Economic Survey 2026: Here Are the Key Highlights

For the year ending March 31, India is projected to record economic growth of 7.4%, higher than the 6.3–6.8% range projected in last year’s pre-Budget Economic Survey. In most instances, India has outperformed the growth estimates outlined in the Survey.

Industry experts and market participants will closely track the data and policy prescriptions detailed in the document, which often set the narrative framework and forward-looking guidance for economic decision-making.

“This year’s Economic Survey comes at a time of unprecedented pressures on India’s economy and addresses key questions,” Chief Economic Adviser V. Anantha Nageswaran writes in Mint ahead of its presentation. He says the survey will answer questions such as: “Has India done enough to lift and sustain growth? How should we achieve greater indigenisation and export competitiveness? How do we structurally reduce the cost of capital?”

Kerala Finance Minister K N Balagopal presented the State Budget 2026 in the Assembly, announcing an array of welfare spending. The budget allocates ₹3,820 crore for the women’s security welfare pension and ₹14,500 crore for disbursing welfare pensions in 2026–27, while ₹400 crore has been set aside for the Chief Minister’s ‘Connect to Work’ scholarship scheme. It also provides for pay hikes, including a ₹1,000 increase for Anganwadi workers, pre-primary teachers, ASHA workers and literacy promoters, a ₹500 hike for Anganwadi helpers, and a ₹25 rise in daily wages for school mid-day meal workers.

Ahead of the Economic Survey 2025–26 presentation, the stock market opened with marginal losses. The BSE Sensex was down 0.56% at 81,877.97 at 10.20 am, while the Nifty 50 was trading 0.57% lower at 25,195.70.

"Nifty’s up move of 300 points during the last two days should be seen more as a temporary response in anticipation of the Budget to be presented on Sunday. Since the bears won’t risk going into the Budget with huge open short positions, they have covered some shorts and this has contributed to the 300 point rally in the Nifty.  It is important to note that there is no change in the short to medium-term strategy of FIIs, which is ‘sell India’ and move the money to other performing markets. Therefore, unless there is some big announcement in the Budget nudging FIIs to return to India, they will continue to sell in India thereby dragging the market down," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Adding that "Markets can always surprise. Some positive news/event can trigger a rally in the market. There are rumours of a sudden announcement of a US-India trade deal. If that happens close on the heels of the path breaking India-EU-trade deal, that would be a major boost to Indian economy and corporate earnings in FY27, and therefore, the market will respond positively."

Fiscal prudence, a volatile rupee, indigenisation of the manufacturing sector and rapid technological advancement anchor the Economic Survey 2025–26, Chief Economic Adviser V. Anantha Nageswaran wrote in his op-ed ahead of the presentation on Thursday.

“Since the beginning of 2025, the price of one dollar in Indian rupees has risen by more than 6%. Over this shorter horizon, several other emerging-market currencies have performed better. However, when the frame is widened to a six-year window beginning February 2020, most major emerging-market currencies, including the Indian rupee, have weakened against the dollar by a similar magnitude,” he wrote.

The Budget Session of Parliament began on Wednesday with the President’s Address. While no legislative business is scheduled in the Lok Sabha, the Rajya Sabha’s agenda includes the tabling of the Economic Survey for 2025–26.

Prime Minister Narendra Modi has arrived at Parliament ahead of the tabling of the Economic Survey for 2025–26. The survey will be tabled by Finance Minister Nirmala Sitharaman.

The Indian rupee slipped to an all-time low of ₹91.99 against the US dollar on January 29 early morning, weighed down by weak foreign capital inflows and increased corporate hedging. The currency is down about 2% so far this year and nearly 5% since the US imposed higher tariffs on Indian exports.

"President's address expression of confidence of 140 crore citizens; outlined aspirations of youth," said PM Narendra Modi ahead of the Economic Survey presentation

"To attain the goal of Viksit Bharat 2047, the important phase of these 25 years has begun. The first Budget of this second quarter of the century is about to be presented. Finance Minister Nirmala Sitharaman is the first FM of the country, the first woman FM of the country who is presenting the Budget in the Parliament for the 9th consecutive time. This is registered as a proud moment in the Parliamentary history of the country," said PM Narendra Modi.

