The Economic Survey, which was tabled in the Parliament on Friday predicted India’s economy to grow between 6.3 per cent and 6.8 per cent in the next financial year 2025-26.
The survey, presented a day before the budget, highlightsthat the country’s economic fundamentals remain strong, supported by a stable external account, fiscal consolidation, and private consumption.
It revealed government plans to strengthen long-term industrial growth by focusing on research and development (R&D), micro, small, and medium enterprises (MSMEs), and capital goods.
These measures aim to enhance productivity, innovation, and global competitiveness.”The fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation and stable private consumption. On balance of these considerations, we expect that the growth in FY26 would be between 6.3 and 6.8 per cent,” it said.
The survey projected food inflation to ease in Q4 FY25 due to the seasonal decline in vegetable prices and the arrival of the Kharif harvest.
The survey also added that India’s foreign exchange reserves continue to be strong, covering 90 per cent of external debt and providing an import cover of over ten months. The reserves increased from $616.7 billion in January 2024 to $704.9 billion in September 2024 before moderating to $634.6 billion as of January 3, 2025. The stability in capital flows has played a key role in supporting India’s external strength.
The survey further highlighted significant growth in the formal employment sector. Net Employees’ Provident Fund Organisation (EPFO) subscriptions have more than doubled from 61 lakh in FY19 to 131 lakh in FY24.
