India’s GDP Growth For FY26 Projected At 6.3-6.8%: Economic Survey

India's GDP growth for the financial year 2025-26 (FY26) is expected to be between 6.3% and 6.8%, according to the Economic Survey 2024-25.

The report suggests that while the economy remains on solid footing, growth could be moderate in the coming year.

"The fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation, and stable private consumption. On balance of these considerations, we expect that the growth in FY26 would be between 6.3 and 6.8 per cent," stated the survey released by the government.

Manufacturing Sector Faces Pressure

The survey noted that the manufacturing sector has been under stress, primarily due to weak global demand and seasonal domestic factors.

"Private consumption remained stable, reflecting steady domestic demand. Fiscal discipline and strong external balance supported by a services trade surplus and healthy remittance growth contributed to macroeconomic stability. Together, these factors provided a solid foundation for sustained growth amid external uncertainties," the survey highlighted.

Food Inflation Likely to Ease

Addressing inflation concerns, the Economic Survey stated that food inflation, which has been a challenge in recent months, is expected to soften in the last quarter of FY25.

This will be aided by a seasonal decline in vegetable prices and the arrival of the kharif harvest. Additionally, a strong rabi crop in the first half of FY26 is anticipated to keep food prices stable, offering relief to consumers.

Investment Activity Expected to Rebound

While the survey acknowledged a slowdown in investment activity, it described this decline as temporary. It pointed out that policy support and improving business sentiment could help revive investments.

The report further emphasized that domestic investment, output growth, and disinflation trends could gain positive momentum in FY26, fostering a healthier economic environment.

Strong Economic Fundamentals to Support Growth

Reaffirming the strength of India's economic fundamentals, the survey highlighted a stable financial system, infrastructure improvements, and government policies aimed at sustaining growth.

With macroeconomic stability in place, the survey expressed confidence that India's economy would continue expanding, driven by steady private consumption, controlled inflation, and renewed investment momentum.