The Economic Survey, tabled a day ahead of Finance Minister Nirmala Sitharaman’s Budget 2025 speech, signals a potential push for large-scale deregulation. Earlier, Chief Economic Advisor (CEA) Anantha Nageswaran emphasised that easing regulatory burdens could enhance innovation and competitiveness, urging governments at both central and state levels to support small enterprises in this regard.
Nageswaran had maintained that while fiscal incentives have a role in job creation, businesses must strike a balance between labour- and technology-intensive growth. He also underscored the need to move away from a ‘jugaad’ approach, advocating for India to prioritise quality across industries.
On the economic outlook, Nageswaran had noted that despite a Q2 GDP growth rate of 5.4%, the broader growth trajectory remains intact. He highlighted that consumption has remained stable, with its share in GDP exceeding 60% in recent quarters. However, he pointed out that urban consumption has softened, potentially due to monsoon-related factors.
The CEA had also raised concerns over wage growth for contractual labour, which has not kept pace with inflation, putting downward pressure on urban consumption. He stressed the need for a long-term focus on employment, income, and spending growth to sustain economic momentum.