"The Union budget should have sanctity. Whatever is announced in the Union budget should be implemented. Unfortunately, announcements made in the Union budget for Karnataka over the last two to three years have not come to fruition... It is unfortunate that the central government is mistreating Karnataka like this... They should fulfil the previous promises... We urge them to ensure that Bangalore gets the recognition it deserves... I hope the central government will present a good budget, but my hopes are not very high because I know the discrimination being meted out to non-BJP-ruled states is very clear," said Karnataka Minister Dinesh Gundu Rao.

"At the very beginning of this quarter, the India–European Union Free Trade Agreement reflects how bright the coming direction is and how promising the future of India's youth is. This is free trade for an ambitious India, for aspirational youth, and for a self-reliant India. I am confident that Indian manufacturers, in particular, will use this opportunity to enhance their capabilities," said PM Modi ahead of Budget session.

"It is natural for the attention of the country to be towards the Budget. But the identity of this Government has been reform, perform and transform. Now, we have swiftly taken off on 'Reform Express'. I express gratitude to all MPs for their positive contributions in speeding up this 'Reform Express'. As a result, 'Reform Express' is gaining speed," said PM Narendra Modi.

The Economic Survey typically sets the tone for the Union Budget and outlines the policy framework and economic outlook for the upcoming year. The Survey is prepared by the Office of the Chief Economic Advisor (CEA) under the Ministry of Finance. More often than not, the Indian economy has expanded at a pace higher than the projections outlined in the Economic Survey. Growth for FY26 is expected to be around 7.4%, in line with the First Advance Estimates released by the National Statistical Office.

Alongside growth, inflation and fiscal arithmetic are the other key components closely tracked by economists and market participants.

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"Even colleagues who have an attitude of disliking us, which is natural in democracy and everyone else says that this government has laid emphasis on last mile delivery. We make efforts to bring schemes not just to files but to lives," said PM Narendra Modi

The Economic Survey is published ahead of the budget. It takes stock of the economy at a crucial moment. The report outlines how the year has gone and flags the issues that will shape discussions in Parliament.

The Economic Survey will be tabled soon in Rajya Sabha by FM Nirmala Sitharaman. The full official Economic Survey 2026 document can be downloaded from indiabudget.gov.in/economicsurvey/index.php once the presentation of the survey is completed.

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"India's democracy and demography is a big hope to the world today. This is an opportunity to send across a message to the global community through this temple of democracy - of our capability, of our dedication to democracy, of honouring the decisions made through democratic processes. The world welcomes and accepts this. Today, the country is advancing. This is not the time for obstruction. This is the time for solution," said PM Narendra Modi

"Given the depth and breadth of topics to be covered, the Economic Survey this time is longer than usual. It is also organized differently from previous editions," CEA V Anantha Nageswaran wrote in his op-ed in Mint ahead of the presentation on Thursday.

The Economic Survey 2026 is divided into two sections. Part A highlights key macroeconomic developments during the fiscal year and provides a broad assessment of the Indian economy, while Part B focuses on specific socio-economic issues affecting the country.

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"The forthcoming FY27 Union Budget has to strike a deft balance of sustaining growth momentum and maintaining fiscal consolidation, even as it also needs to address near-term challenges emanating from unprecedented geopolitical flux," said Motilal Oswal Financial Services said in a note on Wednesday. The noted added that investors do not expect large substantive measures as the FM grapples to address multiple variables – thus setting the base lower for some positive surprise.

"The scope of influence of the budget has become relatively narrower over the years, owing to a flurry of extra-budgetary steps – hence, equity markets will be assessing it for targeted, selective measures to drive growth in certain sectors and to assuage investor sentiments," the brokerage added.

Nirmala Sitharaman will table the Economic Survey 2026 in Parliament today. The first advanced estimates project that India's economy will expand at 7.4% in FY26, compared with a 6.5% rise in FY25.

Finance Minister Nirmala Sitharaman has tabled the Economic Survey 2025-26 in the Lok Sabha.

