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India Economic Survey 2025-26: 7.4% Growth, Record Exports, Low Inflation and the Road to Viksit Bharat
Summary: The Economic Survey 2025-26 confirms India’s position as the world’s fastest-growing major economy. With 7.4% GDP growth, historic low inflation, record exports, massive infrastructure expansion, and rising employment, India is steadily moving towards becoming a developed and globally influential nation by 2047.
India’s Economy Defies Global Uncertainty
New Delhi, 29 January 2026: At a time when the global economy is facing wars, trade disruptions, rising debt, and financial instability, India has emerged as a rare bright spot.
According to the Economic Survey,tabled by Finace Minister,Mrs Nirmala Sitharaman in the Parliament,yesterday,
India recorded:
Fourth year as fastest-growing major economy
Strong domestic demand, stable governance, and focused reforms have helped India outperform most major economies.
India’s growth story is powered by its people and enterprises.
Consumption Boom
Supported by low inflation and rising incomes
Investment Revival
Large public spending encouraged private companies to expand capacity and create jobs.
India’s disciplined financial management has strengthened investor confidence.
Key Achievements:
Digital taxation systems have widened the tax base and reduced leakages.
India’s banking sector is now among the strongest in emerging markets.
Government schemes have brought millions into formal finance, boosting entrepreneurship.
India is no longer just a manufacturing base-it is a global services powerhouse.
Trade Highlights:
These indicators ensure stability even during global shocks.
For ordinary citizens, inflation control is the biggest relief.
Lower food and fuel prices increased household savings and spending power.
Rural India witnessed strong growth.
Digital platforms and MSP ensured fair prices for farmers.
- GDP Growth: 7.4%
- GVA Growth: 7.3%
Fourth year as fastest-growing major economy
Strong domestic demand, stable governance, and focused reforms have helped India outperform most major economies.
Consumption and Investment: The Growth Engines
India’s growth story is powered by its people and enterprises.
Consumption Boom
- Private Consumption: 61.5% of GDP
- Highest since 2012
Supported by low inflation and rising incomes
Investment Revival
- GFCF Growth: 7.8%
- Investment Share: 30% of GDP
Large public spending encouraged private companies to expand capacity and create jobs.
Fiscal Discipline Builds Global Trust
India’s disciplined financial management has strengthened investor confidence.
Key Achievements:
- 3 Credit Rating Upgrades (2025)
- Revenue Receipts: 9.2% of GDP
- Capital Expenditure: 4% of GDP
- Debt Reduced by 7.1%
Digital taxation systems have widened the tax base and reduced leakages.
Banking Sector: Healthiest in Decades
India’s banking sector is now among the strongest in emerging markets.
- GNPA: 2.2%
- Net NPA: 0.5%
- Credit Growth: 14.5%
Government schemes have brought millions into formal finance, boosting entrepreneurship.
External Sector: India’s Global Footprint Expands
India is no longer just a manufacturing base-it is a global services powerhouse.
Trade Highlights:
- Total Exports: $825.3B
- Services Exports: $387.6B
- Remittances: $135.4B
- Forex Reserves: $701.4B
These indicators ensure stability even during global shocks.
Inflation at Historic Lows
For ordinary citizens, inflation control is the biggest relief.
- CPI (Apr–Dec 2025): 1.7%
- Among lowest globally
Lower food and fuel prices increased household savings and spending power.
Agriculture: Backbone of Rural Prosperity
Rural India witnessed strong growth.
- Foodgrain: 3577 LMT
- Horticulture: 362 MT
- Livestock: +195%
Digital platforms and MSP ensured fair prices for farmers.
Manufacturing and Innovation Take Off
India’s industrial sector is undergoing structural transformation.
Highlights:
- Manufacturing Growth: Up to 9.13%
- PLI Investment: ₹2 Lakh Cr
- Semiconductor Projects: ₹1.6 Lakh Cr
- Innovation Rank: 38th
India is building future-ready industries.
Infrastructure: Building the New India
Public investment is reshaping the nation.
| Sector | Progress / Status |
|---|---|
| Highways | 1.46 Lakh Km |
| Airports | 164 |
| Rail Electrification | 99% |
| Power Capacity | 509 GW |
| Renewable Energy | 49.8% |
World-class infrastructure improves productivity and attracts investment.
Education, Health & Skills: Investing in People
Human capital remains India’s biggest strength.
Education
- 24.6 Cr Students
- 70,000+ HEIs
- Global IIT Campuses
Health
- MMR Down 86%
- IMR at 25
Employment
- 56.2 Cr Employed
- 31 Cr e-Shram Workers
Skilling programmes prepare youth for future jobs.
Climate Action & Green Leadership
India is balancing growth with sustainability.
