance of leveraging technology, enhancing sustainability, and fostering innovation to drive long-term economic prosperity.

Melting Glaciers: A Looming Crisis for the Planet

 

In News

The United Nations has declared 2025 as the International Year of Glaciers' Preservation, emphasizing the critical need to protect the world's glaciers. These glaciers, numbering around 275,000, are rapidly melting due to climate change, posing significant threats to ecosystems, economies, and the planet's health.

Introduction

Glaciers, often referred to as the "rivers of ice," are among the most iconic and vital features of our planet's cryosphere. These massive bodies of ice, formed over centuries, play a crucial role in regulating Earth's climate, supporting ecosystems, and providing freshwater to billions of people. However, in recent decades, glaciers around the world have been melting at an alarming rate, driven primarily by human-induced climate change.

What Are Glaciers and Why Are They Important?

Glaciers are large, persistent bodies of ice that form over centuries from the accumulation and compaction of snow. They are found in polar regions, high mountain ranges, and even some tropical regions. Glaciers serve several critical functions:

• Freshwater Reservoirs: Glaciers store about 69% of the world's freshwater, acting as natural reservoirs that release water gradually, especially during warmer months.

• Climate Regulators: Glaciers reflect sunlight (a phenomenon known as albedo effect), helping to regulate global temperatures.

• Ecosystem Support: Glaciers feed rivers and lakes, supporting diverse ecosystems and biodiversity.

• Human Dependence: Over 1.9 billion people rely on glaciers and snowmelt for drinking water, agriculture, and hydropower.

Why Are Glaciers Melting?

The primary driver of glacier melt is global warming, caused by the increase in greenhouse gas emissions from human activities such as burning fossil fuels, deforestation, and industrial processes. Key factors contributing to glacier melt include:

• Rising Temperatures: The Earth's average temperature has risen by 1.1°C since the pre-industrial era, with polar and high-altitude regions warming at twice the global average.

• Black Carbon Deposition: Soot and black carbon from industrial emissions and wildfires settle on glaciers, reducing their reflectivity and accelerating melt.

• Ocean Warming: Warmer ocean temperatures are causing the melting of ice shelves and glaciers in Antarctica and Greenland.

• Altered Weather Patterns: Climate change is disrupting precipitation patterns, reducing snowfall in some regions and increasing melt rates.

Consequences of Melting Glaciers

The rapid melting of glaciers has far-reaching consequences for the planet, ecosystems, and human societies:

Rising Sea Levels

• Melting glaciers contribute significantly to global sea level rise. For example, the Greenland Ice Sheet and Antarctic glaciers are losing ice at an unprecedented rate.

• If all glaciers were to melt, global sea levels could rise by up to 70 meters, displacing millions of people and submerging coastal cities.

Water Scarcity

• Glaciers act as natural water towers, supplying freshwater to rivers and lakes. Their disappearance threatens water security for billions of people, particularly in regions like the Himalayas, which feed major rivers such as the Ganges, Brahmaputra, and Indus.

• Reduced glacier meltwater could lead to droughts, crop failures, and conflicts over water resources.

Ecosystem Disruption

• Glaciers support unique ecosystems, from alpine flora and fauna to marine life in polar regions. Melting glaciers disrupt these habitats, leading to biodiversity loss.

• For example, the decline of Arctic sea ice threatens species like polar bears, seals, and penguins.

Increased Natural Disasters

• Melting glaciers can trigger catastrophic events such as glacial lake outburst floods (GLOFs), where glacial lakes burst and flood downstream areas.

• The destabilization of ice sheets and glaciers also increases the risk of landslides and avalanches.

Cultural and Economic Impacts

• Many indigenous communities, such as the Inuit in the Arctic and Sherpas in the Himalayas, rely on glaciers for their cultural practices and livelihoods. Glacier loss threatens their way of life.

• Tourism industries dependent on glaciers, such as skiing and mountaineering, are also at risk.

Case Studies: Glaciers Under Threat

The Himalayas

• The Hindu Kush Himalayan region, often called the "Third Pole," is home to the largest concentration of glaciers outside the polar regions. These glaciers feed major rivers that support over 1.3 billion people.

• Studies show that Himalayan glaciers are losing ice at a rate of 1.5 to 2 meters per year, with some glaciers expected to disappear by 2100.

The Arctic and Greenland

• The Greenland Ice Sheet is losing ice at a rate of 286 billion tons per year, contributing significantly to sea level rise.

• Arctic sea ice has shrunk by 13% per decade, with some predictions suggesting an ice-free Arctic summer by 2050.

The Alps

• Glaciers in the European Alps have lost 60% of their volume since 1850, with some smaller glaciers already disappearing.

• The iconic Aletsch Glacier, the largest in the Alps, is retreating rapidly, threatening water supplies and tourism.

What Can Be Done to Address Glacier Melt?

Addressing the crisis of melting glaciers requires urgent and coordinated global action. Key solutions include:

Mitigating Climate Change

• Reduce Greenhouse Gas Emissions: Transitioning to renewable energy sources, such as solar and wind, and phasing out fossil fuels are critical steps.

• Carbon Capture and Storage: Investing in technologies to capture and store carbon dioxide can help reduce atmospheric CO2 levels.

Protecting Glaciers

• Reduce Black Carbon Emissions: Implementing policies to reduce soot and black carbon emissions from industries, vehicles, and wildfires can slow glacier melt.

• Glacier Conservation: Establishing protected areas for glaciers and promoting sustainable tourism can help preserve these natural wonders.

Adaptation Strategies

• Water Management: Developing efficient water storage and distribution systems can help communities adapt to reduced glacier meltwater.

• Disaster Preparedness: Building early warning systems and infrastructure to mitigate the impacts of GLOFs and other glacier-related disasters.

