Economic Survey 2026 Highlights: Growth steady, inflation anchored, external risks persist

Jan 29, 2026

Synopsis
Economic Survey Budget 2026 Highlights: Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025-26 in the Parliament today. The document provides the government's view on India's economy and its future direction. It will cover growth, stability, and reform priorities.

Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025–26 in the Lok Sabha on Thursday, a day after the Budget Session of Parliament began. Prepared by the Economic Division of the Department of Economic Affairs under the supervision of Chief Economic Adviser V Anantha Nageswaran, the Survey offers the government’s official assessment of the state of the economy and an outlook for the coming fiscal year.

As in previous years, the Survey focuses on growth drivers, fiscal and external sector stability, inflation trends, employment, and the pace of structural reforms.

Key takeaways from Economic Survey 2025-26

➤ India’s growth momentum remains strong, with full-year real GDP growth expected in the range of 6.8 to 7.2% in 2026-27, a tad lower than 7.4% estimated in the current fiscal.

➤ Inflation is contained and anchored, with subdued core inflation indicating improving supply-side conditions.

➤ The Survey flags a paradox: strong domestic fundamentals but persistent external vulnerability, especially via capital flows and currency pressures.

➤ Fiscal consolidation continues: FY25 deficit came in at 4.8% of GDP, better than budgeted, with a 4.4% target for FY26.

➤ Concern raised over state-level fiscal populism, rising revenue deficits, and unconditional cash transfers crowding out capital expenditure.

➤ Weak state finances increasingly affect sovereign borrowing costs, as investors assess general government finances, not just the Centre.

➤ Rupee a casualty of foreign capital flows drying up; Indian currency underperformed in 2025.

➤ India’s share of global merchandise exports nearly doubles from 1% to 1.8% between 2005 and 2024.

➤ India’s capital spending has risen more than fourfold from Rs 2.63 lakh crore in FY18 to Rs 11.21 lakh crore in FY26 (Budget Estimates). With effective capital expenditure pegged at Rs 15.48 lakh crore in FY26, infrastructure has emerged as a key driver of growth.

➤ India’s innovation performance has strengthened steadily, with its Global Innovation Index rank improving to 38th in 2025 from 66th in 2019.

➤ Centre's total revenue income was equal to 9.2% of India’s GDP.

➤ 55.02 crore bank accounts opened as of March 2025 under PMJan Dhan Yojana, with 36.63 crore in rural and semi-urban areas.

➤ India’s Foreign Exchange reserves increase to $701.4 billion as of January 16, 2026, providing cover for 11 months. imports and 94% of external debt.

➤ India’s foodgrain production is estimated to have reached 3577.3 lakh metric tonnes (LMT) in agriculture year (AY) 2024-25, an increase of 254.3 LMT over the previous year.

➤ First advance estimate projects real GDP growth and GVA growth for FY26 to 7.4% and 7.3% respectively.

➤ India remains the world’s largest recipient of remittances, with inflows reaching $135.4 billion in FY25.

➤ Domestic inflation averaged 1.7% for April-December 2025.

➤ Production Linked Incentive (PLI) schemes across 14 sectors have attracted over Rs 2.0 Lakh Crore of actual investment, generating incremental production/Sales Exceeding Rs 18.7 Lakh Crore and over 12.6 lakh jobs as of September 2025.

➤ India Semiconductor Mission has advanced domestic capabilities, with 10 projects of about Rs 1.60 lakh crore of investment.

➤ High-speed corridors increase nearly ten-fold-from 550 km (FY14) to 5,364 km (FY26, up to December 2025); 3,500 km of railway added in FY 26.

➤ India is the world's 3rd largest domestic aviation market, with the number of airports increasing from 74 in 2014 to 164 in 2025.

➤ Historic turnaround for discoms, recording a positive pat of Rs 2,701 crore in FY25 for the first time.

➤ India ranks 3rd globally in overall renewable energy and installed solar capacity.

➤ India becomes the 4th nation to achieve autonomous satellite docking (Spadex) capability.

➤ Gross Enrolment Ratio (GER) stands at 90.9, 90.3 and 78.7 at the primary, upper and secondary stages.

➤ India has now 23 IITs, 21 IIMs and 20 AIIMS, alongside the establishment of two international IIT campuses in Zanzibar and Abu Dhabi.

➤ India accelerated maternal and child mortality reduction since 1990, outpacing global averages.

➤ As of January 2026, the E-Shram Portal has successfully registered over 31 crore uorganised workers, 54% being women.

➤ Vacancies mobilised in the National Career Service Portal exceeded 2.8 crore in FY25 and have already crossed 2.3 crore by September FY26.

➤ NITI Aayog’s Multidimensional Poverty Index shows that poverty has fallen sharply from 55.3% in 2005-06 to 11.28% in 2022–23.

[The Economic Times]