Economic Survey 2025-26: Key Highlights

The Economic Survey 2025-26 released by the Ministry of Finance shows that India’s economy remains strong and stable despite global pressure. The Survey says India is one of the fastest-growing major economies in the world.

Growth and Macroeconomy

• The First Advance Estimates project real GDPgrowth at 7.4% and GVA growth at 7.3% in FY26, confirming India as the fastest-growing major economy for the fourth year in a row.
• India’s potential growth rate stands at around 7%, while FY27 real GDP growth is projected at 6.8–7.2%.
• Private Final Consumption Expenditure grew by 7.0% in FY26, reaching 61.5% of GDP, the highest share since 2012.
• Gross Fixed Capital Formation grew by 7.8% in FY26, with investment holding steady at 30% of GDP.
• Services GVA grew by 9.3% in H1 FY26, remaining the main driver of growth.

Fiscal Developments

• Centre’s revenue receipts increased to 9.2% of GDP in FY25 (PA), up from a pre-pandemic average of 8.5%.
• Non-corporate tax collections rose to 3.3% of GDP, reflecting higher compliance and income growth.
• Income tax return filers increased from 6.9 crore in FY22 to 9.2 crore in FY25.
• Gross GST collections reached ₹17.4 lakh crore during April–December 2025, growing by 6.7% YoY.
• Effective capital expenditure of the Centre rose to 4% of GDP in FY25, up from 2.7% before the pandemic.
• India reduced its general government debt-to-GDP ratio by 7.1 percentage points since 2020 while sustaining high public investment.
• India received three sovereign credit rating upgrades in 2025.

Monetary and Financial Sector

• Gross NPAs of scheduled commercial banks fell to 2.2% in September 2025, a multi-decade low.
• Net NPAs declined to 0.5%, a record low.
• Bank credit growth accelerated to 14.5% YoY by December 2025.
• Under PMJDY, 55.02 crore bank accounts have been opened, including 36.63 crore in rural and semi-urban areas.
• Unique investors crossed 12 crore in September 2025, with nearly 25% women.
• Demat accounts exceeded 21.6 crore, with 235 lakh accounts added in FY26 (till December).

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External Sector

• India’s share in global merchandise exports increased from 1% in 2005 to 1.8% in 2024.
• India’s share in global services exports more than doubled from 2% to 4.3%.
• Total exports reached USD 825.3 billion in FY25, growing by 6.1% YoY.
• Services exports hit a record USD 387.6 billion in FY25, growing by 13.6%.
• India remained the world’s largest recipient of remittances, receiving USD 135.4 billion in FY25.
• Foreign exchange reserves rose to USD 701.4 billion as of 16 January 2026, covering 11 months of imports and 94% of external debt.

Inflation

• Average CPI inflation stood at 1.7% during April–December 2025, the lowest since the CPI series began.
• India recorded a 1.8 percentage point decline in headline inflation between 2024 and 2025, among the sharpest globally.

Agriculture and Rural Economy

• Foodgrain production reached 3,577.3 LMT in AY 2024–25, an increase of 254.3 LMT over the previous year.
• Livestock GVA increased by nearly 195% between FY15 and FY24.
• Fish production increased by over 140% during 2014–2024.
• More than ₹4.09 lakh crore has been transferred to farmers under PM-KISAN since inception.
• e-NAM has onboarded 1.79 crore farmers and 4,698 FPOs across 1,522 mandis.

Services Sector

• Services’ share reached 53.6% of GDP and 56.4% of GVA, the highest ever.
• Services attracted over 80% of total FDI inflows during FY23–FY25.
• India ranks as the 7th largest exporter of services globally.

Industry and Manufacturing

• Manufacturing GVA grew by 7.72% in Q1 and 9.13% in Q2 of FY26, showing structural recovery.
• PLI schemes across 14 sectors attracted over ₹2.0 lakh crore in investment, generating ₹18.7 lakh crore in incremental output and 12.6 lakh jobs.
• India Semiconductor Mission approved 10 projects worth ₹1.60 lakh crore across 6 States.
• India’s Global Innovation Index rank improved to 38 in 2025, from 66 in 2019.

Infrastructure and Connectivity

• Government capex increased from ₹2.63 lakh crore in FY18 to ₹11.21 lakh crore in FY26 (BE).
• High-speed corridors expanded from 550 km to 5,364 km.
• Railways added 3,500 km in FY26, with 99.1% electrification achieved.
• India became the world’s 3rd largest domestic aviation market, with airports increasing from 74 to 164.
• DISCOMs recorded a historic profit of ₹2,701 crore in FY25.
• India ranks 3rd globally in renewable energy and installed solar capacity.

Education, Health, and Employment

• GER stands at 90.9 (primary), 90.3 (upper primary), and 78.7 (secondary).
• India now has 23 IITs, 21 IIMs, and 20 AIIMS, including IIT campuses in Zanzibar and Abu Dhabi.
• Maternal mortality declined by 86% since 1990, far exceeding the global average.
• Over 31 crore unorganised workers are registered on e-Shram, with 54% women.
• Vacancies on the National Career Service portal crossed 2.8 crore in FY25.

Poverty and Long-Term Strategy

• Multidimensional Poverty declined from 55.3% in 2005–06 to 11.28% in 2022–23.
• The Survey proposes “Disciplined Swadeshi”, moving from self-reliance to strategic indispensability, with a focus on cost reduction, advanced manufacturing, and global integration.

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