Context: The Economic Survey 2025–26 was tabled in Parliament by the Union Finance Minister ahead of the Union Budget 2026. The Survey introduces the core idea of “Disciplined Swadeshi”—a calibrated development strategy that rejects inward-looking protectionism while firmly integrating India into global supply chains with domestic strength and competitiveness.
About the Economic Survey
The Economic Survey of India is the Ministry of Finance’s annual flagship publication that reviews macroeconomic performance over the previous year and presents policy-oriented insights.
- Prepared by: Economic Division, Department of Economic Affairs (DEA) under the Chief Economic Advisor
- Presented since: 1950–51 (separately from the Budget since 1964)
- Legal Status: Non-statutory and non-binding
- Contents: Macroeconomic trends, sectoral performance, thematic chapters, and statistical annexures
Key Highlights of Economic Survey 2025–26
1. State of the Economy
India remains the fastest-growing major economy:
- Real GDP growth (FY26): 7.4%
- FY27 outlook: 6.8–7.2%
- Medium-term potential growth revised upward to 7%
Growth is increasingly consumption-driven:
- Private Final Consumption Expenditure (PFCE) rose to a 12-year high of 61.5% of GDP
- Rural demand improved due to strong agriculture, while urban demand was supported by stable employment
Investment momentum continued:
- Gross Fixed Capital Formation (GFCF) grew 7.6%, sustaining around 30% of GDP
2. Fiscal Developments
Fiscal consolidation progressed alongside growth:
- Fiscal deficit: 4.8% (FY25); 4.4% target for FY26
- Revenue receipts increased to 9.2% of GDP, reflecting higher tax buoyancy
- Direct tax base expanded to 9.2 crore ITR filers
- GST collections rose 6.7% YoY to ₹17.4 lakh crore (Apr–Dec 2025)
Quality of expenditure improved:
- Effective Capital Expenditure increased to 4.0% of GDP
- General Government debt-to-GDP declined by 7.1 percentage points since 2020
3. Monetary Management and Financial Inclusion
- RBI policy stance: Neutral
- Repo rate cut by 125 bps since Feb 2025 to 5.25%
- Banking health improved: GNPA at a multi-decadal low of 2.2%
Financial inclusion deepened:
- PM Jan Dhan Yojana: 55.02 crore accounts, majority in rural/semi-urban areas
- Capital market participation crossed 12 crore investors, with women ~25%
4. Inflation and Prices
- Retail inflation averaged a historic low of 1.7% (Apr–Dec 2025), driven by food deflation
- Core inflation remained elevated at 4.62%, largely due to global precious metal prices
- Lower food and fuel inflation boosted household purchasing power
5. Agriculture and Allied Sectors
- Agriculture growth (FY26): 3.1%
- Horticulture output (362.08 MT) exceeded foodgrains (357.7 MT) for the second year
- Fish production surged 142% in a decade, reaching 188.7 lakh tonnes
6. Industry and Infrastructure
- Industrial GVA growth projected at 6.2%, led by manufacturing
- Rail electrification reached 99.1% of broad-gauge routes
- India became the 3rd largest domestic aviation market, with 164 operational airports
- DISCOMs recorded a positive PAT of ₹2,701 crore for the first time
- High-speed highway corridors expanded to 5,364 km
7. Services Sector
- Share in GDP: 53.6% (H1 FY26)
- Growth (FY26): 9.1%
- Attracted over 80% of FDI inflows (FY23–FY25)
- Services exports reached $387.5 billion, ranking 7th globally
8. External Sector
- Forex reserves: $701.4 billion, covering 11 months of imports
- India’s share in global exports: 1.8% (merchandise) and 4.3% (services)
- Remittances: $135.4 billion (3.5% of GDP)
- External debt: $746 billion; sovereign external debt < 5% of total government debt
9. Social Infrastructure and Employment
- Unemployment rate declined to 4.9% (Q3 FY26)
- Female LFPR rose to 41.7%
- Multidimensional Poverty reduced to 11.28%
- Social sector spending increased to 7.9% of GDP
- e-Shram portal registered 31+ crore unorganised workers
Conclusion
The Economic Survey 2025–26 presents a confident picture of India’s economy—growth with stability, inclusion, and resilience—anchored in the philosophy of Disciplined Swadeshi, balancing domestic capability with global integration.