India’s Economic Survey 2025-26, tabled by Finance Minister Nirmala Sitharaman in Parliament, projects a robust 7.4% GDP growth for FY26 stronger than last year’s 6.3-6.8% estimate signaling confidence in the economy’s resilience despite global uncertainties.
Prepared under Chief Economic Adviser V. Anantha Nageswaran, the document highlights steady macro fundamentals even as the rupee hit a record low of 92 against the U.S. dollar. The Reserve Bank of India’s latest forecast pegs consumer inflation at 2.0% for FY26, down from 2.6%, allowing room for supportive monetary policy.
The government is likely to target a fiscal deficit of 4.2% of GDP in FY27, modestly lower than 4.4% in the current year. Nageswaran noted that the extended Survey reflects the range of challenges India faces from trade disruptions to employment stability as it navigates a shifting global order.
Prime Minister Narendra Modi, in his remarks before the session, cited the India-European Union Free Trade Agreement as a transformative step, urging businesses to leverage access to new markets. President Droupadi Murmu, in her address, added that India continues to attract strong foreign inflows, totaling nearly $750 billion over the past decade.
The Survey focuses on private investment momentum, job creation, and export competitiveness as critical growth levers. Services such as finance and real estate are projected to expand nearly 10% this fiscal, underscoring the sector’s role in sustaining economic momentum ahead of Sitharaman’s record ninth Budget presentation.
