Union finance minister Nirmala Sitharaman on Thursday tabled the Economic Survey 2025–26 in Parliament, outlining India’s economic performance over the past year and setting the tone for the Union Budget to be presented on February 1. The annual pre-budget document, prepared under the guidance of chief economic adviser V Anantha Nageswaran, presents a cautiously optimistic outlook amid global uncertainty.
The Economic Survey projects India’s real GDP growth in 2026–27 at 6.8 percent to 7.2 percent, positioning the country among the fastest-growing major economies in the world. This follows an estimated growth of over 7 percent in the current fiscal year, driven largely by domestic demand.
The survey notes that private consumption and capital expenditure continue to support economic momentum, even as global trade and investment flows remain volatile due to geopolitical tensions and slowing growth in advanced economies.
Sustained government capital expenditure
Rising private investment confidence
Expansion in services and manufacturing
Resilient household consumption
Inflation is described as largely under control, aided by timely policy actions by the Reserve Bank of India and easing supply-side pressures. The survey stresses the importance of maintaining price stability to protect household purchasing power and support long-term growth.
On public finances, the document reiterates the government’s commitment to fiscal consolidation while continuing to prioritise growth-enhancing expenditure. It flags the need for careful balancing as welfare demands rise alongside infrastructure spending.
The survey also draws attention to external risks, including:
Ongoing geopolitical conflicts
Weak global demand affecting exports
Volatility in financial markets
Uncertainty around global capital flows
The economic survey highlights structural changes underway in the Indian economy, with a growing contribution from services, digital platforms and emerging manufacturing segments. It points to steady progress in formalisation, supported by digital public infrastructure and compliance reforms.
Employment trends show improvement in labour force participation, particularly among women, though the Survey underlines the need for sustained job creation in high-productivity sectors.
Beyond macroeconomic indicators, the survey raises concerns over emerging social challenges. It flags issues such as rising lifestyle-related health risks, including childhood obesity, and calls for greater policy focus on preventive healthcare and nutrition.
The eonomic survey concludes that while India’s growth fundamentals remain strong, sustaining momentum will require continued reforms, policy stability and prudent macroeconomic management. Its assessments are expected to guide key fiscal decisions in the Union Budget, particularly on capital spending, social sector allocations and measures to boost private investment.
As markets and policymakers await the Budget, the survey provides a comprehensive snapshot of an economy navigating global headwinds with relative resilience.