Economic Survey FY 2025-26: All You Need to Know

Just like previous years, the Government of India tabled the Economic Survey for 2025-26 before the Union Budget 2026. Finance Minister Nirmala Sitharaman presented the document ahead of the Union Budget scheduled for 1 February 2026.

What Is the Economic Survey?

The Economic Survey is prepared by the Department of Economic Affairs. It is under the Ministry of Finance. It is the government’s annual examination of how the economy performed in the past year and what lies ahead. It sets the policy context for the budget and outlines risks, buffers and priorities at a time when global growth remains uneven.

Economic Survey 2025-26: Key Talking Points

Here are some of the major highlights of the Economic Survey of FY 2025-26:

Growth Outlook Amid Global Uncertainties

The Economic Survey 2025–26 pegged India’s economy to grow between 6.8% and 7.2% in FY27. This, even as it flagged pressure from global trade uncertainty and a tougher tariff stance by the United States.

The survey said India remains relatively well placed despite a strained global environment marked by tighter financial conditions and rising trade barriers. It said strong macro fundamentals, steady domestic demand and ongoing regulatory reforms support the FY27 growth outlook.

Trade Talks With US, Export Performance

The survey said India’s ongoing trade negotiations with the United States are expected to conclude during the year. It added that the conclusion of these talks could help reduce uncertainty on the external front. No further details were provided.

Despite tariff pressures, India’s export performance remained strong. Total exports of goods and services touched a record $825.3 billion in FY25. Momentum continued into FY26.

Strong External Buffers and Low Inflation

As per the survey, India’s foreign exchange reserves increased to $701.4 billion as of 16 January 2026. This provides cover for about 11 months of imports and covers 94% of the country’s external debt.

Remittance inflows remained robust. India continued to be the world’s largest recipient of remittances, with inflows reaching $135.4 billion in FY25.

Inflation stayed muted during the year. Domestic inflation averaged 1.7% between April and December 2025, supported by stable core prices and improved food supply conditions, the survey said.

Banking, Markets and Household Participation

Asset quality in the banking system improved further. Gross non-performing assets fell to a multi-decadal low of 2.2% in September 2025, the survey said.

Financial inclusion indicators also showed steady expansion. Under the Pradhan Mantri Jan Dhan Yojana, 55.02 crore bank accounts had been opened as of March 2025. Of these, 36.63 crores were in rural and semi-urban areas.

Participation in capital markets widened. The number of unique investors crossed the 12-crore mark in September 2025. 25% of these investors were women, according to the survey.

Manufacturing Recovery and PLI Push

Manufacturing activity showed signs of structural recovery in FY26. Gross value added in manufacturing grew 7.72% in the first quarter and 9.13% in the second quarter, the survey said.

The government’s Production Linked Incentive (PLI) schemes across 14 sectors attracted more than ₹2 lakh crores of actual investment as of September 2025. These investments resulted in incremental production and sales exceeding ₹18.7 lakh crore and created over 12.6 lakh jobs, the survey noted.

Agriculture and Rural Support

Foodgrain production was estimated at 3577.3 lakh metric tonnes (LMT) in the agriculture year (AY) 2024–25. This marked an increase of 254.3 LMT over the previous year.

Under the PM-Kisan scheme, more than ₹4.09 lakh crores have been released to eligible farmers. The survey also highlighted the proposed Vikshit Bharat-GramG framework. It described it as a statutory overhaul of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) to align rural employment with the long-term vision of Viksit Bharat 2047.

Importance of Economic Survey Investors

For sectors, the survey points to continued support for manufacturing, exports and services. It signalled limited stress in banking and household balance sheets. Low inflation and strong external buffers reduce near-term macro risk, even as global trade remains uncertain.

For investors, the survey offers a snapshot of where policy support and growth momentum may concentrate in FY27.

Sources:

Livemint

The Times of India

The Hindu