India maintains top growth spot while inflation stays tamed
Union Minister for Finance and Corporate Affairs Nirmala Sitharaman presented the Economic Survey 2025-26 in Parliament, showcasing a robust national economy that continues to lead global growth charts.Despite a fragile international environment marked by geopolitical tensions and trade fragmentation, India stands out as a beacon of stability.
The latest estimates project India's real GDP growth for the financial year 2026 at 7.4 per cent, with Gross Value Added (GVA) following closely at 7.3 per cent.This performance solidifies India’s position as the fastest-growing major economy for the fourth year in a row.Looking ahead to FY27, the survey remains optimistic, forecasting a real GDP growth range of 6.8 to 7.2 per cent.
A significant driver of this momentum is Private Final Consumption Expenditure, which climbed to 7.0 per cent in FY26, representing 61.5 per cent of the total GDP.This surge is attributed to low inflation, stable job markets, and improved purchasing power.Investment activity also showed strength, with Gross Fixed Capital Formation growing by 7.8 per cent, supported by both public spending and a revival in private sector investments.
The government’s fiscal management has earned international praise, resulting in three sovereign credit rating upgrades in 2025.Centre's revenue receipts rose to 9.2 per cent of GDP in FY25, driven by a widening direct tax base where income tax returns jumped to 9.2 crore.Furthermore, Gross GST collections for April-December 2025 reached ₹17.4 lakh crore.
In the banking sector, asset quality has reached historic highs.Gross Non-Performing Assets (GNPAs) fell to a multi-decadal low of 2.2 per cent in September 2025, while net NPAs hit a record low of 0.5 per cent.Outstanding credit growth also accelerated to 14.5 per cent by late 2025.
India’s share in global merchandise exports has nearly doubled from 1 per cent in 2005 to 1.8 per cent in 2024.Services exports reached a milestone of USD 387.6 billion in FY25, growing by 13.6 per cent.Additionally, India remains the top recipient of global remittances, securing USD 135.4 billion in FY25.The nation’s foreign exchange reserves climbed to USD 701.4 billion as of January 2026, enough to cover 11 months of imports.
The agriculture sector remains a cornerstone of the economy, with foodgrain production estimated at 3577.3 lakh metric tonnes for 2024-25.Notably, horticulture production has surpassed foodgrains, reaching 362.08 million tonnes.Financial inclusion has expanded via the PM Jan Dhan Yojana, with 55.02 crore accounts opened as of March 2025, primarily in rural and semi-urban areas.Under the PM-KISAN scheme, over ₹4.09 lakh crore has been distributed to farmers since its launch.
Connectivity has seen a massive transformation, with high-speed road corridors increasing ten-fold since 2014 to reach 5,364 km.The rail network added 3,500 km in FY26 alone, achieving 99.1 per cent electrification.In aviation, India is now the world’s third-largest domestic market, boasting 164 airports.Digital reach has similarly peaked, with 5G services available in 99.9 per cent of districts.
The Multidimensional Poverty Index shows a dramatic decline in poverty from 55.3 per cent in 2005-06 to 11.28 per cent in 2022-23.Education infrastructure has also expanded, now featuring 23 IITs, 21 IIMs, and 20 AIIMS.Moving forward, the survey highlights a "disciplined Swadeshi" strategy to build strategic resilience and integrate India more deeply into global supply chains.
