Economic Survey Focuses on AI, Infra Spending

New Delhi, Jan 31 (PTI) The Economic Survey presented in Parliament rightly focuses on artificial intelligence, innovation and higher infrastructure expenditure with a pitch for private sector participation, according to experts.

The key pre-budget document was tabled in both the Houses of Parliament by Finance Minister Nirmala Sitharaman.

According to the 436-page document, India's economy is likely to expand by 6.3-6.8 per cent in the coming fiscal, much lower than what is needed to become a developed country, and requires deregulation and reforms in areas like land and labour to stimulate growth.

Madan Sabnavis, Chief Economist at Bank of Baroda, said it has projected growth of 6.3-6.8 per cent for 2025-26, which will be considered by the Budget tomorrow.

"It does highlight the uncertainty in the global economic order and recommends further reforms, especially in terms of ease of doing business to take the economy ahead. It is positive of consumption and investment picking up in the second half of FY25, which should stabilise further in FY26," Sabnavis said.

Ranen Banerjee, Partner and Leader Economic Advisory, PwC India, said the document summarises the challenges facing the Indian economy, with more headwinds than tailwinds listed.

"It may be challenging to achieve the projected growth rate of 6.3–6.8 per cent, given that growth in the fast lane is predicated on difficult deregulation and reforms at the grass-roots level," he said.

Banerjee further said the survey hints at continued fiscal consolidation in the upcoming budget and nudging the Monetary Policy Committee for policy support towards the growth engine in the next fiscal.

Debasish Mishra, Partner and Chief Growth Officer, Deloitte South Asia, said the survey focuses on job creation, innovation, giving a big thrust to manufacturing, stepping up on infrastructure expenditure with a pitch for private sector participation in joining hands with the government to achieve the Viksit Bharat target.

"The focus on the adoption of artificial intelligence in India's services sector is much-needed. The survey gives a clear roadmap about the country's significant role in the future global supply chain for energy transition technologies," Mishra added.

Aditi Nayar, Chief Economist, Head - Research and Outreach, Icra, said the real GDP growth forecast of 6.3-6.8 per cent made by the survey suggests that the Union Budget is likely to build in a nominal growth of about 10 per cent for 2025-26.

"We believe that assumptions around the tax revenue would be anchored to a similar nominal growth print when the Union Budget for FY2026 is presented tomorrow," Nayar added.

FretBox CEO Ashish Gupta said the Economic Survey 2025 indeed presents a promising outlook for India's economic future.

"The government's initiatives to promote ease of doing business will provide a boost to entrepreneurship and innovation, leading to job creation and economic growth," Gupta said.

Yuji Kato, Director and CEO, Krisumi Corporation, said India's remarkable economic trajectory has positioned it as a key player in the global business landscape. Over the years, progressive reforms and policy shifts -- such as digitisation, tax restructuring, and FDI liberalisation -- have enhanced the ease of doing business, attracting multinational corporations to invest and expand in the country.

"These initiatives have laid a strong foundation, but the next phase of growth demands deeper structural reforms to unlock India's full potential," Kato said.

In his comment on the survey, Pradeep Aggarwal, founder and chairman of Signature Global Group and Chairman, ASSOCHAM - National Council on Real Estate, Housing and Urban Development said the document underscores India's economic resilience.

"As the government drives regulatory reforms and infrastructure expansion, the real estate sector is set to play a pivotal role in achieving the vision of 'Viksit Bharat 2047' -- a developed and inclusive India," Aggarwal said.