Economic Survey Flags Slower Growth, Pegs FY27 GDP At Up To 7.2%

The Economic Survey 2025-26 forecasted the Indian economy to clock a growth rate in the range of 6.8 per cent to 7.2 per cent in the 2026-27 fiscal year (FY27). Tabled by Finance Minister Nirmala Sitharaman, the financial document gave an insight into how the domestic economy fared in this fiscal year and what lies ahead.

The growth estimate signals a moderation from the 7.4 per cent expansion projected for the current fiscal year, indicating a slight cooling in economic momentum going into FY26.

Sitharaman presented the survey in the Parliament on January 29, a few days ahead of the Union Budget 2026 presentation. The Budget Session started on January 28 and will conclude on April 2, 2026. The session will be spread across 30 sittings, with both Houses taking a break from February 13 to March 8.

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Global Headwinds Persist, India’s Outlook Remains Resilient

The global economic environment continues to remain fragile amid shifting geopolitical alignments, the Economic Survey said, noting that these changes will have a lasting impact on investment flows, supply chains and global growth. However, the survey underlined that India’s external stability remains a key strength, helping the economy withstand global uncertainties.

Chief Economic Advisor V. Anantha Nageswaran cautioned against short-term policy responses to global volatility, urging a focus on long-term resilience. “The global environment is being reshaped by geopolitical realignments that will influence investment, supply chains and growth prospects for years to come. Against today’s global churn, India must choose to build resilience, innovate relentlessly, and stay the course toward Viksit Bharat, rather than seek quick fixes to visible, short-term pressures,” he said.

Lower Inflation, Stable Jobs Support Consumption

On the domestic front, the Economic Survey highlighted improving consumption trends, supported by lower inflation, steady employment conditions and rising purchasing power. These factors, the survey said, are helping sustain economic momentum even as external challenges persist.

Notably, the government projected India’s GDP to grow in the range of 6.3 to 6.8 per cent in 2025-26 fiscal year (FY26) in the previous Economic Survey. However, latest estimates believed that the economy grew at a better-than-anticipated 7.4 per cent in the current financial year.