Economic Survey 2025-26: Growth Rate Projected at 7.2% for FY27; Maintains Cautious Tone

The Economic Survey projects India’s growth to range between 6.8% and 7.2% for the 2026–27 financial year, while maintaining a cautious tone amid an evolving global landscape. The Survey was tabled in Parliament today by Union Finance Minister Nirmala Sitharaman. Chief Economic Advisor V Anantha Nageswaran is expected to address the media shortly to detail the report’s assessment of India’s fiscal health.

“The cumulative impact of policy reforms over recent years appears to have lifted the economy’s medium-term growth potential closer to 7%,” the Survey said. “With domestic drivers playing a dominant role and macroeconomic stability well anchored, the balance of risks around growth remains broadly even. The outlook, therefore, is one of steady growth amid global uncertainty, requiring caution but not pessimism.”

For the financial year ending March 31, the Indian economy is estimated to have grown 7.4%, according to the First Advance Estimates released by the National Statistical Office. The Reserve Bank of India, in its latest projections, has revised its FY26 growth estimate upward to 7.3%.

Driven by strong domestic demand, a rising share of private final consumption in GDP, and resilient growth in the first half of FY26, the economy continues to show momentum in the current financial year, the Survey said. “This is the fastest growth rate since the first half of FY23 and remains higher than the pre-COVID trend of 6.9%,” it noted. The Survey also cited a supportive macroeconomic environment—including benign inflation, a stable labour market, and rising purchasing power—as key factors underpinning domestic economic resilience.

 Historically, India has often recorded higher-than-projected growth compared with the estimates outlined in the Economic Survey.

(This is a developing story)