Economic Survey 2026: A Comprehensive Preview of India's Economic Landscape
As the nation eagerly anticipates the presentation of the Union Budget 2026-27, all eyes are firmly fixed on the forthcoming release of the Economic Survey. This pivotal document, crafted by the Department of Economic Affairs under the Ministry of Finance, serves as a critical assessment of the current financial year and sets the stage for future fiscal policy. Scheduled for tabling before both houses of Parliament—the Lok Sabha and the Rajya Sabha—on Thursday, 28 January 2026, at 11 am IST, the survey will provide invaluable insights just days before Finance Minister Nirmala Sitharaman announces the Union Budget on Sunday, 1 February 2026.
Reflecting on Last Year's Economic Survey: 10 Crucial Takeaways
To better understand the context and potential direction of the upcoming report, let us revisit the key highlights from the Economic Survey 2024-25, which was released one day prior to last year's budget announcement.
- GDP Projection and Growth Outlook: The previous survey projected India's real GDP growth at 6.4% for FY2024-25, driven by robust performance in agriculture and services sectors alongside improving rural demand. It emphasized the need for structural reforms to bolster medium-term growth potential amidst global uncertainties.
- Agricultural and Industrial Performance: India's agriculture sector demonstrated remarkable resilience, operating well above trend levels with an expected growth rebound to 3.8% in FY25. The industrial sector was estimated to grow at 6.2%, though manufacturing faced challenges from slowing global demand.
- Inflation Trends: Retail headline inflation showed a softening trend, declining from 5.4% in FY24 to 4.9% during the April-December period of FY2024-25. This improvement was attributed to effective government initiatives and monetary policy measures, with rural demand and stable macroeconomic conditions providing further support.
- Foreign Direct Investment (FDI) Inflows: Gross FDI inflows surged to $55.6 billion in the first eight months of FY2024-25, marking a significant increase from $47.2 billion in the corresponding period of FY24. The survey noted higher repatriation rates impacting net inflows.
- Deregulation for Viksit Bharat: Emphasizing deregulation as a cornerstone for achieving the Viksit Bharat vision, the survey highlighted its critical importance for MSME growth. It underscored that sustained economic growth of around 8% is essential for India to realize its long-term aspirations.
- Infrastructure Investment Needs: The survey pointed out that India's growth ambitions necessitate substantial infrastructure investments. While public capital remains vital, enhanced private sector participation through improved project management and conflict resolution mechanisms is crucial.
- Declining Unemployment Rates: Positive trends in labour force participation and worker-to-population ratios contributed to a notable decline in unemployment rates, as per the Periodic Labour Force Survey data.
- AI Adoption and Workforce Implications: The adoption of artificial intelligence presents both opportunities and challenges for labour markets. The survey advocated for significant investments in education and skilling to harness India's demographic dividend effectively.
- Renewable Energy Challenges: India faces hurdles in renewable energy deployment due to limitations in storage technology and access to critical minerals. The survey highlighted the increasing importance of climate adaptation strategies, with related expenditures rising from 3.7% to 5.6% of GDP between FY16 and FY22.
- Skilling and Job Creation: Prioritizing reskilling, upskilling, and new-skilling initiatives is essential for creating quality jobs and aligning the workforce with global demands. The survey also emphasized that reducing business costs through deregulation could spur employment growth.
As the nation awaits the Economic Survey 2026, these insights from the previous year provide a foundational understanding of the economic priorities and challenges that will likely shape the upcoming report and the subsequent budget announcements.
