Economic Survey 2025-26 Projects 7.4% GDP Growth, Higher Momentum Seen Ahead of Budget

Union Finance Minister Nirmala Sitharaman on Thursday tabled the Economic Survey 2025-26 in the Lok Sabha, projecting India's GDP growth at 7.4 per cent for the current financial year. The survey estimates that economic growth in 2026-27 could moderate slightly but remain strong, in the range of 6.8 to 7.2 per cent.

Prepared under the leadership of Chief Economic Adviser V Anantha Nageswaran, the survey analyses domestic and global economic conditions to outline India's growth outlook over the next two years. Officials from the Department of Economic Affairs examined a wide range of macroeconomic and social indicators while compiling the report.

As per convention, the Economic Survey was presented ahead of the Union Budget to provide Parliament with an assessment of the economy's performance and challenges. The document reviews sectoral trends, fiscal policy direction and external sector dynamics, offering a backdrop for the Budget debate.

The survey highlights stable macroeconomic fundamentals, noting that government-led reforms have helped strengthen the investment environment. It points to resilience in manufacturing, services and capital formation as key drivers supporting growth. The outlook presented is more optimistic than projections by several international agencies.

Key indicators covered in the survey include GDP growth trends, inflation movements, fiscal policy stance, export-import performance, foreign exchange reserves, and social sector parameters such as employment, health and education. The report also identifies areas where further policy intervention may be required to sustain growth momentum.

The projected 7.4 per cent growth for 2025-26 is higher than estimates in the previous Economic Survey, reflecting improved economic activity across sectors. The survey attributes this to a rebound in private investment and steady domestic demand.

For the next financial year, 2026-27, growth is expected to remain within the 6.8-7.2 per cent range, amid global uncertainties and evolving trade conditions.

The Budget Session of Parliament is currently underway, with discussions continuing in both Houses. Nirmala Sitharaman is scheduled to present the Union Budget on February 1, 2026. The Economic Survey will serve as a key reference document for framing fiscal priorities and expenditure plans in the upcoming Budget.