On January 29, 2026, the Government of India presented the Economic Survey 2025‑26 in Parliament—a comprehensive annual review of the country’s economic performance and outlook, prepared ahead of the Union Budget 2026‑27. The survey provides the government’s assessment of key macroeconomic indicators, policy interventions, structural reforms, and future growth prospects.
Presented by Union Finance Minister Nirmala Sitharaman, the document draws on the latest economic data and serves both as a performance report and a roadmap for policy priorities in the year ahead. The survey was authored under the leadership of the Chief Economic Adviser, reflecting deep analytical perspectives on India’s evolving economic story.
Prime Minister Modi’s Take: A “Snapshot of Growth and Reform”
Prime Minister Narendra Modi highlighted the Economic Survey as a snapshot of India’s economic progress and reform journey in the face of global uncertainties. He described the report as reflecting India’s “Reform Express”—a narrative of sustained growth, resilient macroeconomic fundamentals, and inclusive development.
According to the Prime Minister, the survey underscores:
- Strong macroeconomic fundamentals and growth momentum.
- The expanding role of innovation, entrepreneurship, and infrastructure in nation‑building.
- Continued focus on inclusive priorities such as farmers’ welfare, MSMEs, youth employment and social upliftment.
Growth Outlook: Fastest‑Growing Major Economy
A key highlight of the Economic Survey is India’s continued position as the fastest‑growing major economy. For the current fiscal year (FY 2025‑26), the survey reports an estimated real GDP growth of 7.4 percent—an impressive feat given global volatility and geopolitical tensions.
Looking ahead to FY 2026‑27, India’s economy is projected to grow between 6.8 per cent and 7.2 per cent, supported by strong domestic demand and ongoing structural reforms.
Macroeconomic stability remains robust:
- Inflation has remained controlled at historically low levels, contributing to improved consumer confidence.
- Foreign exchange reserves have strengthened, boosting India’s external resilience.
Domestic Demand: The Core of Growth
The survey highlights domestic demand — especially private consumption — as the main driver of growth. With consumption accounting for over 61 per cent of GDP, India’s economic expansion is deeply rooted in the strength of households, services, and domestic markets.
This consumer‑led momentum has insulated the economy against external shocks and continues to drive investment, employment, and credit expansion.
Sectoral Performances and Structural Shifts
The Economic Survey 2025‑26 provides detailed sectoral analysis, showing notable progress across traditional and emerging segments.
Manufacturing and Investment
- Manufacturing has gained traction with strong growth in Gross Value Added (GVA).
- Production‑Linked Incentive (PLI) schemes across multiple sectors have attracted large investments and spurred job creation.
- Logistics and transport infrastructure have been rapidly expanded, strengthening connectivity and competitiveness.
Technology, Innovation and Services
India’s services sector remains the backbone of growth—contributing over half of GDP—with IT, finance, tourism, and digital services performing strongly. Exports in services have accelerated, enhancing India’s global trade footprint.
The survey also highlights the growing role of artificial intelligence (AI), digital ecosystems, and high‑skill services as future growth engines.
Strategic Self‑Reliance and Innovation
The Economic Survey introduces a calibrated strategy for strategic resilience—moving beyond import substitution to develop critical indigenous capabilities in high‑tech sectors, while increasing India’s indispensability in global supply chains.
India has recorded marked improvements in the Global Innovation Index, reflecting technological advancement and innovation intensity.
Infrastructure: Building the Growth Foundation
Infrastructure development forms a central pillar of India’s growth narrative:
- Capital expenditure has grown significantly, accelerating national projects.
- High‑speed highways, rail expansions, and airport networks have scaled up rapidly.
- The power sector and renewable energy capacity have seen substantial expansion, with India now ranking among the top globally in clean energy deployment.
Social Sector Progress
The Economic Survey also details improvements in human capital and social outcomes:
- Education infrastructure has expanded, with higher enrolment rates at all levels.
- Health metrics, such as maternal and child mortality, have improved faster than global averages.
- Labour welfare programmes and registries (like e‑Shram) now cover tens of crores of workers, boosting coverage and protection.
Emerging Concerns and Policy Suggestions
The survey doesn’t shy away from contemporary challenges. It flags issues such as digital addiction and the need for age‑appropriate online access limits — signalling it as an emerging area for policy discourse.
On finance and markets, the report suggests tax reforms on debt instruments to reduce the cost of capital and deepen capital markets — a move that could boost investment and liquidity.
Fiscal and Monetary Discipline
Fiscal consolidation is a priority, with the government maintaining a downward trajectory for the fiscal deficit, underscoring disciplined public finances that support sustainable growth.
Monetary policy has worked in tandem with fiscal measures, keeping inflation low while supporting credit flow and investment.
Significance and the Road Ahead
The Economic Survey 2025‑26 accomplishes two key objectives:
- It records India’s macroeconomic performance, offering a clear picture of stability, growth and structural change in the past year.
- It lays out policy priorities and frameworks that will shape the government’s approach in the Union Budget 2026‑27, especially in areas like infrastructure, innovation, labour markets, and global competitiveness.
With macroeconomic fundamentals firmly in place and structural reforms gaining traction, the survey projects confidence in India’s prospects—not just as a fast‑growing economy, but as a resilient and increasingly influential player in the global economic landscape.
