Overall State of the Economy

• India remained the fastest-growing major economy for the fourth consecutive year.
• FY26 real GDP growth estimated at 7.4%; GVA growth at 7.3%.
• Potential growth assessed at around 7%; FY27 growth projected at 6.8–7.2%.

Consumption and Investment

• Private Final Consumption Expenditure (PFCE) grew by 7%, reaching 61.5% of GDP, the highest since 2012.
• Rural consumption improved due to good agricultural performance; urban demand was supported by stable employment.
• Gross Fixed Capital Formation (GFCF) rose by 7.8%, remaining at 30% of GDP.

Fiscal Position

• Revenue receipts increased to 9.2% of GDP, reflecting improved tax buoyancy.
• Income-tax filers rose sharply, indicating greater formalisation.
• GST collections showed steady year-on-year growth.
• The government debt-GDP ratio declined by 7.1 percentage points since 2020.

Banking and Monetary Sector

• Gross NPAs declined to 2.2% and Net NPAs to 0.5%, a multi-decadal low.
• Bank credit growth remained strong at 14.5% (YoY).

Financial Inclusion and Capital Markets

• Over 55 crore Jan Dhan accounts opened, strengthening financial inclusion.
• The investor base crossed 12 crore, with rising women participation.
• GIFT City emerged as an important global financial hub.

External Sector

• Total exports reached a record USD 825.3 billion, led by services.
• India remained the largest recipient of global remittances.
• Forex reserves touched USD 701.4 billion, providing strong external stability.

Inflation

• Average CPI inflation declined to 1.7%, the lowest since the CPI series began.
• Moderation driven mainly by lower food and fuel prices.

Agriculture and Allied Activities

• Foodgrain production reached a record level.
• Horticulture output exceeded foodgrain production.
• Livestock and fisheries showed strong long-term growth.
• PM-KISAN and e-NAM strengthened farmer incomes and market access.

Services Sector

• Services contributed over 53% of GDP, the highest ever.
• India emerged as a leading global services exporter.
• The sector attracted over 80% of total FDI inflows.

Industry and Manufacturing

• Industry GVA grew steadily despite global slowdown pressures.
• Manufacturing GVA showed strong acceleration in FY26.
• PLI schemes boosted investment, output, and employment.
• Progress made under the India Semiconductor Mission.

Infrastructure and Connectivity

• Capital expenditure increased more than fourfold since FY18.
• Rapid expansion of highways, rail electrification, and airports.
• Power sector reforms improved DISCOM financial performance.

Social Sector and Employment

• School enrolment and GER improved significantly.
• Employment levels increased, supported by services and manufacturing.
• e-Shram portal enhanced coverage of unorganised workers.

Poverty Reduction and Rural Development

• Multidimensional poverty declined sharply over the last two decades.
• Social sector expenditure increased.
• SVAMITVA scheme improved rural property rights.

Source: Economic Survey