Economic Survey 2025–26: Key Highlights

Global environment remains fragile amid geopolitical tensions, trade fragmentation and financial vulnerabilities; impacts may surface with a lag.

India’s performance stands out against this backdrop.

First Advance Estimates place FY26 real GDP growth at 7.4 per cent and GVA growth at 7.3 per cent, making India the fastest-growing major economy for the fourth consecutive year.

Potential growth for India estimated at around 7 per cent.

Real GDP growth for FY27 projected at 6.8–7.2 per cent.

Private Final Consumption Expenditure grew 7.0 per cent in FY26, reaching 61.5 per cent of GDP, the highest since 2012.

Investment strengthened with Gross Fixed Capital Formation growing 7.8 per cent, share stable at 30 per cent of GDP, supported by public capex and revival in private investment.

Services remain the main growth driver; services GVA grew 9.3 per cent in H1 FY26 and is estimated at 9.1 per cent for the full year.

Prudent fiscal management strengthened macro-fiscal credibility, leading to three sovereign credit rating upgrades in 2025.

Centre’s revenue receipts rose to 9.2 per cent of GDP in FY25 (PA) from a pre-pandemic average of about 8.5 per cent.

Non-corporate tax collections increased from about 2.4 per cent of GDP pre-pandemic to around 3.3 per cent post-pandemic.

Income tax returns filed increased from 6.9 crore in FY22 to 9.2 crore in FY25, reflecting improved compliance and technology use.

Gross GST collections during April–December 2025 stood at ₹17.4 lakh crore, growing 6.7 per cent YoY.

Effective capital expenditure of the Centre rose to about 4 per cent of GDP in FY25.

Through SASCI, States maintained capital spending at around 2.4 per cent of GDP in FY25.

Combined fiscal deficit of States edged up to 3.2 per cent of GDP in FY25.

General government debt-to-GDP ratio reduced by about 7.1 percentage points since 2020.

Banking sector asset quality improved significantly.

GNPA ratio of SCBs stood at 2.2 per cent in September 2025; Net NPA at 0.5 per cent, both at record lows.

Outstanding bank credit grew 14.5 per cent YoY as of December 2025.

55.02 crore PMJDY accounts opened as of March 2025; 36.63 crore in rural and semi-urban areas.

PMMY disbursed over ₹36.18 lakh crore across 55.45 crore loan accounts by October 2025.

Total demat accounts crossed 21.6 crore; unique investors crossed 12 crore in September 2025, nearly 25 per cent women.

Mutual fund industry had 5.9 crore unique investors by December 2025, with growing participation from non-tier I and II cities.

India’s share of global merchandise exports nearly doubled from 1 per cent (2005) to 1.8 per cent (2024).

Share in global services exports increased from 2 per cent to 4.3 per cent during the same period.

Total exports reached a record USD 825.3 billion in FY25.

Services exports touched an all-time high of USD 387.6 billion, growing 13.6 per cent.

India remained the world’s largest recipient of remittances at USD 135.4 billion in FY25.

Forex reserves increased to USD 701.4 billion (16 January 2026), covering 11 months of imports and 94 per cent of external debt.

Gross FDI inflows reached USD 64.7 billion during April–November 2025.

Average headline inflation for April–December 2025 stood at 1.7 per cent, the lowest since the beginning of the CPI series.

Decline driven mainly by food and fuel prices, which account for 52.7 per cent of CPI basket.

Foodgrain production estimated at 3,577.3 LMT in AY 2024–25, an increase of 254.3 LMT over the previous year.

Horticulture production reached 362.08 MT, surpassing foodgrain output.

e-NAM onboarded 1.79 crore farmers, 2.72 crore traders, 4,698 FPOs, covering 1,522 mandis.

More than ₹4.09 lakh crore released under PM-KISAN since inception.

Industry GVA grew 7.0 per cent in H1 FY26.

Manufacturing GVA grew 7.72 per cent in Q1 and 9.13 per cent in Q2 FY26, reflecting structural recovery.

PLI schemes across 14 sectors attracted over ₹2.0 lakh crore investment, generating incremental production/sales of ₹18.7 lakh crore and 12.6 lakh jobs.

India Semiconductor Mission approved 10 projects involving about ₹1.60 lakh crore investment.

Operational high-speed corridors increased from 550 km (FY14) to 5,364 km (FY26).

Rail network reached 69,439 route km; 3,500 km targeted addition in FY26; 99.1 per cent electrification achieved.

India is the third-largest domestic aviation market; airports increased from 74 (2014) to 164 (2025).

DISCOMs recorded a positive PAT of ₹2,701 crore in FY25 for the first time.

Renewable energy constitutes 49.83 per cent of total installed capacity; India ranks third globally in renewable energy and installed solar capacity.

India became the fourth nation to achieve autonomous satellite docking (SpaDeX).

GER(Gross Enrollment ratio) stands at 90.9 (primary), 90.3 (upper primary) and 78.7 (secondary) stages.

India has 23 IITs, 21 IIMs and 20 AIIMS, with international IIT campuses in Zanzibar and Abu Dhabi.

Maternal mortality reduced by 86 per cent since 1990, outperforming global averages.

e-Shram portal registered over 31 crore unorganised workers, 54 per cent women.

Vacancies mobilised on NCS portal exceeded 2.8 crore in FY25.

Multidimensional Poverty Index declined from 55.3 per cent (2005–06) to 11.28 per cent (2022–23).

Survey proposes a calibrated three-tiered strategy distinguishing critical vulnerabilities, economically feasible capabilities and low-urgency substitutions.

Progression from self-reliance to strategic resilience and strategic indispensability.