New Delhi: The Indian economy is projected to expand at a rate of 6.3 percent to 6.8 percent in the financial year 2025-26 (FY26), according to the Economic Survey 2024-25 presented in Parliament by Finance Minister Nirmala Sitharaman today.
The survey, released ahead of the Union Budget, cites strong domestic economic fundamentals, a declining unemployment rate, stable inflation, and the need for further reforms to sustain growth momentum.
“The fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation, and stable private consumption. On the balance of these considerations, we expect that the growth in FY26 would be between 6.3 and 6.8 percent,” the Economic Survey reads.
Sitharaman will present the Union Budget 2025-26 on Saturday.
Here are the highlights from the Economic Survey:
Fundamentals of the Indian economy remain robust with strong external accounts and stable private consumption.
Food inflation is likely to soften in Q4 FY25 with the seasonal easing of vegetable prices, and Kharif harvest arrivals.
India’s economic prospects for FY26 are balanced. Headwinds to growth include elevated geopolitical, and trade uncertainties.
Navigating global headwinds will require strategic, prudent policy management and reinforcing domestic fundamentals.
India needs to improve global competitiveness through grassroots-level structural reforms, and de-regulations, says Survey.
The Survey says India needs to improve its global competitiveness through grassroots-level structural reforms, and deregulation.
Inflation risk from higher commodity prices seems limited in FY26, geopolitical tensions still pose a risk.
The lack of an appropriate governance framework for AI may lead to potential abuse or misuse of technology.
Economic Survey says insolvency law’s deterrent effect has led thousands of debtors to resolve distress in the early stages.
Entry costs, information asymmetry, absence of a secondary market must be addressed to boost liquidity in the corporate bond market.
Rupee depreciation in 2024 mainly due to the strong US dollar amid geopolitical tensions, and uncertainty around the US election.