Economic Survey 2025–26 Tabled in Lok Sabha; GDP Growth Seen at 6.8–7.2% in FY27

New Delhi, 29th January 2026: Finance Minister Nirmala Sitharaman on Thursday presented the Economic Survey 2025–26 in the Lok Sabha, outlining India’s economic performance and prospects. The Survey projects India’s GDP growth for the next financial year (FY27) in the range of 6.8 to 7.2 per cent, reflecting sustained momentum despite global uncertainty.

The annual “report card” of the economy also covers trends in inflation, employment, agriculture, fiscal health, foreign exchange reserves, and exports. According to the document, the Indian economy is expected to grow at 7.4 per cent in the current financial year (FY26), marginally higher than the Reserve Bank of India’s estimate of 7.3 per cent.

On inflation, the Survey noted that price pressures are expected to remain within the RBI’s target band of 4 per cent (±2 per cent). Good kharif output and improved rabi sowing led the RBI to revise its FY26 inflation forecast down to 2 per cent in December 2025. For FY27, inflation is projected at around 3.9 per cent in Q1 and 4 per cent in Q2.

Employment trends remain positive. The Survey said that about 56.2 crore people aged 15 years and above were employed in the second quarter of FY26. Around 8.7 lakh new jobs were created between the first and second quarters of FY26. Hiring in industry and services has been supported by tax reforms, simplified regulations, and labour reforms by states. Gig work has also emerged as a major source of income, with the government working on an integrated data system to better map skills and demand.

In agriculture, the Survey projected a growth rate of 3.1 per cent in FY26. Foodgrain production touched a record 332 million tonnes in 2024–25, helping contain food inflation. The government’s focus has shifted towards securing farmers’ incomes and improving storage and logistics infrastructure. The Survey also noted India’s efforts to diversify exports amid global trade tensions.

On public finances, the Centre has met its fiscal consolidation targets ahead of schedule. The fiscal deficit stood at 4.8 per cent of GDP in FY25, with a target of 4.4 per cent for FY26. A lower deficit, the Survey said, supports macroeconomic stability and helps keep inflation in check.

India’s foreign exchange reserves rose from $668 billion in 2023–24 to $701 billion in 2024–25, strengthening the rupee and cushioning the economy against global shocks.

Despite uncertainty in global trade, India’s total exports of goods and services touched a record $825.3 billion in FY25. In April–December 2025, merchandise exports grew 2.4 per cent while services exports rose 6.5 per cent, even as the US imposed higher tariffs. The Survey said India has reduced its dependence on a single market by finalising a trade deal with the European Union and signing agreements with the UK, New Zealand and Oman over the past year.

The Economic Survey is prepared by the Economic Division of the Ministry of Finance under the guidance of Chief Economic Adviser Dr V Anantha Nageswaran. First presented in 1951, the Survey has been tabled separately from the Budget since 1964 and is traditionally placed in Parliament a day before the Union Budget.

The next stage of the economic roadmap will be outlined when the Union Budget 2026–27 is presented in Parliament.