Even as the global economy navigates uncertainty, India continues to chart a State of the Economy 99 strong growth path, as reflected in the First Advance Estimates (FAE) for FY26 released by the Ministry of Statistics and Programme Implementation (MoSPI), says Economic Survey 2026.

“With domestic drivers playing a dominant role and macroeconomic stability well anchored, the balance of risks around growth remains broadly even. Taking these considerations together, the Economic Survey projects real GDP growth in FY27 in the range of 6.8 to 7.2 per cent,” Economic Survey

"The FY26 was an unusually challenging year for the economy on the external front. Heightened uncertainty in global trade and the imposition of high, penal tariffs created stress for manufacturers, particularly exporters, and affected business confidence. The government responded by using this crisis as an opportunity to push through key measures such as GST rationalisation, faster progress on deregulation, and further simplification of compliance requirements across sectors. FY27 is therefore expected to be a year of adjustment, as firms and households adapt to these changes, with domestic demand and investment gaining strength. That said, it must be acknowledged that the external environment remains uncertain, which shapes the overall outlook," said the Survey

Economic Survey 2026 LIVE: Inflation Outlook Remains Benign, Supported by Favourable Supply Side Conditions, Says Eco Survey

"Domestic inflation dynamics in FY26 (April-December) reflect a broad-based easing in price pressures, led by a sharp disinflation in food prices. Headline CPI inflation declined to 1.7 per cent, driven primarily by corrections in vegetable and pulse prices, supported by favourable farm conditions, supply-side interventions, and a strong base effect. While core inflation has exhibited persistence, this has been largely influenced by price spikes in precious metals; adjusting for these, underlying inflation pressures appear materially softer, indicating limited demand-side overheating," said CEA in the Economic Survey 2026.

Looking ahead, he added that the inflation outlook remains benign, supported by favourable supply side conditions and the gradual pass-through of GST rate rationalisation.

"However, the trajectory of core inflation will need to be closely monitored in the context of monetary policy easing and potential upward pressures from global base metal prices," Nageswaran added.

"The RBI and IMF have projected a progressive increase in headline inflation in the upcoming fiscal, bringing the levels within the targeted range of 4 per cent (± 2 per cent). In December 2025, the RBI revised its inflation projections for FY26 from 2.6 per cent to 2.0 per cent, owing to a good kharif harvest and healthy rabi sowing. IMF has projected an inflation rate of 2.8 per cent in FY26 and 4.0 per cent in FY27. The RBI’s forecast for headline Inflation for Q1 and Q2 of FY27 currently stands at 3.9 and 4 per cent, " the Economic Survey said.

"Exports of telecom instruments witnessed a significant growth of 51.2 per cent (YoY) while those of drug formulations and biologicals experienced a growth of 11.2 per cent (YoY). These trends are a testament to the country’s increasing strength in electronic manufacturing and reaffirm its position as a global pharmaceutical hub. Among the other principal commodities, steady gains were observed in exports of electric machinery and equipment, ready-made garments made from cotton, and motor vehicles/cars," said the Economic Survey 2026.

"India’s telecom sector has undergone a significant transformation, driven by initiatives such as 5G deployment, 6G research, BharatNet, and Digital Bharat Nidhi, reflecting the Government’s vision of a digitally empowered nation. With innovations including indigenous 4G by BSNL, 100 5G Labs, and citizen-centric platforms, the sector is advancing toward self-reliance, enhanced security, and global leadership," said the Eco Survey 2026

"To sustain India’s renewable energy momentum, challenges such as high capital costs, land acquisition delays, and grid availability need to be addressed through appropriate instruments including innovative financing mechanisms and optimised project execution. Further, large-scale integration of Battery Energy Storage Systems (BESS) and Pumped Storage Hydropower (PSP) can address the inherent variability of renewables, ensure grid stability and peak-load management, and enable reliable, large-scale adoption of renewables to support the transition to a clean, secure, and resilient power system," said Economic Survey.

"Agriculture will be central to achieving Viksit Bharat, driving inclusive growth and improving the livelihoods of millions. India has made notable progress in increasing agricultural production, particularly in key sectors such as dairy, poultry, fisheries, and horticulture, which collectively contribute significantly to the country's GDP," said the Economic Survey 2026.

