India’s Growth Outlook for FY26: Economic Survey Predicts 6.3-6.8% Expansion

New Delhi: The Indian economy is expected to grow between 6.3% and 6.8% in the financial year 2025-26 (FY26), according to the Economic Survey 2024-25 presented in Parliament today by Finance Minister Nirmala Sitharaman.

The survey, released ahead of the Union Budget 2025-26, emphasizes India's strong economic fundamentals, declining unemployment rate, and stable inflation. It also highlights the need for further structural reforms to sustain growth in a globally uncertain environment.

"The fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation, and stable private consumption. On balance, we expect the growth in FY26 to be between 6.3% and 6.8%," states the Economic Survey.

Key Highlights of the Economic Survey 2024-25:

• Indian economy remains strong with a stable external account and private consumption.
• Food inflation is expected to ease in Q4 FY25, helped by the seasonal fall in vegetable prices and Kharif harvest arrivals.
• Geopolitical and trade uncertainties pose challenges to India’s economic momentum in FY26.
• Strategic policy management is crucial to navigate global challenges and reinforce domestic resilience.
• Improving global competitiveness requires grassroots-level reforms and deregulation.
• Inflation risks from commodity prices are expected to be limited, but geopolitical tensions remain a concern.
• Lack of AI governance frameworks could lead to potential misuse of technology.
• Insolvency law has helped thousands of debtors resolve distress at early stages.
• Boosting corporate bond market liquidity requires addressing entry costs, information gaps, and absence of a secondary market.

Finance Minister Nirmala Sitharaman is set to present the Union Budget 2025-26 on Saturday, where further policy directions for economic growth are expected.