Team News Riveting
New Delhi, January 31
India is expected to record Gross Domestic Product (GDP) growth of 6.3-6.8 per cent in the financial year 2025-26, said the Economic Survey tabled in Parliament on Friday.
It is in line with the International Monetary Fund’s projection of the growth rate at 6.5 per cent between FY26 and FY27. As per the first advance estimates of national accounts, India’s real GDP is estimated to grow by 6.4 per cent in FY25. Growth in the first half of FY25 was supported by agriculture and services, with rural demand improving on the back of record Kharif production and favourable agricultural conditions.
According to the Economic Survey tabled by Finance Minister Nirmala Sitharaman, India displayed steady economic growth despite global headwinds It stated that the manufacturing sector faced pressures due to weak global demand and domestic seasonal conditions. Private consumption remained stable, reflecting steady domestic demand.
Also, the fiscal discipline and strong external balance supported by a services trade surplus and healthy remittance growth contributed to macroeconomic stability. Together, these factors provided a solid foundation for sustained growth amid external uncertainties, the survey said.
The survey highlighted that India’s economic prospects for FY26 are balanced. Rural demand backed by a rebound in agricultural production, an anticipated easing of food inflation and a stable macro-economic environment provide an upside to near-term growth. Overall, India will need to improve its global competitiveness through grassroots-level structural reforms and deregulation to reinforce its medium-term growth potential.
Headwinds to growth include elevated geopolitical and trade uncertainties and possible commodity price shocks. Domestically, the translation of order books of private capital goods sector into sustained investment pick-up, improvements in consumer confidence, and corporate wage pick-up will be key to promoting growth, the survey said.
The survey suggested that navigating global headwinds would require strategic and prudent policy management and reinforcing the domestic fundamentals.
Earlier, the Budget session of Parliament commenced with President Droupadi Murmu addressing the joint sitting of the Lok Sabha and the Rajya Sabha. The government has listed 16 draft legislations for consideration, including a Bill to regulate immigration and another to amend the Waqf Act of 1995.
The principal highlight of the session will be the presentation of the Union Budget by Finance Minister Nirmala Sitharaman for the record eighth time on February 1.
