FM Sitharaman Presents Economic Survey; Projects GDP Growth at 6.3-6.8% for FY26

New Delhi: Finance Minister Nirmala Sitharaman tabled the Economic Survey 2024-25 in Parliament on Wednesday, offering a comprehensive assessment of the country’s economic performance and future outlook. The survey projects India’s Gross Domestic Product (GDP) growth for the financial year 2025-26 in the range of 6.3% to 6.8%, highlighting resilience amid global uncertainties.

Key Highlights of the Economic Survey

The Economic Survey, traditionally released a day before the Union Budget, outlines India’s macroeconomic position and key policy recommendations. This year’s survey acknowledges the economy’s stable growth despite external challenges, such as geopolitical tensions and volatile global markets.

According to the report, India’s economy remains robust due to strong domestic demand, government-led infrastructure spending, and the continued expansion of manufacturing and services sectors. The survey also attributes the projected growth to improved private investment, a resilient banking sector, and sustained consumer confidence.

Resilience Amid Global Headwinds

The Economic Survey emphasizes that while global growth is expected to slow down due to inflationary pressures and monetary tightening by major central banks, India has managed to maintain steady economic momentum. The country’s fiscal policies, coupled with structural reforms, have strengthened its ability to navigate external risks.

Moreover, the survey underscores the importance of the government’s emphasis on capital expenditure, which has played a crucial role in sustaining economic expansion. Sectors such as digital infrastructure, green energy, and manufacturing under the Production-Linked Incentive (PLI) schemes have been highlighted as key contributors to growth.

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Inflation and Fiscal Consolidation

The survey notes that inflationary pressures have moderated compared to the previous year, owing to policy measures and easing supply chain disruptions. However, global commodity price fluctuations and food inflation remain areas of concern. The Reserve Bank of India’s monetary policy stance is expected to balance inflation control with growth momentum.

On the fiscal front, the government reiterates its commitment to fiscal consolidation while ensuring continued public investment in critical sectors. The survey suggests that prudent fiscal management and revenue augmentation measures will help maintain fiscal discipline without compromising development goals.

Way Forward

The Economic Survey remains optimistic about India’s long-term growth trajectory, citing structural reforms, digitalization, and infrastructure-led growth as pivotal drivers. It emphasizes the need for continued policy support, investment in human capital, and innovation-driven strategies to sustain economic expansion.

As the nation awaits the Union Budget 2024-25, the Economic Survey provides crucial insights into the government’s economic roadmap, setting the tone for future policy decisions.