Economic Growth Overview

The National Statistics Office (NSO) released the first advance estimates for India's GDP growth, indicating a sharp slowdown to 6.4% in FY25 from 8.2% in FY24. Nominal GDP growth remains stable at 9.7%, slightly higher than FY24's 9.6%.

Fiscal Implications and Government Strategy

• The government aims to hit a fiscal deficit target of 4.9% of GDP, aided by buoyant revenue collections and weaker capital expenditure.

Supply and Demand-Side Metrics

• The Gross Value Added (GVA) metric, a supply-side estimate, is more reliable than the GDP measurement for India.
• Both GDP and GVA grew by 6.4% in FY25, lower than the economy's potential growth.

Historical Context and Growth Drivers

• Pre-Covid, GDP and GVA averaged 6.7% and 6.4% respectively from FY16 to FY20.
• New growth drivers include services exports and improved banking and corporate balance sheets, although government debt and household leverage have increased.

Current and Projected Performance

• Growth is expected to strengthen in H2 FY25 to 6.6% for GVA and 6.7% for GDP.
• NSO's estimates are based on data from the first eight months of FY25 and are subject to revision.

Sectoral Performance

• Stronger growth is anticipated in agriculture, with GVA growth accelerating to 4.5% in H2 from 2.7% in H1.
• Private final consumption expenditure is expected to grow by 7.3% in FY25, compared to 4% in FY24.
• The construction sector continues to show robust growth at 8.6%, outperforming pre-Covid levels.

Future of Jobs in India by 2030

According to 'Future of Jobs 2025' report by the World Economic Forum (WEF), several factors will influence the future of jobs in India:

• Increased Digital Access
• Geopolitical Tensions
• Climate-Mitigation Efforts

These elements will be pivotal in shaping employment and skills demand in the coming years.

Key Trends and Investments

Indian companies are heavily investing in new technologies:

• Artificial Intelligence (AI)
• Robotics
• Autonomous Systems

As a result, job roles such as Big Data specialists, AI and machine learning experts, and security management professionals are projected to grow rapidly.

Shift in Hiring Practices

To meet talent needs, Indian organizations are:

• Hiring from diverse talent pools.
• Adopting skills-based hiring approaches by removing degree requirements.

AI Adoption and Training

Highlights from the report include:

• 96% of Indian organizations are implementing AI programs, compared to 88% globally.
• India and the US lead in generative AI training enrollments on platforms like Coursera.

Corporate sponsorship greatly enhances GenAI training uptake.

Technological Transformation

Indian employers expect significant shifts in operations with:

• 35% prioritizing semiconductors and computing technologies.
• 21% focusing on quantum and encryption technologies.

Skill Evolution by 2030

By 2030, it is anticipated that:

• 38% of workers' core skills in India will evolve.
• This is slightly lower than the global forecast of 39%.