Union Finance Minister Nirmala Sitharaman on January 29, 2026, tabled the Economic Survey 2025–26 in Parliament, offering a comprehensive snapshot of India’s economic performance and outlook ahead of the Union Budget scheduled for February 1. Prepared by the Department of Economic Affairs under the Ministry of Finance, the Survey evaluates the economy’s trajectory over the past year while outlining expectations and challenges for the coming financial year.
The Economic Survey projected India’s gross domestic product to grow between 6.8% and 7.2% in FY27, supported by strong macroeconomic fundamentals, resilient domestic demand, and a series of ongoing regulatory reforms. The government noted that despite global uncertainties, India remains one of the fastest-growing major economies and is well-positioned to navigate external pressures, including a more challenging global trade environment shaped by tougher tariff regimes.
According to the Survey, the Indian economy maintained strong growth momentum in FY26, with real GDP growth estimated at 7.4% as per the First Advance Estimates. Growth during the year was largely driven by domestic demand, with private consumption and capital formation continuing to provide steady support. On the supply side, the services sector emerged as the key contributor, while manufacturing activity showed signs of strengthening and agriculture provided stability despite structural constraints.
The Survey highlighted that the global economic environment remains uncertain, shaped by geopolitical tensions, trade disruptions, and uneven growth and inflation trends across major economies. While global activity has shown resilience in the near term, underlying vulnerabilities persist, including elevated fiscal pressures, fragmented supply chains, and an increasing use of economic policies for strategic purposes.
It also drew attention to the divergent trajectories of central bank policy rates across countries, noting that variations in growth and inflation dynamics have led to differing monetary stances. This divergence, the Survey said, has important implications for capital flows, as global investors continue to seek higher returns across markets, influencing currency movements, bond yields, and equity sentiment.
The Economic Survey reviewed key macroeconomic indicators such as inflation trends, monetary policy conditions, fiscal consolidation efforts, and the performance of the external sector, including exports, imports, foreign exchange reserves, and capital inflows. It also assessed social indicators covering employment, health, and education, alongside special chapters focusing on structural reforms and emerging economic themes.
Market participants are expected to closely study the Survey’s commentary on global risks, fiscal discipline, and sector-specific trends, as these insights often shape investor expectations ahead of the Budget. Although the Survey is not policy-binding, it plays a critical role in setting the narrative framework for fiscal decisions and economic reforms.
Recalling the previous edition, the Economic Survey for 2024–25 had projected real GDP growth of 6.4% and emphasised deregulation as a key driver for achieving the vision of a developed India. It also highlighted easing inflation, a revival in foreign direct investment inflows, and the need for sustained infrastructure investment to support long-term growth.
With the Economic Survey now tabled, attention shifts to the Union Budget 2026, which is expected to outline the government’s fiscal strategy and policy priorities amid a volatile global backdrop. The Survey has laid the groundwork for a growth-oriented approach, balancing domestic expansion with caution against external risks.