Union Finance Minister Nirmala Sitharaman on Thursday, January 29, tabled the Economic Survey 2025-26 in Parliament. The survey forecasts India’s economy to grow between 6.8 per cent and 7.2 per cent in the fiscal year 2026-27, due to the ongoing reforms and macroeconomic stability.
While this projection marks a slowdown from the current 2025-26 fiscal year’s 7.4 per cent expected growth, the government document asserts that the country’s economic growth remains resilient, driven by strong domestic demand amidst a fragile global economic environment.
The Economic Survey further underlined that India’s growth will hold up better than expected in comparison to many other leading economies. However, global uncertainties will continue to pose unseen risks.
The Survey noted that the country’s external stability has helped insulate the economy from global volatility. It advises policymakers to remain vigilant as global shocks’ impact could surface with a lag.
Talking about the domestic demand, the Survey notes that strong consumption, particularly in urban areas, has provided strength to the broader economic activity. Tax rationalisation steps undertaken in recent years have given a fillip to urban consumption, providing further momentum to growth.
Economic Survey of India 2025-26: Full Highlights
Key highlights of the Economic Survey 2025-26:
- Economic growth to remain resilient in FY27
- Strong domestic fundamentals, stable inflation and sustained policy momentum to support growth
- Global environment increasingly uncertain due to rising geopolitical tensions and financial fragilities
- Economic gains over last few years aided by structural reforms, higher public investment, improved logistics and strengthening supply-side conditions
- Indian economy better placed due to large domestic market, strong macroeconomic framework and relatively low external vulnerabilities
- Global trade increasingly shaped by security and political considerations
- Countries resorting to tariffs, sanctions and supply-chain realignments
- Three possible global scenarios for 2026: managed disorder, more severe multipolar breakdown, and a small but significant risk of a systemic global shock
- Macroeconomic fundamentals strong due to healthy banking sector balance sheets, comfortable liquidity conditions, robust credit growth, low external liabilities and adequate foreign exchange reserves
- Inflation: price pressures remain ‘tamed and anchored’, only periodic volatility in food prices
- Subdued core inflation due to improved supply-side efficiency, better logistics and expanding productive capacity across sectors
- No immediate threat of higher inflation due to crude oil imports
- Agriculture playing supportive role with normal monsoon patterns and improved farm prospects
- Increased infrastructure investment, and expansion of airports, freight corridors and inland waterways have eased supply bottlenecks and reduced cost pressures
- Capital flows and currency stability may be impacted by geopolitical shocks
- Persistent geopolitical turbulence and disruptions to global capital movement could become regular feature
- Rupee’s valuation does not accurately reflect India’s economic fundamentals
- Policy credibility, predictability and administrative discipline ‘strategic assets’ in evolving global order
- Growth maximisation and shock absorption to run simultaneously, akin to the economy ‘running a marathon and a sprint at the same time’
- Structural reforms, deregulation and an ‘entrepreneurial state’ to play central role
The Survey noted that “in an uncertain and contested world, India’s growth story remains intact”. Resilience, adaptability and long-term policy commitment will chart the path towards a developed India, it added.
About the Economic Survey
The Economic Survey of India is prepared by the Economic Division of the Union Ministry of Finance under the guidance of the Chief Economic Adviser. It provides a comprehensive analysis of the country’s current economic condition, highlighting key trends, challenges and achievements.
The Economic Survey also presents a forward-looking outlook, offering insights and projections for the upcoming fiscal year and signalling potential policy directions.
The tabling of the Economic Survey will be followed by the presentation of the Union Budget 2026–27 in the Lok Sabha on February 1 (Sunday). The Budget Speech will be read by Finance Minister Nirmala Sitharaman.
The Budget Session of Parliament started on January 28 and will span 30 sittings over 65 days before concluding on April 2. Parliament will adjourn for a recess on February 13 and reconvene on March 9.