India’s economy is projected to expand at a steady pace in the financial year 2025–26, with gross domestic product (GDP) expected to grow between 6.3 % and 6.8 %, according to the Economic Survey 2025-26 tabled in Parliament. This outlook, which precedes the presentation of the Union Budget 2025–26, reflects a cautious but balanced assessment of the macroeconomic environment, underpinned by robust domestic demand and solid economic fundamentals despite global uncertainties.

Key Highlights

• Economic Survey 2025 projects India’s GDP growth between 6.3% and 6.8% in FY26.
• Strong domestic demand, stable inflation, and sustained reforms support India’s medium-term economic outlook.

The Economic Survey, prepared ahead of the annual budget exercise, highlighted that India’s growth trajectory remains intact even in the face of external headwinds such as trade tensions and geopolitical instability. The Range of 6.3 %–6.8 % for FY26 signifies a modest moderation from previous years but still places India among the faster-growing major economies globally.

Strong private consumption, resilient investment activity, and continued government reforms are cited as key factors supporting economic expansion. The survey noted that stable inflation, a healthy external account, and calibrated fiscal policy will be critical in sustaining growth momentum. It also emphasised the need for structural reforms to enhance global competitiveness and absorb potential shocks.

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As policymakers prepare the full budget, the GDP projection will play an important role in shaping fiscal priorities, including incentives for investment, infrastructure spending, and measures aimed at boosting job creation and consumption across sectors.