Global Cooperation

• International Agreements: Strengthening global climate agreements, such as the Paris Agreement, and ensuring countries meet their emission reduction targets.

• Research and Monitoring: Investing in scientific research and satellite monitoring to track glacier changes and predict future impacts.

Conclusion: A Call to Action

The melting of glaciers is not just an environmental issue; it is a humanitarian crisis that threatens the survival of ecosystems, communities, and future generations. The time to act is now. By addressing the root causes of climate change, protecting glaciers, and implementing adaptation strategies, we can mitigate the impacts of this crisis and preserve these vital natural resources for generations to come.

Unified District Information System for Education Plus (UDISE+) Report

 

In News: The Ministry of Education (MoE) released the Unified District Information System for Education Plus (UDISE+) for 2022-23, on December 30, 2024.

What is the UDISE+ report, and why is it significant?
The Unified District Information System for Education Plus (UDISE+) is India’s largest Management Information System for school education, initiated by the Department of School Education and Literacy (DoSEL), Ministry of Education. It collects and maintains comprehensive data from over 14.72 lakh schools, 98.08 lakh teachers, and 24.8 crore students. 

The report provides detailed insights into enrollment, infrastructure, teacher availability, and other critical aspects of school education. It serves as the most trusted and authoritative database for policymakers, researchers, and educators to assess and improve India’s education system.

How does UDISE+ capture and verify data?
UDISE+ follows a rigorous data collection and verification process:

• Data Entry: Each school receives a unique login ID and password to enter data on the UDISE+ portal. The Head Teacher or Head Master collects and uploads the data using a Data Capture Format (DCF).

• Verification: The data undergoes a three-stage validation process at the Block/Cluster, District, and State levels to ensure accuracy.

• Certification: Once validated, the State Project Director (SPD) certifies the data, making it available on the portal for public access and analysis.

This multi-tiered process ensures the reliability and authenticity of the information.

What does the 2023-24 UDISE+ report reveal about student enrollment?
The 2023-24 UDISE+ report highlights a significant decline in student enrollment. The total number of enrolled students dropped to 24.8 crore, down from 25.18 crore in 2022-23. This marks the first major enrollment decline since the pandemic, with a reduction of over 1 crore students compared to previous years. The average enrollment over the last five years was around 26.36 crore, indicating a worrying trend.

How does enrollment vary by gender and minority representation?
The report provides a detailed breakdown of enrollment by gender and minority groups:

• Gender: Boys account for 51.9% of total enrollment, while girls make up 48.1%.

• Minority Representation: Minority students constitute about 20% of total enrollment. Among them:

• Muslims represent 79.6%,

• Christians 10%,

• Sikhs 6.9%,

• Buddhists 2.2%,

• Jains 1.3%, and

• Parsis 0.1%.

• Social Categories:

• Scheduled Caste (SC) enrollment dropped from 4.59 crore in 2022-23 to 4.47 crore in 2023-24.

• Other Backward Classes (OBC) enrollment decreased slightly from 11.45 crore to 11.2 crore.

What does the report say about school infrastructure and facilities?
The report highlights both progress and gaps in school infrastructure:

• Basic Amenities: Over 90% of schools now have essential facilities like electricity and gender-specific toilets.

• Advanced Facilities: Significant gaps remain in advanced infrastructure:

• Only 57.2% of schools have functional computers,

• 53.9% have internet access, and

• 52.3% are equipped with ramps and railings for accessibility.

• Challenges: The lack of technological readiness and accessibility features in schools underscores the need for targeted investments to bridge these gaps.

What are the possible reasons for the decline in student enrollment?
Several factors could explain the enrollment drop:

• Pandemic Aftermath: The COVID-19 pandemic disrupted education, leading to increased dropout rates, especially among marginalized communities.

• Economic Pressures: Families facing financial hardships may have pulled children out of school to contribute to household income.

• Migration: Reverse migration during the pandemic may have resulted in children not re-enrolling in schools.

• Lack of Access: Limited availability of digital infrastructure during online learning may have discouraged continued enrollment.

What steps can be taken to address the enrollment decline?
To reverse the enrollment decline, the following measures are essential:

• Targeted Outreach: Launch campaigns to re-enroll dropouts, especially from marginalized communities.

• Financial Support: Provide scholarships, free uniforms, and mid-day meals to reduce the economic burden on families.

• Digital Inclusion: Expand access to digital devices and internet connectivity to ensure no child is left behind in online or hybrid learning.

• Community Engagement: Work with local communities to address cultural and social barriers to education.

How can India improve school infrastructure and facilities?
Improving school infrastructure requires a multi-pronged approach:

• Increased Funding: Allocate more resources to upgrade facilities like computers, internet access, and ramps.

• Public-Private Partnerships: Collaborate with private entities to provide advanced technological tools and training.

• Teacher Training: Equip teachers with the skills to use digital tools effectively in classrooms.

• Monitoring and Evaluation: Regularly assess infrastructure gaps and ensure timely implementation of improvement projects.

What role does UDISE+ play in shaping education policies?
UDISE+ serves as a critical tool for evidence-based policymaking. By providing accurate and comprehensive data on enrollment, infrastructure, and teacher availability, it helps policymakers:

• Identify gaps and prioritize interventions.

• Allocate resources effectively to underserved areas.

• Monitor progress toward education goals like the National Education Policy (NEP) 2020.

• Ensure accountability and transparency in the education system.

Conclusion
The UDISE+ report 2023-24 highlights the urgent need to address declining enrollment and infrastructure gaps in India’s education system. By leveraging data-driven insights, policymakers can design targeted interventions to ensure equitable access to quality education for all children. Strengthening school infrastructure, re-enrolling dropouts, and fostering digital inclusion will be key to building a resilient and inclusive education system.