Published: 2 February 2026PIBEconomy
Economic Survey 2025-26: India's GDP Growth Estimated at 7.4% for FY26; Services Sector Leads at 9.1%
The Economic Survey 2025-26, tabled in Parliament on January 29, 2026 — two days before the budget — estimated India's real GDP growth at 7.4% for FY26 and projected 6.8-7.2% for FY27. India remains the fastest-growing major economy for the fourth consecutive year. The growth is driven by the 'double engine' of consumption and investment.
The services sector estimated 9.1% growth in FY26, up from 7.2% in FY25. Manufacturing grew 8.4% in H1 FY26. Agriculture grew at 3.1%, supported by a favourable monsoon, with five-year average at 4.4%. Retail inflation declined from 4.6% in FY25 to 1.7% in April-December FY26. Private consumption's GDP share rose to 61.5%. Gross NPA ratios fell to a multi-decade low of 2.2%.
Mains angle
Q: Critically examine the Economic Survey 2025-26's projections of 7.4% GDP growth and declining retail inflation. What do they reveal about India's macroeconomic trajectory?
Answer (50 words):
The Economic Survey 2025-26, tabled January 29, 2026, projected 7.4% real GDP growth for FY26 and 6.8-7.2% for FY27, with services at 9.1%, manufacturing 8.4%, agriculture 3.1%. Retail inflation fell from 4.6% to 1.7%, private consumption reached 61.5% of GDP, and gross NPAs hit 2.2%.
6-axis classification
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Frequently asked questions
What is India's GDP growth rate estimated in the Economic Survey 2025-26?
The **Economic Survey 2025-26** estimated India's real **GDP growth at 7.4% for FY26** and projected **6.8-7.2% for FY27**. India remains the **fastest-growing major economy for the fourth consecutive year**, driven by the 'double engine' of consumption and investment.
What is the growth rate of India's services sector according to Economic Survey 2025-26?
The **services sector** is estimated to grow at **9.1% in FY26**, up from **7.2% in FY25**, according to the Economic Survey 2025-26. Services continue to be the largest driver of India's economic growth and employment.
What happened to India's retail inflation according to the Economic Survey 2025-26?
**Retail inflation** declined sharply from **4.6% in FY25 to just 1.7%** in the April-December period of FY26, according to the Economic Survey 2025-26. This significant moderation in inflation reflects improved food supply and monetary policy effectiveness.
What is the Gross NPA ratio of Indian banks as per the Economic Survey 2025-26?
The **Gross NPA (Non-Performing Assets) ratio** of Indian banks fell to a **multi-decade low of 2.2%** as per the Economic Survey 2025-26. This reflects significant improvement in banking sector health and credit quality over the past several years.
When was the Economic Survey 2025-26 tabled in Parliament and what was the agriculture growth rate?
The **Economic Survey 2025-26** was tabled in **Parliament on January 29, 2026**, two days before the Union Budget. **Agriculture grew at 3.1%** in FY26, supported by a favourable monsoon, with a five-year average of **4.4%**.
