AI-generated image illustrating India’s economic growth outlook
New Delhi: Union Finance Minister Nirmala Sitharaman presented the Economic Survey 2025-26 in both the Lok Sabha and Rajya Sabha on Thursday. The survey shows that India’s economy is doing very well even when the world is facing many problems like fights between countries, changes in trade rules, money troubles and US tariffs. It projected 7.4 % GDP growth for the financial year 2025-26, making India the fastest-growing big economy in the world for the fourth consecutive year. The growth is expected to be between 6.8 and 7.2 % for the next financial year 2026-27. The country’s long-term growth power is seen at around 7 per cent.
Speaking after tabling the Economic Survey 2025-26, Finance Minister Nirmala Sitharaman said the Economic Survey 2025–26 highlights India’s resilience amid global uncertainty, noting that the economy has maintained strong momentum with an estimated 7.4% real GDP growth in FY26, reaffirming India’s position as the world’s fastest-growing major economy for the fourth year in a row.
The survey explains that this good performance comes from two main things.People are spending more money and businesses are increasing more. Household spending now makes up 61.5 per cent of the economy, the highest in many years. This is because prices are low, jobs are steady and people have more real money to spend. Rural areas are doing better because of good farm output and cities are improving with tax changes that make things cheaper. Business investments grew by 7.8 per cent and stayed at 30 per cent of the economy. Government spending on roads, railways, and other projects helped a lot.
Prices rose only by an average of 1.7 per cent from April to December 2025. This low rise in prices is thanks to better supply of food items and smart government steps. Banks are in much better shape now, with bad loans dropping to just 2.2 per cent – the lowest in many decades. India’s foreign money reserves reached $701.4 billion by mid-January 2026. This is enough to pay for 11 months of imports and covers almost all outside debts.
Chief Economic Advisor V. Anantha Nageswaran spoke to the media after the report was tabled. He said that before COVID, India’s average real growth was 6.4 per cent. Last year it was 6.5 per cent, and this year it is expected to be 7.4 per cent. “People’s spending grew by 7 per cent this year after 7.2 per cent last year. We are seeing this high growth in spending and investment even when price rises are very low just 1.7 per cent so far in the first nine months,”. He added that India’s long-term growth power has now reached 7 per cent because of good changes in manufacturing and other areas.
Prime Minister Narendra Modi shared his thoughts on X. He wrote: “The Economic Survey tabled today presents a comprehensive picture of India’s Reform Express, reflecting steady progress in a challenging global environment. It highlights strong macroeconomic fundamentals, sustained growth momentum and the expanding role of innovation, entrepreneurship and infrastructure in nation-building. The Survey underscores the importance of inclusive development, with focused attention on farmers, MSMEs, youth employment and social welfare. It also outlines the roadmap for strengthening manufacturing, enhancing productivity and accelerating our march towards becoming a Viksit Bharat. The insights offered will guide informed policymaking and reinforce confidence in India’s economic future.”
The survey talks about the world facing three possible situations in 2026 from managed problems to bigger breakdowns or even serious shocks like in 2008. But India is in a better position because of its big home market, strong reserves, and ability to stand on its own. Still, there could be problems with money coming in from outside and changes in the rupee value. The report says India must work hard on both long-term goals and quick actions like running a long race and a short race at the same time.
In farming, growth is expected at 3.1 per cent this year. Foodgrain production reached a record 3577.3 lakh metric tonnes last crop year, up by over 25 million tonnes. The government has given more than Rs 4.09 lakh crore to farmers under PM-KISAN. A new plan called Viksit Bharat-GramG will update rural job schemes to match the goal of a developed India by 2047.
The making of goods sector is showing good strength. Manufacturing grew by 8.4 per cent in the first half of the year. Special incentive schemes for 14 sectors brought in over Rs 2 lakh crore of investment, created extra production worth Rs 18.7 lakh crore, and gave 12.6 lakh new jobs by September 2025. The chip-making mission has 10 projects worth Rs 1.6 lakh crore.
Services are still the biggest driver, growing by 9.3 per cent in the first half. Exports of goods and services touched a new high of $825.3 billion last year. India also signed a free trade agreement with the European Union after three years of talks. The survey suggests a careful “disciplined Swadeshi” plan to build strength in key areas, cut costs, and make India important in the world.
Compared to the previous Economic Survey of 2023-24, this one shows steady progress in tougher times. Earlier, growth was 8.2 per cent in 2023-24 after the health crisis, with higher price rises of 5.4 per cent and bad loans at 2.8 per cent. Now prices are much lower, banks are healthier, and exports are at record levels. The old report focused on coming back strong; this one talks more about staying strong and becoming self-reliant in a changing world.
Big achievements include roads growing ten times faster since 2014, more airports, India ranking third in renewable energy and solar power, and becoming the fourth country to dock satellites on its own. Socially, over 31 crore informal workers are now registered (half of them women), poverty has come down a lot, and education and health have improved fast.
Defence Minister Rajnath Singh said that the survey underlines India’s strong macroeconomic fundamentals, adding that a stable domestic economy, controlled inflation and improved private investment have strengthened growth prospects and placed the country on a path of steady expansion despite global uncertainty.
The survey is hopeful that the government can change for the better by reducing old-style rules and becoming more helpful. It calls for everyone including government, businesses, and people to work together, innovate, and stay focused on the long goal of a developed India by 2047.
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