- 38.6 GW Renewables Added
- Top 3 in Solar & Wind
Green energy is creating jobs and reducing carbon footprint.
AI & Digital Governance: India’s Tech Edge
India’s AI strategy focuses on affordable, practical, and inclusive solutions.
Applications in healthcare, agriculture, governance, and disaster management are improving public service delivery.
Urban Growth & Smart Mobility
Projects like Namo Bharat RRTS are improving regional connectivity and reducing congestion in metros.
From Swadeshi to Strategic Indispensability
India is shifting from basic self-reliance to becoming essential in global supply chains.
Focus areas:
- Critical Inputs
- Cost Reduction
- Global Integration
Goal: Make “Made in India” the world’s first choice.
Conclusion: A Confident March Towards 2047
The Economic Survey 2025-26 presents a story of:
- Resilience
- Reforms
- Results
- Responsibility
With strong fundamentals and people-centric policies, India is firmly on track to achieve Viksit Bharat 2047.
Frequently Asked Questions (FAQs) – Economic Survey 2025-26
Q1. What is the Economic Survey 2025-26?
The Economic Survey 2025-26 is an official annual report presented by the Government of India before the Union Budget. It reviews the country’s economic performance, challenges, and future outlook, and guides policy decisions.
Q2. Who presented the Economic Survey 2025-26?
The Economic Survey 2025-26 was tabled in Parliament by Union Finance Minister Smt. Nirmala Sitharaman in January 2026.
Q3. What is India’s GDP growth rate in FY26 according to the Survey?
According to the Survey, India’s real GDP growth in FY26 is estimated at 7.4%, making it the fastest-growing major economy in the world for the fourth consecutive year.
Q4. Why is the Economic Survey 2025-26 important?
The Survey is important because it provides a detailed analysis of:
- Economic growth
- Inflation trends
- Employment generation
- Fiscal health
- Infrastructure development
- Global trade position
It helps citizens, investors, businesses, and policymakers understand India’s economic direction.
Q5. What does the Survey say about inflation in India?
The Survey reports that India’s average inflation during April–December 2025 was 1.7%, the lowest since the CPI series began. This was mainly due to lower food and fuel prices.
Q6. How is India’s banking sector performing in FY26?
India’s banking sector is at its strongest in decades, with:
- Gross NPA at 2.2%
- Net NPA at 0.5%
- Credit growth of 14.5%
This reflects improved financial discipline and stronger loan recovery.
Q7. What are the major achievements in infrastructure?
Key infrastructure achievements include:
- 1.46 lakh km national highways
- 164 operational airports
- 99% railway electrification
- 509 GW power capacity
- 49.8% renewable energy share
These developments are boosting connectivity and economic activity.
Q8. How has agriculture performed in FY26?
Agriculture showed strong growth with:
- Record foodgrain production of 3577 LMT
- Horticulture output of 362 MT
- Major expansion in livestock and fisheries
- Digital platforms and MSP policies supported farmer incomes.
Q9. What does the Survey say about employment in India?
The Survey reports that:
- 56.2 crore people were employed in Q2 FY26
- Over 8.7 lakh jobs were added in one quarter
- e-Shram registered more than 31 crore workers
This indicates steady job creation across sectors.
Q10. How strong is India’s external sector in 2025-26?
India’s external sector remains stable with:
- Exports of USD 825.3 billion
- Remittances of USD 135.4 billion
- Forex reserves of USD 701.4 billion
- CAD at around 1.3% of GDP
These factors protect India from global shocks.
Q11. What is “Viksit Bharat 2047” mentioned in the Survey?
“Viksit Bharat 2047” is India’s vision to become a fully developed nation by the year 2047, marking 100 years of independence. The Survey aligns economic reforms and investments with this long-term goal.
Q12. What is India’s strategy for Artificial Intelligence (AI)?
The Survey highlights India’s focus on affordable, task-based AI models for healthcare, agriculture, education, governance, and disaster management, especially for low-resource environments.
Q13. How does the Economic Survey impact common citizens?
The Survey impacts citizens by influencing:
- Job creation
- Price stability
- Infrastructure quality
- Education and healthcare services
- Digital and financial inclusion
Better economic management improves overall living standards.
Q14. Where can I download the official Economic Survey 2025-26?
The official Economic Survey can be downloaded from the Ministry of Finance website and the Parliament of India portal after its release.
Q15. What is the main message of the Economic Survey 2025-26?
The main message is that India has built strong economic foundations through reforms, fiscal discipline, infrastructure investment, and digital governance, making it resilient and globally competitive.
Economic Survey 2025-26 India, India GDP Growth 2026, Indian Economy Report Budget
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