Adding that the strengthening of cooperatives and the rise of farmer-producer organisations (FPOs), have further expanded access to credit, innovative technology, and efficient value chains.

"These entities play a vital role in empowering small and marginal farmers by facilitating collective bargaining and ensuring fair prices for their produce. Additionally, the adoption of digital technologies, such as the Digital Agriculture Mission, and e-NAM which connects farmers with markets, is increasing transparency and competition," the key document ahead of Budget 2027.

"India’s inflation rate – headline and core excluding precious metals – will likely be higher in FY27 than in FY26. However, we believe it is unlikely to be a concern," said the Economic Survey 2026.

"A significant development in this regard is the recently concluded free trade agreement with the European Union after three years of negotiations, which will now require ratification by the European Parliament. In the current global context, the agreement expands market access for India’s labour-intensive manufactured exports while enabling deeper integration with Europe’s technological and manufacturing capabilities. The FTA with Europe can support the continent’s efforts to revitalise parts of its manufacturing base and, at the same time, strengthen India’s manufacturing competitiveness, export resilience and strategic capacity. Realising the potential of trade agreements requires that we can produce competitively," said the Economic Survey 2026.

“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.”

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"India’s electronics sector has undergone a structural transformation in recent years, ascending from the seventh-largest export category in FY22 to the third-largest and fastest-growing in FY25. This momentum continued into the first half of FY26, with electronics exports reaching USD 22.2 billion, positioning the sector on track to become the second-largest exported item," said the Eco Survey.

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"The AI Economic Council, separate from the Governance Council, is intended to operate, not just with a technological imperative, but with moral imperatives that are sensitive to India’s socio-economic realities. They will operate as a coordinating authority that is responsible for aligning technology deployment with the evolution of India’s education and skilling infrastructure, while navigating resource constraints and developmental priorities," said said the Eco Survey.

The Economic Survey 2026 concluded with the late Journalist Mark Tully, who passed away recently in New Delhi. “If India is to truly fulfill its potential, it must move from a ‘Ruler’s Raj’ to a ‘Citizen’s Raj’.” said Sir Mark Tully, 9th Nani Palkhivala Memorial Lecture, Chennai, February 12, 2011.

The Economic Survey 2026 noted that the reciprocal tariffs imposed by the US has "heightened uncertainty in global trade and "created stress for manufacturers, particularly exporters, and affected business confidence."

However, for India, these global conditions translate into external uncertainties rather than immediate macroeconomic stress, it added.

"Slower growth in key trading partners, tariff induced disruptions to trade and volatility in capital flows could intermittently weigh on exports and investor sentiment," the survey said.

Adding that ongoing trade negotiations with the United States are expected to conclude during the year, which could help reduce uncertainty on the external front. While these risks remain manageable, they reinforce the importance of maintaining adequate buffers and policy credibility.

"Platform algorithms control work allocation, performance monitoring, wages, and supply-demand matching, raising concerns about algorithmic biases and burnout," the Economic Survey 2026 said, noting that about 40% of gig workers report earnings below ₹15,000 per month.

"Limited skilling and fears of job losses due to technological advances such as artificial intelligence (AI) and machine learning (ML) add to worker vulnerability," it noted.

The key economic document by the CEA Nageswaran noted that online platforms have become essential gig-market infrastructure, but he also flaged "concentration of power raises concerns over fees, algorithms, and worker protections."

"Policy should address this through competition rules, data access, and algorithmic transparency, while reorganising the social contract so that gig work benefits workers more fairly. Policy can reduce the cost gap between regular and gig work by limiting incentives to avoid mandatory benefits and by setting minimum per-hour or per-task earnings (including waiting time), encouraging formal employment and raising incomes for low- and mediumskilled gig workers," the survey said.

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The Economic Survey 2026 raised concerns about growing digital addiction among youth and adult population in India. "The Online Gaming (Regulation) Act, 2025, represents a major step to address digital addiction and financial harm among youth," the document prepared by CEA.

It flagged by a major challenge in addressing digital addiction in India is "the lack of comprehensive national data on its prevalence and mental health effects."

