India’s real GDP is estimated to grow by 6.4 percent in the financial year 2025, and the growth is likely to range between 6.3 and 6.8 percent in the financial year 2026. This was projected in the Economic Survey presented by the Union Finance Minister Nirmala Sitharaman in both Houses of Parliament today.
The Economic Survey highlights that the fundamentals of the domestic economy remain robust, with calibrated fiscal consolidation and stable private consumption. It mentioned that the country has displayed steady economic growth supported by the agriculture and services sector. Rural demand is witnessing improvement on the back of record Kharif production and favourable agricultural conditions. The survey highlights that the manufacturing sector faced pressures due to weak global demand and domestic seasonal conditions. Private consumption remained stable, reflecting steady domestic demand. The survey mentioned that fiscal discipline and strong external balance supported by a services trade surplus and healthy remittance growth contributed to macroeconomic stability. The survey also stressed improving the country’s global competitiveness through grassroots-level structural reforms and deregulation to reinforce its medium-term growth potential.
