Economic Survey 2025–26 highlights India’s GDP growth at 7.4%, inflation trends, fiscal consolidation, banking sector health, and external trade, crucial for competitive exams.
Economic Survey 2025–26: India’s Economic Health, Growth Outlook & Key Findings
The Economic Survey 2025–26, presented by Finance Minister Nirmala Sitharaman in Parliament ahead of the Union Budget 2026–27, offers a comprehensive assessment of India’s macroeconomic performance and future prospects. Prepared under the guidance of Chief Economic Advisor Dr. V. Anantha Nageswaran, this Survey serves as a crucial “report card” of the economy before the annual Budget and provides key insights relevant for policy makers, investors, and exam aspirants alike.
Strong Growth Trajectory: Real GDP & Potential Growth
One of the headline outcomes of the Survey is the robust projection for India’s GDP growth. The economy is estimated to grow at 7.4% in FY2025–26, reaffirming India’s position as the fastest‑growing major economy in the world for the fourth consecutive year. The Gross Value Added (GVA), a key indicator of output across sectors, is projected to expand by 7.3% in the same fiscal year. Further, the Survey projects a healthy growth rate of 6.8%–7.2% in FY2026–27, demonstrating continued resilience amidst global uncertainties.
Inflation Under Control: Stable Prices Boost Consumption
Headline consumer price inflation averaged around 1.7% during April–December 2025 — the lowest on record since the CPI series began. Low inflation has helped sustain private consumption, which grew at 7.0%, accounting for more than 61% of GDP — the highest share in almost a decade. Controlled inflation also increases the purchasing power of households and stronger domestic demand.
Fiscal Strength: Revenue Growth & Tax Expansion
Fiscal health indicators show credible consolidation. Central government revenue receipts rose to 9.2% of GDP in FY2025, reflecting improved tax compliance and buoyant tax collections. Income tax filings grew significantly from 6.9 crore in FY2022 to 9.2 crore in FY2025, and GST collections remained strong at ₹17.4 lakh crore (April–December 2025). Sovereign credit ratings also improved with upgrades from multiple agencies during 2025.
Banking & Financial Sector: Healthier Balance Sheets
The banking sector posted impressive improvements, with Gross Non‑Performing Asset (GNPA) ratios declining to a multi‑decadal low of 2.2% in September 2025. Credit growth accelerated to around 14.5%, and financial inclusion deepened with over 55 crore Jan Dhan accounts opened. The number of unique investors exceeded 12 crore, with a quarter of them being women. This reflects greater financial stability and inclusivity.
External Sector & Trade: Exports & Reserves
India’s external sector remained resilient, with services exports reaching an all‑time high of USD 387.6 billion and merchandise exports doubling their share over the past decade. Forex reserves stood at a comfortable USD 701.4 billion, covering nearly 11 months of imports. These trends helped cushion the current account and strengthened global economic integration.
Why This News Is Important for Competitive Exams
Core Economic Indicator for Current Affairs
The Economic Survey is among the most important documents in the Indian economic calendar. It not only sets the growth narrative ahead of the Union Budget but also provides data, analysis, and forecasts that are widely asked in General Studies papers of exams like UPSC Civil Services, State PSCs, and banking exams. Questions on GDP growth forecasts, inflation trends, fiscal consolidation, and sectoral performances often appear in both prelims and mains.
Relevance Across Multiple Government Exams
For exams like SSC CGL, Railway RRB, Defence and Police Staff Selection, understanding macroeconomic trends helps in both quantitative aptitude and reasoning sections (through economy data) as well as current affairs sections. Banking exams especially emphasize knowledge of inflation management, credit growth, financial inclusion, and banking sector health — all covered in the latest Survey.
Policy Implications & Analytical Insights
Since the Survey discusses monetary and fiscal policy mix, economic reforms, and structural sectors, it is useful for essay writing, interviews, and GD topics. Aspirants get analytical insights into how the economy is steering through global challenges and what structural reforms might boost future growth.
Historical Context: Economic Survey & Its Significance
The Economic Survey is an annual report prepared by the Ministry of Finance, usually presented a day before the Union Budget in Parliament. It outlines the performance of the Indian economy over the past year and provides projections, trends, and policy recommendations. Historically, this document has been a primary source for economic data and trend analysis for policymakers and students alike.
Since the 1991 reforms, India’s economic surveys have increasingly emphasized market reforms, fiscal discipline, and integration with global trade. Over the last decade, surveys have focused on issues such as financial inclusion (PMJDY), digital transformation (UPI, fintech expansion), and industrial competitiveness through programs like PLI schemes. The Economic Survey 2025–26 continues this tradition by presenting data on macroeconomic stability, inflation management, and sectoral expansion.
Key Takeaways from Economic Survey 2025–26
| S. No. | Key Takeaway |
|---|---|
| 1 | India’s real GDP growth for FY2025–26 projected at 7.4% — fastest among major economies. |
| 2 | Headline inflation averaged 1.7%, the lowest since CPI series inception. |
| 3 | Banking sector health improved with GNPA at 2.2% and strong credit growth. |
| 4 | Fiscal consolidation strengthened with rising tax base and sovereign upgrades. |
| 5 | External sector strong with record services exports and forex reserves ~USD 701.4 billion. |
FAQs: Frequently Asked Questions on Economic Survey 2025–26
1. What is the Economic Survey 2025–26?
The Economic Survey 2025–26 is an annual report prepared by the Ministry of Finance, assessing India’s macroeconomic performance, sectoral growth, fiscal health, and providing policy recommendations ahead of the Union Budget 2026–27.
2. Who prepares the Economic Survey?
The Survey is prepared under the guidance of the Chief Economic Advisor (CEA), currently Dr. V. Anantha Nageswaran, with inputs from the Economic Division of the Ministry of Finance.
3. What is the projected GDP growth for India in FY2025–26?
The Survey estimates India’s real GDP growth at 7.4%, positioning India as the fastest-growing major economy globally.
4. How is inflation trending according to the 2025–26 Survey?
Headline consumer price inflation averaged 1.7% during April–December 2025, the lowest since the inception of the CPI series, indicating stable prices and strong purchasing power.
5. What are the key highlights of India’s fiscal health?
Revenue receipts increased to 9.2% of GDP, income tax filings rose to 9.2 crore, and GST collections remained strong at ₹17.4 lakh crore, reflecting better compliance and fiscal consolidation.
6. How is India’s banking and financial sector performing?
The GNPA ratio declined to 2.2%, credit growth accelerated to 14.5%, and over 55 crore Jan Dhan accounts were active, showing stronger financial stability and inclusion.
7. What is the significance of the Economic Survey for competitive exams?
The Survey is a key source for current affairs, economic data, and policy trends, often asked in UPSC, SSC, Banking, Railways, Defence, and State PSC exams.
Some Important Current Affairs Links