"This hinders targeted intervention, resource allocation, and integration of digital wellness into national mental health strategies,' the survey added.

To addressee the problem, the CEA called on the governments and communities to establish "offline youth hubs, particularly in urban slums and rural areas."

"The rupee’s valuation does not accurately reflect India’s stellar economic fundamentals. In other words, the rupee, therefore, is punching below its weight. Of course, it does not hurt to have an undervalued rupee in these times, as it offsets to some extent the impact of higher American tariffs on Indian goods, and there is no threat of higher inflation from higher-priced crude oil imports now. However, it does cause investors to pause. Investor reluctance to commit to India warrants examination," said the Economic Survey 2026.

“The Economic Survey 2025-26 has indicated that while the nominal GDP, per Budget Estimates for FY26, is likely to be higher by ~51% from FY 2022, the corresponding gross direct tax revenue is likely to be higher by ~58%.  The increased tax collection is attributed to, amongst others, NUDGE approach of the Income-tax Department… NUDGE referring to Non-intrusive Usage of Data to Guide and Enable.  NUDGE identifies potential non-compliances and guides taxpayers with relevant information leading to voluntarily corrections/compliance by tax-payers, without resorting to audits or litigation.  This is a win-win for both – the income-tax department and the tax-payers,” said Dipesh Jain, Partner, Economic Laws Practice.

"The (real estate) sector entered a sustained upcycle from September 2021, post-COVID, as reflected in improved sales, driven by higher household savings channelled towards physical assets. The momentum has continued in recent quarters, supported by favourable affordability conditions and easing inflation," says Economic Survey.

Ahead of the Union Budget 2026, Finance Minister Nirmala Sitharaman on Thursday tabled the Economic Survey 2025–26 in Parliament, offering a detailed snapshot of India's economic performance and future outlook. Prepared by the Economic Division of the Department of Economic Affairs under the Ministry of Finance and led by Chief Economic Advisor Dr V Anantha Nageswaran, the Survey is being closely tracked for its sector-wise insights and policy signals.

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Financial markets are already pricing this fragility. Gold rose from $2607 to $4315 per ounce in 2025, reflecting a weakening US dollar, expectations of persistently negative real rates, and the market’s growing assessment of geopolitical and financial tail risks, noted the Economic Survey 2026

Global economic uncertainty remains elevated, driven by geopolitical fragmentation and reduced clarity on policy continuity, the Economic Survey 2026 noted on Thursday. This, along with broader macroeconomic challenges, has led to a deterioration in global foreign direct investment (FDI) flows, with UNCTAD data showing that global FDI declined 11% year-on-year in 2024, excluding certain conduit economies.

The Survey highlighted that capital flows are increasingly being shaped by surging demand along the artificial intelligence supply chain, benefiting a limited number of countries. While FDI fell across most developed economies, inflows into the US rose by 19.7%, reflecting strong investment in strategic sectors.

Gross foreign direct investment (FDI) inflows under the capital account rose sharply, increasing 16.1% year-on-year during April–November 2025, the Economic Survey 2025–26 noted.

However, net FDI growth remained capped as outward FDI by Indian companies jumped 34.9% over the same period, even as repatriation flows declined marginally by 4.2%. Foreign portfolio investment (FPI) flows were volatile, with three months of strong inflows and six months of net outflows between April and December 2025, resulting in a modest net outflow of $3.9 billion, compared with net inflows of $10.6 billion in the year-ago period.

The Survey attributed the subdued FPI trend to elevated global uncertainty and investors’ growing preference for AI-related assets in markets such as the US, Taiwan and Korea. As a result, India recorded a balance of payments deficit of $6.4 billion in the first half of FY26, against a surplus of $23.8 billion a year earlier, financed through a drawdown in foreign exchange reserves.

The Economic Survey 2025-26 has raised questions about India’s IT sector’s cost advantage model amid rising adoption of AI. It notes that this risks hollowing out India’s core value proposition if adaptation lags.

“If the country is to sustain its competitive edge in IT, a comprehensive evolution is necessary, one that takes full advantage of the potential embedded in AI development and deployment,” the survey adds.

