New Delhi: The Economic Survey 2024-25 revealed that India's economy has witnessed significant growth with an impressive comeback after the COVID-19 pandemic, outshining pre-pandemic levels in many key sectors.
The survey, which referred to the data of Q2 FY25 (ending September 2024), says that the economy of the country showed rapid growth and prevented permanent loss of output. This trend resulted in the surpassing of the aggregate Gross Value Added (GVA) from its pre-pandemic trend in Q1 FY25 and continued with the same increasing trend, it says.
Highlighting a sectoral analysis, the survey claimed that the agriculture sector is among the top performers and showed consistent growth, operating well above trend levels.
“The industrial sector has also found its footing above the pre-pandemic trajectory. The robust rate of growth in recent years has taken the services sector close to its trend levels,” it reads.
Among the industrial sub-sectors, “Construction has been a standout, gaining momentum since mid-FY21 and soaring approximately 15 per cent above its pre-pandemic trend—an impressive feat driven by robust infrastructure development and housing demand.”
The utility sector, including electricity, gas, water supply, and other services, reached its pre-pandemic trend by the end of FY23 and has consistently stayed above these levels, the survey says. “Manufacturing, while steadily recovering, remains slightly below its pre-pandemic trajectory. Meanwhile, mining continues to operate below its pre-pandemic trend,” it claims.
The services sector, which was most impacted, has also been on a recovery path, with financial, real estate and professional services taking the lead, surpassing pre-pandemic trend levels by the end of FY23.
“Public administration, defence, and other services followed suit, exceeding the trend for the first time in Q1 of FY25 since the onset of the pandemic,” the survey claims.
However, it says that sectors like trade, hotels, transport, and communication services showed a gradual growth to catch up with the pre-pandemic trend.
“These contact-intensive sectors faced challenges due to lockdown, restricted demand for travel, and reduced demand for hospitality, entertainment, and personal services,” the survey says.
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