Economic Survey 2026: Highlights, Summary, PDF Download

The Economic Survey 2025–26 presents the Government of India’s official assessment of the country’s economic performance, structural challenges, and policy priorities in FY 2025–26. It was tabled in Parliament on 29 January 2026, ahead of the Union Budget 2026. 

What is the Economic Survey 2026?

The Economic Survey is an annual report prepared by the Chief Economic Adviser to the Government of India and tabled in Parliament before the Union Budget. It serves as a factual backdrop to the Union Budget 2026. 

It provides:

• A review of macroeconomic and sectoral performance
• An assessment of fiscal, monetary, and external sector developments
• A medium-term economic outlook
• Policy frameworks and structural reform priorities

Economic Survey 2026 PDF Download

The official Economic Survey 2025–26 PDF includes detailed statistical tables, charts, and chapter-wise assessments of India’s economic performance and policy framework. 

The survey is released on the official India Budget website of the Ministry of Finance.

India’s Economic Growth Outlook

The Survey notes that India continues to remain among the fastest-growing major economies. Growth during FY26 was primarily supported by domestic consumption and investment demand. 

• Public capital expenditure increased more than threefold between FY20 and FY25, rising from ₹3.4 lakh crore to ₹10.5 lakh crore. 
• Services remained the largest contributor to Gross Value Added (GVA).
• Private consumption growth was supported by low inflation, rising real incomes, stable employment conditions, and tax rationalisation.
• Investment momentum remained strong due to high public capital expenditure and improving private sector balance sheets. 
• External demand remained stable, with services exports offsetting global trade uncertainty.

Looking ahead, the Survey projects real GDP growth for FY27 in the range of 6.8%–7.2%. Medium-term potential growth is assessed at around 7%, supported by reforms, infrastructure investment, and productivity gains.

Summary of the Economic Survey 2026

The Economic Survey 2025–26 provides a sector-wise assessment of India’s economic performance using official statistics, programme-level data, and implementation outcomes across the economy.

Consumption and Investment Trends

• Private Final Consumption Expenditure (PFCE) rose to 61.5% of GDP, the highest level since FY12. PFCE recorded 7.5% growth in H1 FY26, supported by low inflation and rising real incomes.
• Rural demand improved due to favourable monsoons and higher real wages. 
• Corporate investment announcements reached record levels, indicating a firming investment cycle.
• Gross Fixed Capital Formation (GFCF) stood at around 30% of GDP. GFCF grew by 7.6% in H1 FY26, driven by public capex and revival in private investment.

Inflation and Price Stability

• Average headline retail inflation in India moderated sharply to 1.7% in FY26 (April–December) from 6.7% in FY23.
• Global headline inflation declined from a peak of 8.7% in CY 2022 to 4.2% in CY 2025.
• Food inflation declined steadily during FY26 and entered deflationary territory from June 2025. Food price deflation was the primary contributor to lower headline inflation.
• Core inflation remained elevated mainly due to precious metals prices.
• During April–December 2025, Kerala recorded the highest headline inflation at 8.05%, while Manipur recorded the lowest at –0.15%.
• Several states reported inflation rates outside the RBI tolerance band during April–December 2025, higher than in preceding years.

Fiscal Developments and Public Finance

• Fiscal policy balanced growth support with consolidation during FY26.
• Revenue receipts rose to 9.1% of GDP (FY22–FY25) from 8.5% pre-pandemic, driven by tax buoyancy.
• GST collections reached ₹17.4 lakh crore during April–December 2025, reflecting an expanded tax base. GST collections move closely with nominal GDP growth, reflected in a strong correlation of 0.92.
• Excise and customs duty collections weakened due to cuts on petroleum products and targeted reductions in raw materials duties to support domestic manufacturing and control input costs.
• Capital expenditure reached nearly 60% of the FY26 budget by November 2025.
• The Centre remains on track to meet the fiscal deficit target of 4.4% of GDP in FY26.
• External debt remained low at ~2.6% of GDP, limiting foreign currency risk.

Nudge Initiative Outcomes

The NUDGE campaign of the Income Tax Department has positively influenced the revenue collection and better compliance. The following are the outcomes of the NUDGE initiative.

Monetary Policy and Banking Sector

• The policy repo rate was cut by 125 bps since February 2025, improving monetary transmission.
• Lending rates declined across major segments, supported by liquidity infusion.
• Bank NPAs fell to multi-decade lows, strengthening balance sheets.
• Corporates increasingly used market-based and non-bank financing.
• India led globally in IPO issuances, with strong primary market activity.
• S&P upgraded India’s insolvency regime to Group B in December 2025, with 57% resolutions rescued.
• Household investments shifted towards mutual funds, growing faster than direct equity holdings.
• FPI flows remained volatile, with net equity outflows of ₹16.5 thousand crore as of 13 January 2026.

