Economic Survey 2025–26 shows strong growth, stable prices, and focus on future reforms

The Economic Survey 2025–26 was presented in the Lok Sabha by Finance Minister Nirmala Sitharaman. The survey is an important yearly report that explains how the Indian economy performed and what lies ahead. This year’s survey gives a positive picture of the economy. It highlights strong growth, better control over inflation, improved global confidence, and the need for long-term reforms to keep India on a steady path.

The survey shows that India continues to remain one of the fastest-growing major economies in the world. It also stresses that growth must be strong but also balanced, inclusive, and sustainable. Along with numbers and projections, the report focuses on key areas like agriculture, industry, technology, public investment, and governance.

Strong growth and economic stability

According to the survey, India’s real GDP growth for the financial year 2025–26 is estimated at 7.4 per cent. This is higher than earlier estimates and marks the fourth year in a row that India has remained the fastest-growing major economy. The survey says this growth is supported by strong domestic demand, steady reforms, and large government spending on infrastructure.

The report has also raised India’s potential growth rate to 7 per cent, compared to 6.5 per cent estimated a few years ago. This means the economy now has a higher capacity to grow over the long term. The survey credits this improvement to better roads, railways, ports, digital systems, and consistent policy efforts.

One of the biggest highlights is India’s credit rating upgrade in 2025. For the first time in almost twenty years, a major global rating agency upgraded India’s rating. This reflects stronger economic fundamentals, better fiscal discipline, and improved confidence among global investors. A better rating helps India borrow at lower costs and attracts more foreign investment.

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Inflation control is another key achievement mentioned in the survey. Consumer price inflation followed a clear downward trend and reached 1.7 per cent in 2025–26. The report says this was mainly due to lower food prices, improved supply management, and effective monetary steps. Low inflation helps common people by protecting their purchasing power.

On the fiscal front, the government continued its path of consolidation. The fiscal deficit for 2024–25 came in slightly lower than expected, and a further reduction target has been set for 2025–26. The survey notes that the government has reduced the deficit by more than half compared to the levels seen during the pandemic years, while still supporting growth.

Private consumption has emerged as a strong pillar of growth. Private spending reached its highest share of GDP in over a decade. The survey links this rise to stable jobs, better incomes, and improving consumer confidence. This shows that growth is not driven only by government spending, but also by household demand.

Reforms, resilience, and future vision

The Economic Survey strongly focuses on reforms that can shape India’s future. It calls for major changes in sectors like fertilisers, irrigation, and agriculture. The report suggests improving efficiency, reducing waste, and promoting crop diversification so that farmers earn more and agriculture becomes more resilient to climate risks.

Agriculture and allied sectors performed well during the year, with record cereal production. This helped keep food prices under control and supported rural incomes. The survey stresses the need to continue investing in irrigation, storage, and technology to make farming more sustainable and profitable.

A major theme of the survey is the idea of strategic resilience. Instead of only replacing imports, the report suggests making India a critical part of global value chains. The goal is to ensure that India becomes so important in certain sectors that it cannot be easily replaced. This approach aims to strengthen national security, create jobs, and boost exports.

The survey also talks about the role of the state. It encourages moving towards an “entrepreneurial state” that can take calculated risks, act during uncertainty, and build strong institutions. The report says the government should not only focus on rules and compliance, but also on developing deep capabilities in administration and policy design.

Technology, especially artificial intelligence, receives special attention. The survey notes that a large number of firms in India are already using AI in some form. However, it warns that technology adoption must match India’s realities. Factors like energy availability, capital, skills, and institutional strength must be considered carefully.

The report proposes a phased approach to AI adoption. It stresses the importance of investing in human capital, ensuring safety, and using AI to support development goals. The survey makes it clear that technology should strengthen long-term growth, not create new risks or dependencies.

Overall, the Economic Survey 2025–26 presents an optimistic yet cautious outlook. It celebrates strong growth, better stability, and rising global confidence, while also reminding policymakers of the need for reforms and smart choices. The message is clear: India is on a strong path, but sustained effort and balanced policies are essential to secure a stable and prosperous future.