In response to the Economic Survey 2026, Prime Minister Narendra Modi affirmed that the document reflects India's steady progress amidst a challenging global environment. The survey, which was tabled in Parliament by Finance Minister Nirmala Sitharaman on January 29, 2026, highlights the nation's strong economic fundamentals and sustained growth, emphasizing inclusive development for farmers, MSMEs, and the youth.
The Economic Survey 2026 projects a promising outlook for the Indian economy, estimating real GDP growth at 7.4% for FY26. This reaffirms India's position as the fastest-growing major economy for the fourth consecutive year. The growth is attributed to continued macroeconomic resilience, low inflation, improved fiscal consolidation, and a strong banking and external sector, despite persistent global uncertainties. The survey underscores the structural transformation driven by robust services growth, manufacturing revival, infrastructure expansion, digital and financial inclusion, and poverty reduction.
Private Final Consumption Expenditure grew by 7.0% in FY26, reaching 61.5% of GDP, the highest since 2012. This surge in consumption is supported by low inflation, stable employment, and increasing real purchasing power. Investment activity has also strengthened, with Gross Fixed Capital Formation growing by 7.8% and maintaining a steady share of 30% of GDP.
The Economic Survey 2026 highlights the government's commitment to long-term strategic resilience and indispensability under the "Viksit Bharat 2047" framework. The survey emphasizes that policy credibility, predictability, and administrative discipline are becoming strategic assets. In an uncertain global environment, India needs to maximize growth while simultaneously strengthening buffers, liquidity, and shock-absorption capacity.
The survey also presents a comprehensive analysis of India's economic performance, including trends in growth, inflation, employment, and fiscal management. Sector-wise performance evaluations cover agriculture, industry, services, and infrastructure. India's foreign exchange reserves have increased to $701.4 billion as of January 16, 2026, providing import cover for approximately 11 months and covering over 94% of external debt. Domestic inflation averaged 1.7% between April and December 2025.
The Economic Survey recognizes a structurally changed global economy marked by uncertainty, weaker coordination, and geopolitical risks. It cautions that India faces potential disruptions to capital flows and pressure on the rupee, despite its strong domestic market and strategic autonomy. The document advocates for a "disciplined Swadeshi" approach to build critical capabilities, reduce input costs, strengthen advanced manufacturing, and progress from self-reliance to strategic indispensability.
