Lok Sabha Question No. 2632 (UNSTARRED), answered on 2025-03-17
Subject: Economic Growth of the Country's GDP
Ministry: FINANCE
Asked by: Shri Haribhai Patel

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION No. 2632

TO BE ANSWERED ON 17 MARCH 2025

## ECONOMIC GROWTH OF THE COUNTRY'S GDP

## 2632. Shri Haribhai Patel:

Will the Minister of FINANCE be pleased to state:

- a) the details of the expected economic growth of the country's GDP in the Financial Year 2025-26, sector-wise;
- b) the  strategies  being  implemented  to  position  India  as  a  leader  in  global  economic  forums  while leveraging its growth potential for regional cooperation;
- c) the details on the long-term impact generated by the Government-funded infrastructure projects on regional development and employment generation in Mahesana Lok Sabha Constituency;
- d) the details of the steps taken/being taken by the Government to further strengthen the services sector that has shown resilience in different areas during the current financial year; and
- e) whether  the  Government  is  taking  any  steps  or  proposing  additional  steps  to  mitigate  global headwinds and safeguard India's economic growth trajectory in the coming quarters, if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- a) The Union Budget 2025-26 has assumed a nominal GDP growth of 10.1 per cent for 2025-26. As per the Economic Survey 2024-25, the real GDP growth for 2025-26 is expected to be between 6.3 and 6.8 per cent. The Government has not published any sector-wise projections of growth for 2025-26.
- b) The  Government  has  been  advocating  for  strong,  sustainable,  balanced  and  inclusive  global economic  growth  in  various  global  economic  forums.  While  being  one  of  the  fastest  growing  major economies, India has also been voicing the concerns and growth needs of the Global South. The initiatives taken during the Indian G20 Presidency towards strengthening multilateral development banks, advancing financial inclusion and productivity gains through digital public infrastructure, roadmap on crypto assets, financing  cities  of  tomorrow,  enhancing  tax  transparency  and  mobilising  climate  finance  and  enabling finance  for  sustainable  development  goals  have  generated  significant  interest  in  the  global  economic discussions.
- c) Public  infrastructure  projects  enhance  physical  and  digital  connectivity,  job  opportunities  and market  access,  thereby  fueling  economic  growth  and  reducing  regional  disparities  in  development. Government-funded projects in infrastructure sectors like railways, roads, water supply and irrigation in Mahesana are likely to lay a similar impact.

d) The  Union  Budget  2025-26  has  proposed  various  measures  to  strengthen  the  services  sector. These  include  the  initiatives  proposed  for  micro,  small,  and  medium  enterprises,  skill  development, private sector innovation and R&D, centres of excellence in artificial intelligence, national framework as guidance  for  states  to  promote  Global  Capability  Centres  in  emerging  tier  2  cities  and  support  to  gig workers. Commercial services benefit from a progressive reduction in infrastructure bottlenecks, logistics costs  and  easing  of  regulatory  compliances.  The  Government's  trade  facilitation  measures,  export incentives, introduction of digital trade platforms, trade agreements, Districts as Export Hubs initiative, logistics  integration  and  Foreign  Trade  Policy  designed  to  improve  trade  competitiveness  and  market access are expected to strengthen exports and related services.

e) Amidst global headwinds, the Government's continued emphasis on robust capital expenditure, infrastructure  build-up,  urban  development,  employment  generation,  skill  development  and  agricultural resilience is expected to help sustain economic growth in the coming quarters. The Budget 2025-26 has proposed  a  multisectoral  agenda  for  strengthening  the  economy,  projecting  agriculture,  MSMEs, investment and exports as growth engines with various measures under each of them.

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