New Delhi: Union Finance and Corporate Affairs Minister Nirmala Sitharaman on Thursday tabled the Economic Survey 2025–26 in Parliament, projecting real GDP growth of 7.4 per cent and Gross Value Added (GVA) growth of 7.3 per cent for FY26, reaffirming India’s position as the fastest-growing major economy for the fourth consecutive year. The Survey estimates India’s potential growth at around 7 per cent and projects real GDP growth in FY27 in the range of 6.8 to 7.2 per cent, even as the global economic environment remains fragile amid geopolitical tensions, trade fragmentation and financial vulnerabilities.
Growth drivers, demand trends: According to the Survey, private consumption remained a key driver of growth, with Private Final Consumption Expenditure rising by 7 per cent in FY26 and accounting for 61.5 per cent of GDP, the highest level since 2012. The improvement was supported by low inflation, stable employment and rising real incomes, alongside strong rural demand and improving urban consumption.Investment activity strengthened during FY26, with Gross Fixed Capital Formation growing by 7.8 per cent and maintaining a share of around 30 per cent of GDP. On the supply side, services continued to drive growth, with GVA in the sector rising by 9.3 per cent in the first half of FY26.
Fiscal , Financial Stability: The Survey highlights improvement in fiscal indicators, with the Centre’s revenue receipts rising to 9.2 per cent of GDP in FY25. India’s prudent fiscal management contributed to sovereign credit rating upgrades by three global agencies in 2025. The banking sector recorded a significant improvement in asset quality, with Gross Non-Performing Assets (GNPAs) declining to a multi-decadal low of 2.2 per cent in September 2025. Credit growth stood at 14.5 per cent as of December 2025, reflecting sustained momentum in lending activity. Financial inclusion expanded further, with 55.02 crore bank accounts opened under the Pradhan Mantri Jan Dhan Yojana as of March 2025, a large share of them in rural and semi-urban areas. The number of unique investors crossed the 12-crore mark in September 2025, with nearly one-fourth being women.
External Sector, Inflation: India’s external sector showed resilience, with total exports reaching USD 825.3 billion in FY25, driven by strong services exports, which touched a record USD 387.6 billion. The country remained the world’s largest recipient of remittances, with inflows of USD 135.4 billion in FY25. Foreign exchange reserves rose to USD 701.4 billion as of January 16, 2026, providing import cover of about 11 months and covering over 94 per cent of external debt. The Survey notes that inflation remained subdued, with average headline inflation at 1.7 per cent during April–December 2025, one of the lowest levels in recent years.
Agriculture, Industry, Infrastructure: Foodgrain production is estimated at 3,577.3 lakh metric tonnes in 2024-25, reflecting strong agricultural performance. Manufacturing growth accelerated in FY26, indicating structural recovery, while Production Linked Incentive (PLI) schemes across 14 sectors attracted over ₹2 lakh crore in investments and generated more than 12.6 lakh jobs.
Infrastructure development continued at scale, with a sharp expansion in highways, railways and airports. India emerged as the world’s third-largest domestic aviation market, while renewable energy capacity and solar installations placed the country among the top global performers.
Social Sector,Human Development: The Survey highlights progress in education and health indicators, expansion of higher education institutions, and improvements in maternal and child mortality rates. Over 31 crore unorganised workers have been registered on the e-Shram portal, with women accounting for more than half of the registrants. The Multidimensional Poverty Index shows a sharp decline in poverty levels over the past two decades, reflecting improvements in living standards and access to basic services. The Economic Survey proposes a calibrated approach to self-reliance through disciplined swadeshi,” focusing on building critical capabilities, reducing input costs and strengthening advanced manufacturing. It also underscores the growing role of artificial intelligence and digital services in shaping India’s economic trajectory.
