The Budget session of Parliament began on Wednesday, and on Thursday, Finance Minister Nirmala Sitharaman presented the Economic Survey for in the Lok Sabha. The report projects India’s economic growth for 2026–27 at 6.8–7.2%, slightly lower than the 7.4% expected for the current financial year, suggesting a modest slowdown next year. The presentation marks the formal start of the lead-up to the Union Budget, which is scheduled to be unveiled on Sunday, February 1, making this year’s budget announcement a weekend event.
The Economic Survey, compiled by the Department of Economic Affairs under the Finance Ministry, reviews the government’s economic performance and is presented in Parliament ahead of the Union Budget. It assesses GDP growth and key developments from the previous year, while outlining policy priorities for the year ahead. The first Economic Survey was tabled in 1950–51.
This year's Economic Survey has stated that India's economy is stable. However, the survey also warned that slow growth in global markets and trade barriers caused by tariffs could have some impact on exports and investors.
The fiscal deficit held steady at 4.8% of GDP in FY2025, with the government targeting a reduction to 4.4% in FY2026.
Inflation climbed to 1.7% between April and December 2025, remaining largely subdued thanks to falling prices of vegetables and pulses.
The rupee underperformed expectations in 2025, but its weakness could partly cushion the impact of US tariffs.
Foodgrain production rose to 3,320 lakh tonnes, while rabi sowing expanded by 3.3%, bolstering both rural incomes and the country’s food security.
The world faces “Managed Disorder,” “Disorderly Multipolar Breakdown,” and “Systemic Shock Cascade”, underscoring the need for India to fortify its economic buffers.
It indicates investment and consumer demand are expected to pick up, as companies adjust to new policy reforms.
The Economic Survey 2026 has noted that India's economy has gained momentum despite the large tariff hike imposed by the US. Growth estimates were lowered in 2025 after the US decided to impose a combined 50 percent tariff on some Indian exports.
Economic Survey 2026 notes that India’s economy has gained momentum despite the US’s steep tariff increase. Growth projections were revised downward in 2025 after Washington imposed a combined 50% tariff on select Indian exports.
However, the survey observes that actual economic performance has exceeded expectations, attributing the resilience to structural reforms and policy measures implemented by the government. These initiatives, it says, have enabled the economy to sustain growth amid external pressures.