External Sector Performance

• The current account deficit remained moderate at 0.8% of GDP in H1 FY26.
• Services exports and remittances continued to offset the merchandise trade deficit.
• Foreign exchange reserves covered over 11 months of imports during FY26.
• The rupee movement during FY26 remained orderly and aligned with fundamentals.
• India’s share in global merchandise exports increased from 1% in 2005 to 1.8% in 2024, while services exports rose from 2% to 4.3%.
• Total exports reached USD 825.3 billion in FY25, recording 6.1% year-on-year growth.
• Petroleum crude, gold, and petroleum products accounted for over one-third of total imports, with gold imports recording a strong year-on-year increase.
• Pharmaceutical exports expanded nearly sixteenfold between FY01 and FY25.

Agriculture and Food Management

• The agriculture and allied sector recorded an average annual growth of around 4.4% over the last five years at constant prices.
• Between FY15 and FY24, the livestock sector’s GVA increased by nearly 195%, growing at a CAGR of 12.77% at current prices.
• Foodgrains production continued to rise despite climatic and input-related challenges.
• In FY 2024–25, foodgrains output is estimated at 3,577.3 lakh metric tonnes, an increase of 254.3 LMT over the previous year.

State Capacity and Governance Reforms

• The Survey identifies state capacity as a key constraint to long-term growth.
• A national Compliance Reduction and Deregulation Initiative was launched in January 2025.
• 23 priority reform areas were identified across land, labour, utilities, and approvals.
• Out of 828 identified reforms, 630 reforms (76%) were implemented by January 2026.
• Digitisation, self-certification, and third-party inspections reduced compliance burdens.

Industrial Sector Performance

• Industrial GVA is projected to grow by 6.2% in FY26.
• Manufacturing growth reached 8.4% during H1 FY26, supported by strong domestic demand.
• High capacity utilisation supported expansion in manufacturing output.
• Construction activity remained strong due to sustained infrastructure investment.
• The decline in manufacturing’s nominal GVA share reflected price effects rather than output contraction.

Services Sector Performance

• Services GVA is estimated to grow by 9.1% in FY26, accelerating from FY25.
• Strong growth was recorded across financial services, professional services, trade, transport, and public services.
• High-frequency indicators such as PMI services, freight movement, and port traffic confirmed sustained momentum.
• Services remained the primary driver of India’s overall economic growth.

Infrastructure

• The government’s capital expenditure for FY26 increased by 89% to ₹11.21 lakh crore, compared to FY22.
• The national highway network expanded to 1,46,572 km by December 2025. High-speed highway corridors in operation increased to 5,364 km.
• Around 96.4% of the Dedicated Freight Corridor (DFC) network was commissioned by October 2025 to reduce freight transit time.
• Approximately 80% of rural households had access to clean tap water as of December 2025.
• Under Pradhan Mantri Awas Yojana, 2.93 crore houses have been completed out of 3.86 crore sanctioned houses.

Education & Health

• India operates 14.71 lakh schools, supported by 1.01 crore teachers, serving approximately 24.69 crore students.
• India’s tuberculosis treatment success rate improved to 92% which is significantly higher than the global average of 78%.
• The Economic Survey 2026 recommends age-based restrictions on social media and gambling apps to safeguard youth mental health.

Employment & Skill Development

• 8.7 lakh new jobs were created between Q1 and Q2 of FY26.
• Total employment reached 56.2 crore persons in Q2 FY26.
• Over 43.47 lakh apprentices have been engaged under the National Apprenticeship Promotion Scheme (NAPS).
• Rural self-employment increased to 12.9 crore individuals, with 29% women, strengthening the non-farm rural economy.
• The number of gig workers increased by 55% between FY21 and FY25. New provisions enable gig workers to be registered under social security schemes.

Rural Development

• Over 36.63 crore bank accounts were opened in rural and semi-urban areas under PM Jan Dhan Yojana as of March 2025.
• General government spending on social services increased to 7.95% of GDP.
• ₹86,000 crore was allocated to MGNREGA in FY26 to support asset creation and poverty reduction.
• The Kisan Credit Card loan limit was increased from ₹3 lakh to ₹5 lakh.
• Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) received a 26.3% increase in funding to support rural women through self-help groups and entrepreneurship.

AI Ecosystem in India

• The Survey estimates that the AI transition could impact 38 million employees in the organised sector by 2030.
• AI adoption is projected to raise productivity by 2.61% by 2030.
• The government recommends large-scale skilling programmes to address potential job displacement.
• The Survey cautions that the global AI boom driven by excessive leverage could pose risks to financial stability. It recommends prioritising application-driven AI innovation focused on solving real-world problems rather than capital-intensive models.

Urbanisation

• While the Census estimated urbanisation at 31%, the UN’s DEGURBA method estimated 63% urbanisation in 2015 using satellite data.
• Low Floor Space Index (FSI) forces horizontal urban expansion, raising infrastructure and housing costs.
• India faces an estimated demand for 30 million affordable housing units by 2030. The share of affordable housing declined from 52.4% in 2018 to 17% in 2025.
• Only 28% of urban domestic wastewater is currently treated. The Survey suggests a market-based approach for reusing treated wastewater in industrial and construction activities.

The Economic Survey 2025–26 presents a data-driven assessment of India’s economic performance across growth, inflation, public finance, external trade, and key sectors. It consolidates official statistics and programme outcomes, providing the factual baseline for evaluating economic conditions ahead of the Union Budget 2026.

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