For the financial year 2025-26 (FY26), India’s GDP growth is expected to be between 6.3% and 6.8%, as per the Economic Survey 2024-25. The projection indicates that economic growth may remain slow in the coming year.
The economic survey released by the government said, “The fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation and stable private consumption. On balance of these considerations, we expect that the growth in FY26 would be between 6.3 and 6.8 per cent”. The survey further said that the manufacturing sector faced pressures due to weak global demand and domestic seasonal conditions.
“Private consumption remained stable, reflecting steady domestic demand. Fiscal discipline and strong external balance supported by a services trade surplus and healthy remittance growth contributed to macroeconomic stability. Together, these factors provided a solid foundation for sustained growth amid external uncertainties,” said the economic survey.
The Economic Survey mentioned that food inflation, which has been a topic concern in recent months, is expected to soften in the last quarter of FY25. This will be helped by a seasonal decline in vegetable prices and the arrival of the kharif harvest. Additionally, a good rabi crop in the first half of FY26 is expected to keep food prices in check, providing relief to consumers.
The survey acknowledged that there has been a slowdown in investment activity, but it described the decline as temporary. It pointed out that various factors, including policy support and improving business sentiment, could lead to a rebound in investments. It further said that domestic investment, output growth, and disinflation trends could see positive momentum in FY26.
The Economic Survey reiterated that India’s economic fundamentals remain strong. It highlighted factors such as a stable financial system, improving infrastructure, and government policies aimed at boosting growth. With macroeconomic stability in place, the said that India’s economy would continue to expand, supported by steady private consumption, controlled inflation, and investment growth.
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