New Delhi: The Economic Survey 2025-26, presented in Parliament on Thursday by Finance Minister Nirmala Sitharaman, projects India’s GDP growth rate to reach 7.0 percent in the financial year 2027. This is an upward revision from the 6.5 percent forecast made three years ago.
The survey highlights that despite global challenges, India’s economy has strengthened due to ongoing domestic reforms and increased government investment. The enhanced internal resilience is evident across multiple sectors.
Over the past decade, the number of airports in the country has doubled, and freight transportation via inland waterways has accelerated significantly. These improvements have eased logistics challenges and enhanced overall economic efficiency, as noted in the presentation to the Lok Sabha.
While fluctuations in food prices have caused some variation in inflation, core inflation excluding gold and silver has remained under control. This indicates strengthening supply chains, rising production capacity, and better transportation infrastructure nationwide.
Efforts to simplify regulations at the state level have facilitated the growth of small and medium enterprises. These businesses are becoming more integrated with the formal economy, which is expected to boost India’s growth potential in the coming years.
The survey credits the central government’s balanced fiscal policies in recent years for maintaining economic stability. It underscores the importance of setting clear fiscal targets while allowing policy flexibility to support growth during uncertain times.
Specifically, the central government’s strategy to reduce the fiscal deficit to below 4.5 percent of GDP by 2025-26 has been pursued through medium-term planning rather than rigid annual targets. This approach ensures that capital expenditure and other development-related spending are not compromised.
Amid ongoing geopolitical shifts that may impact investment, supply chains, and growth, the survey stresses the need for India to focus on strengthening its foundations, fostering continuous innovation, and steadfastly pursuing the goal of a developed India.
Chief Economic Adviser V. Anantha Nageswaran remarked that the data presented in the survey indicates that India is moving in the right direction with its decision-making.
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