Published: 28 January 2026PIB / Ministry of FinanceEconomy
Economic Survey 2025-26 Tabled: India's GDP Growth at 7.4%, Inflation Falls to 1.7%
On January 29, 2026, Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025-26 in Parliament, one day before the Union Budget. The Survey estimates India's real GDP growth for 2025-26 at 7.4% — up from 6.5% in 2024-25 — driven by a double engine of consumption and investment. Private Final Consumption Expenditure rose to 61.5% of GDP, the highest since 2011-12, signalling a robust domestic demand recovery.
Retail inflation declined sharply from 4.6% in 2024-25 to just 1.7% during April–December 2025-26, reflecting easing food prices and supply-side interventions. India's Current Account Deficit (CAD) narrowed to 0.8% of GDP in the first half of 2025-26, compared to 1.3% a year earlier. Real GDP growth for 2026-27 is projected between 6.8% and 7.2%.
The Survey highlights India's macroeconomic resilience amid global uncertainties, with strong capital expenditure, improvement in manufacturing PMI, and robust GST collections. It identifies deregulation, skill development, and digital public infrastructure as priority levers for sustaining high growth.
Mains angle
Q: Analyse the key macroeconomic indicators projected in the Economic Survey 2025-26 tabled by Finance Minister Nirmala Sitharaman, highlighting the drivers of GDP growth, inflation trajectory and current account deficit.
Answer (50 words):
Finance Minister Nirmala Sitharaman tabled Economic Survey 2025-26 on January 29, 2026, projecting real GDP growth at 7.4%, up from 6.5% in 2024-25. Private Final Consumption Expenditure reached 61.5% of GDP, highest since 2011-12. Retail inflation fell sharply to 1.7% from 4.6%, while Current Account Deficit narrowed to 0.8% of GDP.
6-axis classification
CoverageNationalSubjectEconomicExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · BothSourcePIB / Ministry of Finance
Practice MCQ from this story
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Linked questionMedium
As per the Economic Survey 2025-26, retail inflation in India declined from 4.6% in 2024-25 to approximately what level during April–December 2025-26?
Explanation · Correct answer AThe Economic Survey 2025-26 reports that retail inflation declined sharply from 4.6% in 2024-25 to just 1.7% during April–December 2025-26, reflecting easing food prices and supply-side interventions. Current Account Deficit also narrowed to 0.8% of GDP.
Frequently asked questions
What GDP growth rate did the Economic Survey 2025-26 project for FY26?
The Economic Survey 2025-26, tabled on January 29, 2026, projected India's GDP growth at 7.4% for FY26, maintaining India's status as the fastest-growing major economy for the fourth consecutive year.
What was India's retail inflation during April–December 2025 as per the Economic Survey?
Retail inflation fell to a low of 1.7% during April–December 2025, reflecting eased food and commodity prices, well below the RBI's 4% target.
What was India's Current Account Deficit (CAD) as a percentage of GDP in FY26?
India's Current Account Deficit stood at just 0.8% of GDP in FY26, indicating strong external sector fundamentals and a manageable trade balance.
How did private consumption perform in FY26 and why is it significant?
Private consumption expenditure grew 7.0% and reached 61.5% of GDP — the highest share since 2012. This signals a robust demand-driven recovery in the Indian economy.
What GDP growth is projected for FY27 according to the Economic Survey 2025-26?
FY27 GDP growth is projected at 6.8–7.2%, driven by continued consumption growth and investment, maintaining India's position as a top-performing major economy.