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The Economic Survey tabled on January 29 cautioned the government against resorting to short-term measures to address immediate pressures, instead calling for a focus on building resilience and fostering innovation to stay on course towards Viksit Bharat. Emphasising the need for patience, Chief Economic Adviser V. Anantha Nageswaran wrote in the survey’s preface that “the country stands to gain immensely when all of us embrace delayed gratification.”

Chief Economic Adviser V. Anantha Nageswaran is briefing media over the Economic Survey 2026.

Chief Economic Adviser V. Anantha Nageswaran said India’s macroeconomic indicators remain stable, noting that the current account balance is “very well behaved” and the country’s import cover has strengthened to nearly a year. He added that core inflation is also well behaved when gold and silver are excluded, with benign inflation trends expected to continue into next year. Highlighting India’s relative performance, the CEA said the country’s growth numbers stand out globally, while external debt has declined to 19.2% from 23.8% last year, underscoring improving external sector resilience.

Chief Economic Adviser V Nageswaran said that the banning of online gaming is significant not only for mental health but also for protecting people’s financial well-being.

Chief Economic Advisor V. Anantha Nageswaran says, "We are achieving these high growth rates consumption and investment spending amidst a very moderate inflation environment. This year, it is projected to be about 1.7% on average so far for the first nine months of the year."

During the post–Economic Survey media briefing, Chief Economic Adviser V. Anantha Nageswaran said rising obesity in India is a major challenge to fully realising the country’s demographic dividend. He called for clearer food labelling to highlight health risks, saying this would help people make more informed and conscious choices about what they consume.

Chief Economic Adviser V. Anantha Nageswaran said India should not hesitate to embrace 'Swadeshi' in the current global environment. He also urged a realistic assessment of the renewable energy transition, noting that if renewables are to form a significant part of the energy mix, policymakers must fully account for the material and energy requirements involved and approach the shift with “open eyes.”

Chief Economic Adviser V. Anantha Nageswaran said India can achieve strategic indispensability through 'Swadeshi', ecosystem-first reforms, boosting competitiveness, building an entrepreneurial state, and replacing colonial-era bureaucracy.

"The annual growth rate over the last five years has been 29%. That reflects ample resource availability in the system for economic activity and investment spending," CEA Nageswaran told media.

Chief Economic Adviser V. Nageswaran said India’s potential GDP growth is estimated at 7%, though it remains subject to geopolitical shocks and other external factors. He added that with effective implementation of manufacturing and growth-oriented reforms, the growth rate could rise further, potentially reaching 7.5% to 8%.

"The Economic Survey reflects "cautious pragmatism" across the document. Despite the uncertainties, the Economic Survey is calling out medium-term growth potential to strengthen from earlier 6.5% to 7.0%. We can expect India to be the fastest growing major economy next year as well. This augurs well for the employment scenario for the country. The manufacturing and services sector is expected to drive the growth while Agriculture providing the stability. The rural employment is expected to transform from larger participation in employment guarantee schemes to evolving new employment avenues driven by the greater rural economic activity by the private sector," said Ashok Varma, Partner, Inclusion Ecosystems Leader, Grant Thornton Bharat.

“CII concurs with the Survey’s assessment of India’s growth outlook, with the projected growth rate of 6.8–7.2 per cent in FY27 appearing realistic amid global uncertainties and external headwinds. It is our sense that with moderate level inflation, we can be looking at double digit nominal growth, which should help augment revenues and therefore, have a moderating effect on borrowings. That would further ease pressures on real interest rate thus triggering a virtuous cycle,” said Chandrajit Banerjee, Director General, CII.

“It is heartening that the Survey underscores the unifying role of state capacity, society, and deregulation in advancing India’s development and strengthening its global influence. Reflecting this, the medium-term potential growth of Indian economy has been upgraded to 7%, up from 6.5% three years ago. This is also very welcome in a fractured world where such kind of sustained growth would be a stand out feature.”

“We find the Survey’s thrust on the requirement of the state machinery to evolve into an ‘entrepreneurial state’ by building deeper system-level institutional capacity and adopting entrepreneurial policymaking to support growth with job creation, as an imperative, which needed emphasis,” he added.

