Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025-26 in Parliament on January 29, 2026, ahead of the Union Budget. The First Advance Estimates place real GDP growth for FY26 at 7.4% and GVA growth at 7.3%, affirming India's position as the fastest-growing major economy for the fourth consecutive year. Private Final Consumption Expenditure grew by 7.0% in FY26, reaching 61.5% of GDP — the highest since 2012. Gross Fixed Capital Formation grew by 7.8% and its share in GDP remained steady at 30%. Inflation averaged just 1.7% during April–December 2025, and India's foreign exchange reserves rose to USD 701.4 billion as of January 16, 2026. The Survey projects real GDP growth for FY27 at 6.8–7.2%, driven by continued domestic consumption and investment. India improved its Global Innovation Index ranking from 66th (2019) to 38th (2025), and the PLI Scheme generated over ₹18.70 lakh crore in production while creating 12.60 lakh jobs. Capital expenditure surged nearly 4.2 times from ₹2.63 lakh crore in FY18 to ₹11.21 lakh crore in FY26. Agricultural credit disbursement crossed ₹28.69 lakh crore in FY25. The Survey underlines that India's macroeconomic fundamentals remain resilient amid global headwinds.
Economic Survey 2025-26: India's Real GDP Growth Estimated at 7.4% for FY26, FY27 Projection at 6.8–7.2%
Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025-26 in Parliament on January 29, 2026, ahead of the Union Budget. The First Advance Estimates place real GDP growth for FY26 at 7.4% and GVA growth at 7.3%, affirming India's position as the fastest-growing major economy for the fourth consecutive year. Private Final Consumption Expenditure grew by 7.0% in FY26, reaching 61.5% of GDP — the highest since 2012. Gross Fixed Capital Formation grew by 7.8% and its share in GDP remained steady at 30%. Inflation averaged just 1.7% during April–December 2025, and India's foreign exchange reserves rose to USD 701.4 billion as of January 16, 2026. The Survey projects real GDP growth for FY27 at 6.8–7.2%, driven by continued domestic consumption and investment. India improved its Global Innovation Index ranking from 66th (2019) to 38th (2025), and the PLI Scheme generated over ₹18.70 lakh crore in production while creating 12.60 lakh jobs. Capital expenditure surged nearly 4.2 times from ₹2.63 lakh crore in FY18 to ₹11.21 lakh crore in FY26. Agricultural credit disbursement crossed ₹28.69 lakh crore in FY25. The Survey underlines that India's macroeconomic fundamentals remain resilient amid global headwinds.
Key facts
- Economic Survey 2025-26 places India's real GDP growth at 7.4% for FY26 and GVA at 7.3%.
- India is the fastest-growing major economy for the fourth consecutive year.
- Private Final Consumption at 61.5% of GDP is the highest since 2012.
- Foreign exchange reserves reached USD 701.4 billion as of January 16, 2026.
- PLI Scheme generated over ₹18.70 lakh crore in production and 12.60 lakh jobs.
- Capital expenditure surged 4.2 times from ₹2.63 lakh crore in FY18 to ₹11.21 lakh crore in FY26.
Mains angle
Q: Critically analyse the key macroeconomic projections and growth drivers highlighted in the Economic Survey 2025-26 and assess India's resilience amid global headwinds.
Answer (50 words):
Tabled on January 29, 2026, the Economic Survey projects FY26 real GDP growth at 7.4% and FY27 at 6.8–7.2%. Inflation averaged 1.7% during April–December 2025, forex reserves touched USD 701.4 billion, the PLI Scheme generated ₹18.70 lakh crore production and 12.60 lakh jobs, while capital expenditure reached ₹11.21 lakh crore.
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Per the Economic Survey 2025-26, what is India's estimated real GDP growth for FY26?
The Economic Survey 2025-26 places real GDP growth for FY26 at 7.4% with GVA growth at 7.3%, making India the fastest-growing major economy for the fourth consecutive year.
Source: PIB India
Frequently asked questions
Who presents the Economic Survey and when was the Economic Survey 2025-26 tabled in Parliament?
The Economic Survey is prepared by the Chief Economic Adviser (CEA) under the Finance Ministry and tabled in Parliament by the Finance Minister a day before the Union Budget. The Economic Survey 2025-26 was tabled by Finance Minister Nirmala Sitharaman on January 29, 2026, ahead of the Union Budget 2026-27.
What does the Economic Survey 2025-26 estimate for India's real GDP growth in FY26, and what is the FY27 projection?
The Economic Survey 2025-26 places India's real GDP growth for FY26 at 7.4%, with GVA growth at 7.3%. For FY27, the survey projects a growth range of 6.8–7.2%. These figures affirm India's position as the fastest-growing major economy for the fourth consecutive year.
What does Private Final Consumption Expenditure (PFCE) at 61.5% of GDP signify for FY26?
Private Final Consumption Expenditure reaching 61.5% of GDP in FY26 is the highest since 2012 and grew by 7.0% in FY26. This signals that domestic consumer demand is a robust engine of India's growth, reflecting rising incomes, a growing middle class, and increased rural spending — all key drivers of sustained economic expansion.
What has the Production Linked Incentive (PLI) Scheme achieved according to the Economic Survey 2025-26?
According to the Economic Survey 2025-26, the PLI Scheme has generated over ₹18.70 lakh crore in production value and created 12.60 lakh jobs across 14 key sectors including mobile manufacturing, pharmaceuticals, food processing, specialty steel, and solar PV modules. It has been a cornerstone of the government's 'Make in India' and Atmanirbhar Bharat strategy.
How has India's capital expenditure changed between FY18 and FY26, and why is this significant?
India's capital expenditure surged 4.2 times — from ₹2.63 lakh crore in FY18 to ₹11.21 lakh crore in FY26. This sharp rise in government capex on infrastructure (roads, railways, ports, digital infrastructure) is significant because it crowds in private investment, creates employment, enhances productive capacity, and supports long-term potential GDP growth — a key pillar of India's economic strategy.
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