India's economy set for 7.4% growth in FY26, says Economic Survey
India's latest Economic Survey, presented by Finance Minister Nirmala Sitharaman, expects the country's economy to grow by 7.4% in FY26—up from the previous survey's 6.3%-6.8%.
The survey, led by Chief Economic Adviser V Anantha Nageswaran, also sees growth staying strong in FY27.
What's driving the optimism?
Big reforms like GST tweaks, simpler income taxes (coming April 2026), easier FDI rules, and bankruptcy fixes are fueling this upbeat forecast.
Government spending on infrastructure is way up too—from ₹5.93 trillion in FY22 to ₹11.21 trillion in FY26—while the survey urges the private sector to accelerate investment and job creation in the face of AI and technological disruption.
Inflation and future focus
The RBI projects CPI inflation at 2% for the year—well below its usual target—mainly thanks to lower food prices.
Still, overall money growth (nominal GDP) is a bit behind at 8%.
The survey also highlights goals like boosting manufacturing diversity and making India more self-reliant in tech like semiconductors.