GDP expected to grow by 6.3-6.8 per cent in FY26: Economic Survey
The Economic Survey 2024-25, tabled by finance minister Nirmala Sitharaman, said navigating global headwinds will require strategic and prudent policy management
Union Finance Minister Nirmala Sitharaman presents the Economic Survey 2024-25 in the Lok Sabha during the Budget session of Parliament, in New Delhi, Friday, Jan. 31, 2025. (Sansad TV via PTI Photo)
INDIA is expected to record GDP growth of 6.3-6.8 per cent in the financial year 2025-26 on the back of strong fundamentals, calibrated fiscal consolidation and stable private consumption, said the Economic Survey tabled in Parliament on Friday (31).
The economic growth rate is estimated to slip to 4-year low of 6.4 per cent in the current financial year.
The Economic Survey 2024-25, tabled by finance minister Nirmala Sitharaman in both houses of Parliament, said navigating global headwinds will require strategic and prudent policy management and reinforcing the domestic fundamentals.
The Budget 2024-25 laid out a multi-sectoral policy agenda for sustained growth push.
It further said that investment activity expected to pick up, supported by higher public capex and improving business expectations.
As regards inflation, it said risk from higher commodity prices seems limited in FY26. However, geopolitical tensions still an issue, it added.
Food inflation is likely to soften in Q4 FY25 with seasonal easing of vegetable prices and kharif harvest arrivals.
Other highlights
India needs to grow by 8 per cent on average for about a decade or two to become a developed nation by 2047.
India needs to improve its global competitiveness through grassroots-level structural reforms.
Forex at $640.3 billion sufficient to cover 10.9 months of imports and 90 per cent of external debt.
Ease of Doing Business (EoDB) 2.0 should be a state government-led initiative focused on fixing the root causes behind the unease of doing business.
India should redouble its efforts to boost exports and attract investment.
India needs a continued step-up of infrastructure investment over the next two decades for high growth.
Service oriented Indian economy vulnerable to automation, impact of AI is magnified for India given its size and its relatively low per capita income.
Corporate sector has to display a high degree of social responsibility.
Reserach to increase pulses, oilseeds, tomato, onion production needed to develop climate-resilient crop varieties, enhancing yield and reducing crop damage.
Investments need to grow at 35 per cent, up from 31 per cent, to achieve required growth.
Focus of reforms, economic policy must now be on systematic deregulation.
Need to develop the manufacturing sector further and invest in emerging technologies such as AI, robotics, and biotechnology. (PTI)
