New Delhi: Union Finance Minister Nirmala Sitharaman on Thursday presented the Economic Survey 2025-26 in the Lok Sabha, setting the stage for the upcoming Union Budget for FY 2026-27. The annual report offers a comprehensive assessment of India’s economic health, trends, and policy recommendations, while projecting growth prospects for the short to medium term.
According to the survey, India’s economy is projected to expand at 6.8–7.2% in FY27, driven by structural reforms, regulatory improvements, and resilient domestic demand. The report highlights the importance of building strong economic buffers, enhancing liquidity, and focusing on domestic growth, particularly as global uncertainties loom large.
The survey pointed to the recently signed Free Trade Agreement (FTA) with the European Union as a key driver to boost manufacturing competitiveness, strengthen exports, and enhance strategic capacities. It also noted that the Indian rupee underperformed in 2025, highlighting challenges in maintaining currency stability amidst global volatility.
On domestic policy, the report praised the GST reforms, which it said turned global uncertainty into a growth opportunity for the economy. “FY27 is expected to be a year of adjustment as businesses and markets adapt to these changes,” the survey stated.
Addressing emerging technologies, the Economic Survey provided a cautionary note on Artificial Intelligence, stating that overly optimistic expectations in asset valuations may face corrections if the anticipated productivity gains do not materialize.
The report is compiled by the Economic Division of the Department of Economic Affairs under the guidance of the Chief Economic Adviser, and has been a key analytical tool for policymakers since its first presentation in 1950-51. While initially part of the Budget documents, it has been presented separately ahead of the Union Budget since the 1960s.
The Union Budget for 2026-27, which will be India’s ninth consecutive budget under Finance Minister Nirmala Sitharaman, is scheduled to be tabled on Sunday.
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