Published: 30 January 2026PIB / Ministry of FinanceEconomy
Economic Survey 2025-26: India's GDP Grows 7.4% in FY26, FY27 Projected at 6.8-7.2%
The Economic Survey 2025-26, tabled by Finance Minister Nirmala Sitharaman on January 29, 2026, estimated India's real GDP growth at 7.4% for FY26, with GVA growth at 7.3%. This marks India's fourth consecutive year as the fastest-growing major economy in the world. For FY27, the Survey projects real GDP growth in the range of 6.8% to 7.2%, with medium-term potential growth estimated at around 7%.
The growth in FY26 is primarily driven by strong domestic demand. Private Final Consumption Expenditure (PFCE) grew 7.0%, reaching 61.5% of GDP — the highest since 2012; FY23 also recorded a 61.5% share. Gross Fixed Capital Formation (GFCF) registered 7.8% growth, maintaining a 30% share of GDP. The Survey was prepared under the guidance of Chief Economic Adviser V. Anantha Nageswaran.
The Survey emphasizes that India's reform momentum over the past decade has enhanced its resilience to global economic disruptions, with a strategic focus on building 'strategic indispensability' in global value chains. India received three sovereign credit rating upgrades in 2025 — from Morningstar DBRS, S&P Global, and R&I Inc. — reflecting improved macroeconomic fundamentals.
0Mains angle
Q: Analyse the key macroeconomic findings of Economic Survey 2025-26 regarding India's growth trajectory and external validation, examining factors underpinning India's sustained economic resilience.
Answer (50 words):
Economic Survey 2025-26, tabled by Finance Minister Nirmala Sitharaman on 29 January 2026, estimated FY26 real GDP growth at 7.4 percent, cementing India's fourth consecutive year as fastest-growing major economy. Private Final Consumption Expenditure reached 61.5 percent of GDP, the highest since 2012; FY23 also recorded 61.5 percent. Three sovereign rating upgrades validated macroeconomic fundamentals.
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
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PM Modi became the first world leader to receive which Ethiopian award?
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Frequently asked questions
What is India's GDP growth rate in FY26 according to Economic Survey 2025-26?
The **Economic Survey 2025-26**, tabled by Finance Minister **Nirmala Sitharaman** on **January 29, 2026**, estimated India's **real GDP growth at 7.4% for FY26** with GVA growth at **7.3%**. This marks India's **fourth consecutive year** as the fastest-growing major economy in the world.
What is India's GDP growth projection for FY27 per Economic Survey 2025-26?
The **Economic Survey 2025-26** projects India's real GDP growth in the range of **6.8% to 7.2% for FY27**, with medium-term potential growth estimated at around **7%**. India received **three sovereign credit rating upgrades in 2025** from **Morningstar DBRS, S&P Global, and R&I Inc.**
What drove India's GDP growth to 7.4% in FY26?
India's **7.4% GDP growth in FY26** was primarily driven by **strong domestic demand**: **Private Final Consumption Expenditure (PFCE) grew 7.0%**, reaching **61.5% of GDP** — the highest share since 2011-12. **Gross Fixed Capital Formation (GFCF) grew 7.8%**, maintaining a **30% share of GDP**.
How many consecutive years has India been the fastest-growing major economy?
India has been the **fastest-growing major economy for four consecutive years** as of FY26, with GDP growth of **7.4%**. The Economic Survey was prepared under the guidance of **Chief Economic Adviser V. Anantha Nageswaran** and was tabled in Parliament on **January 29, 2026**, ahead of the Union Budget.
Which sovereign credit rating agencies upgraded India in 2025?
India received **three sovereign credit rating upgrades in 2025**: from **Morningstar DBRS** (which upgraded India's credit outlook), **S&P Global** (revised India's outlook upward), and **R&I Inc.** (Japanese rating agency). These upgrades reflect India's improved fiscal management, declining public debt trajectory, and robust growth momentum.
