Economic Survey 2025-26: Growth Outlook and Global Risks
Why in the news
The Survey, tabled in Parliament, showed a strong medium-term outlook for India but cautioned that the world economy looks fragile.
Growth projections
| Period | Figure |
|---|---|
| FY 2025-26, government estimate | 7.4% |
| Q3 FY26 (Oct-Dec 2025), Survey nowcast | 7% |
| FY 2026-27 | 6.8% to 7.2% |
Drivers and reforms
- Higher capital accumulation, better labour force participation and efficiency in factor deployment.
- PLI schemes, FDI liberalisation, logistics reforms and steady public investment.
- Simpler tax laws, better tax administration, MSME credit measures, healthier balance sheets and rising formalisation.
Global risks
- The Survey calls the global environment fragile and insecure.
- Best-case scenario resembles 2025, but more fragile.
- All three global scenarios could hurt India.
Exam angle
- Medium-term growth: 7%.
- Earlier estimate: 6.5%.