India's Economic Survey 2025-26 Projects 6.8%-7.2% Growth for FY27

Economic Survey 2025-26 Tabled in Parliament

India's Union Finance Minister, Nirmala Sitharaman, on Thursday, January 29, 2026, tabled the Economic Survey 2025-26 in both the Lok Sabha and Rajya Sabha. This annual document, a crucial precursor to the Union Budget, provides a comprehensive review of the nation's economic performance over the past financial year and outlines the outlook for the coming fiscal period.

Growth Projections and Economic Outlook

The Economic Survey 2025-26 projects India's real Gross Domestic Product (GDP) to grow between 6.8% and 7.2% for the fiscal year 2026-27 (FY27). This forecast follows an estimated growth of 7.4% for the current fiscal year, 2025-26 (FY26), indicating a modest moderation in the growth rate for the upcoming year. The survey highlights India's continued status as the fastest-growing major economy globally.

A key theme emphasized in the survey is a 'Goldilocks' moment for the economy, characterized by robust growth alongside historically low inflation. Headline inflation averaged 1.7% between April and December 2025. The report also notes that domestic demand, driven by both consumption and investment, remains a significant pillar of economic growth. Final private consumption expenditure (PFCE) reached 61.5% of GDP in FY26, while gross fixed capital formation (GFCF) expanded by 7.8%, maintaining an investment rate of 30% of GDP.

Key Economic Indicators and Policy Focus

The Economic Survey, prepared by the Economic Division of the Department of Economic Affairs under the guidance of the Chief Economic Advisor, serves as the government's official 'report card' on the economy. It provides an analytical assessment of India's economic performance, major trends, and future challenges, laying the groundwork for the Union Budget.

Other significant findings from the survey include:

• The Indian banking sector's gross non-performing assets (NPAs) declined to a multi-decade low of 2.2% as of September 2025.
• Foreign exchange reserves increased to $701.4 billion as of January 16, 2026.
• The survey underscored the importance of creating high-quality jobs to leverage India's demographic dividend.
• Industrial activity is expected to gain momentum, with the manufacturing sector showing signs of a structural recovery.
• The services sector continues to be a major contributor to growth.
• The document also highlighted the government's focus on fiscal consolidation and infrastructure creation.

Ahead of the Union Budget

The tabling of the Economic Survey precedes the presentation of the Union Budget 2026-27 by Finance Minister Nirmala Sitharaman, scheduled for Sunday, February 1, 2026. The survey's insights are expected to inform the government's fiscal policies and reform priorities for the upcoming financial year, navigating global uncertainties and aiming for sustained economic stability and growth.