"For start-ups operating in the audio-visual category, growth is closely linked to infrastructure creation. More PSUs, tech parts, and smart cities directly translate into demand for electronic media solution providers. FM Nirmala Sitharaman should prioritise public infrastructure, digital workplaces, and smart urban projects to create real opportunities for India tech solution providers," said Alok K. Chaubey, founder of Keytech Enterprises.

"The Economic Survey 2025-26 highlights India’s strong macroeconomic performance and the Indian economy's continued strong growth momentum. Supported by strong macro fundamentals and a series of regulatory reforms, the Indian economy will not only sustain growth but also accelerate. The Economic Survey has made a strong case that with a stable domestic economy, controlled inflation, healthier balance sheets, resilient consumption demand and improved private investment, India’s growth potential has strengthened, positioning the economy on a path of steady expansion amid global uncertainty," said Union Defence Minister Rajnath Singh.

“As India prepares for the upcoming Union Budget, the focus must remain on strengthening the digital and physical backbone that powers the country’s MSMEs and new-age commerce businesses. Continued investments in logistics infrastructure, digital public platforms, and technology-led supply chains will be critical to reducing friction, improving cost efficiencies, and enabling scale for millions of sellers across Bharat. From a fiscal standpoint, policy clarity on incentives for tech-led exports and improved access to affordable credit for MSMEs can significantly accelerate formalisation and sustainable growth. A Budget that balances fiscal prudence with targeted support for innovation and ease of doing business will go a long way in reinforcing India’s position as a global commerce and manufacturing hub,” said Tanmay Kumar, Chief Financial Officer, Shiprocket.

The Economic Survey 2025–26 noted that nearly two decades after its enactment, the Right to Information (RTI) Act may benefit from a careful re-examination—not to weaken it, but to align it with global best practices and evolving lessons while preserving its original intent.

The Survey suggested exploring exemptions for brainstorming notes, working papers, and draft comments until they become part of final decision-making records.

Other options include protecting service records, transfers, and confidential staff reports from requests of limited public value, and considering a narrowly defined ministerial veto, subject to parliamentary oversight, to prevent disclosures that could hinder governance. These are not prescriptions, but ideas meant to spark discussion on keeping the RTI Act effective while safeguarding the integrity of decision-making.

India’s Chief Economic Advisor V Anantha Nageswaran while speaking at Economic Survey 2025–26 press conference on Thursday, said that a trade deal with the US could bolster the country’s GDP growth rate beyond 7% or further.

Yashraj Bhardwaj, Co-founder and COO, Petonic AI said, "As we approach Budget 2026, the government has an encouraging opportunity to further strengthen the new income tax regime and make it more appealing for a broad base of taxpayers. The move towards a simpler and more transparent tax structure is a welcome step, and with a few calibrated refinements, its impact can be meaningfully enhanced. Rationalising tax slabs, increasing the basic exemption limit, and providing limited, well-designed deductions within the new regime would help improve disposable incomes while preserving ease of compliance. Aligning tax thresholds with inflation and evolving income patterns can also encourage wider adoption. A balanced and forward-looking tax framework will not only support consumption and savings but also reinforce confidence among professionals and entrepreneurs, contributing positively to India’s long-term growth story.”

Private Final Consumption Expenditure grew by 7.0 per cent in FY26, reaching 61.5 per cent of GDP, the highest since 2012 (FY23 also recorded 61.5 per cent share). This growth is supported by low inflation, stable employment, and increasing real purchasing power. Strong agricultural performance has bolstered rural consumption, while improvements in urban consumption, aided by tax rationalisation, indicate broad-based demand momentum.

Fiscal deficits of states have gradually edged up over the past three years to 3.2%, reflecting emerging pressures on state finances, the Economic Survey 2026 tabled by Finance Minister Nirmala Sitharaman on Thursday said. The key document, which assesses the health of the economy ahead of the annual Budget, also noted that while states have increased spending, their revenue growth has lagged.

“A key driver of this renewed fiscal stress has been lagging revenue growth relative to nominal GDP growth, compounded by the incurring of expenditures such as discretionary unconditional cash transfers,” the Survey said.

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