♦ Union Finance and Corporate Affairs Minister Nirmala Sitharaman tabled the Economic Survey 2025–26 in Parliament on 29 January 2026, an annual report card of the country’s economic performance in the financial year. It projected real GDP growth of 7.4 percent and Gross Value Added (GVA) growth of 7.3 percent 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 percent and projects real GDP growth in FY27 in the range of 6.8 to 7.2 percent, even as the global economic environment remains fragile amid geopolitical tensions, trade fragmentation and financial vulnerabilities.
Highlights:
♦ According to the Survey, private consumption remained a key driver of growth, with Private Final Consumption Expenditure rising by 7 percent in FY26 and accounting for 61.5 percent 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.
♦ The Survey highlights improvement in fiscal indicators, with the Centre’s revenue receipts rising to 9.2 percent of GDP in FY25. India’s prudent fiscal management contributed to sovereign credit rating upgrades by three global agencies in 2025.
♦ 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.
♦ 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 Rs.2 lakh crore in investments and generated more than 12.6 lakh jobs.
♦ 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.
♦ India’s steady rise as a key player in global trade is evident in its increasing share of both global merchandise exports and commercial services exports, said the Economic Survey 2025-26. According to the WTO’s World Trade Statistics, between 2005 and 2024, India’s share of global merchandise exports has nearly doubled, rising from 1 percent to 1.8 percent.