Economic Survey 2026
India enters FY26 with strong economic momentum supported by stable macroeconomic fundamentals, sustained policy support, and broad-based sectoral performance. Despite a challenging global environment, the economy has remained resilient, with robust growth, historically low inflation, improving labour market indicators, and strengthening external and financial buffers. Coordinated fiscal, monetary, and structural policies have reinforced macroeconomic stability while supporting investment, consumption, and inclusion.
India’s growth outlook remains robust, underpinned by strong macroeconomic fundamentals and broad-based demand momentum. As per the First Advance Estimates, real GDP and Gross Value Added (GVA) are projected to grow by 7.4% and 7.3% respectively in FY26.
Economic Survey 2026 Highlights
Strong Economic Momentum
- India enters FY26 with resilient growth despite global challenges.
- Stable macro fundamentals, coordinated fiscal–monetary policy, and broad-based sectoral performance support growth.
Robust GDP Growth
- Real GDP growth projected at 7.4% and GVA at 7.3% in FY26.
- Medium-term growth outlook remains strong, with FY27 GDP growth estimated at 6.8–7.2%.
Low and Stable Inflation
- Average headline CPI inflation (Apr–Dec 2025) at a historic low of 1.7%.
- RBI cut FY26 inflation forecast to 2.0%.
- Inflation outlook remains benign due to strong supply-side conditions.
Sectoral Growth Drivers
- Agriculture: Expected growth of 3.1% in FY26, supporting rural demand.
- Industry: Growth projected at 6.2%, with manufacturing showing strong recovery.
- Services: Fastest-growing sector at 9.1%, contributing over 56% of GVA.
Manufacturing & Investment Push
- PLI schemes attracted over ₹2 lakh crore in investments.
- Generated ₹18.7 lakh crore in production and 12.6 lakh jobs.
- India’s Global Innovation Index rank improved to 38th in 2025.
Improving Labour Market
- Total employment reached 56.2 crore in Q2 FY26.
- Unemployment declined to 4.8%.
- Female labour participation increased to 35.3%.
- Over 31 crore workers registered on e-Shram portal.
Strong Trade & External Sector
- Total exports touched USD 825.3 billion in FY25.
- Services exports hit a record USD 387.5 billion.
- Forex reserves at USD 701.4 billion, covering ~11 months of imports.
- India remained the world’s largest remittance recipient (USD 135.4 billion).
Industrial Output Recovery
- IIP grew 7.8% in December 2025 (highest in 2+ years).
- Core sectors like cement, steel, electricity, and fertilizers showed strong growth.
Fiscal Strengthening
- Improved tax buoyancy and widening tax base.
- Direct tax share rose to 58.8% in FY25.
- Government capex increased to 4% of GDP.
- General government debt-to-GDP reduced by 7.1 percentage points since 2020.
Monetary Policy Support
- RBI cut repo rate by 100 bps to 5.25%.
- CRR reduced to 3.0%, ensuring surplus liquidity.
- Strong credit transmission and rising money supply.
Healthy Banking & Financial System
- GNPA at multi-decade lows.
- Credit growth rebounded to 14.5% YoY.
- MSME credit grew 21.8%, with micro & small enterprises at 24.6%.
Rising Financial Inclusion & Market Participation
- Financial Inclusion Index rose to 67.0 in March 2025.
- Household shift toward equities and mutual funds accelerated.
- Capital markets mobilised ₹10.7 lakh crore in FY26 (till Dec).