Economic Survey Recap: India’s Ministry of Finance is set to release its key document, the Economic Survey, as all eyes in the country now begin the wait for the document to be tabled at the Union Parliament. The Economic Survey will provide a detailed analysis of the current financial year ending 2025-26 ahead of the government’s Union Budget 2026-27 announcement.
On Thursday, 28 January 2026, the Finance Ministry’s Department of Economic Affairs-made Economic Survey will be tabled before both the houses of the Union parliament, i.e., the Lok Sabha and the Rajya Sabha, at 11 am (IST).
Finance Minister Nirmala Sitharaman will announce the Union Budget 2026-27 on Sunday, 1 February 2026. Let’s take a look at last year’s economic survey, which was released one day before the Union Budget announcement.
Here are 10 things you need to know
1. GDP Projection: Last year, in the Economic Survey 2024-25, the Ministry of Finance highlighted that India’s real gross domestic product (GDP) is expected to grow by 6.4% in the financial year ending 2024-25.
“As per the first advance estimates of national accounts, India’s real GDP is estimated to grow by 6.4% in FY25,” according to the survey, citing rising growth in agriculture and services with improving rural demand.
The report also mentioned that the outlook for the financial year ending 2026 was “balanced” amid the growth headwinds due to the elevated geopolitical and trade uncertainties and commodity price shocks.
“Overall, India will need to improve its global competitiveness through grassroots-level structural reforms and deregulation to reinforce its medium-term growth potential,” according to the Economic Survey 2024-25.
2. Strong agriculture: Last year’s economic survey also highlighted that India’s agriculture remains strong and consistently operating well above trend levels. The survey also noted that the industrial sector is estimated to grow at a rate of 6.2% in FY2025.
“The agriculture sector is expected to rebound to a growth of 3.8% in FY25. The industrial sector is estimated to grow by 6.2% in FY25,” said the survey.
The Economic Survey also mentioned that the services sector is witnessing robust growth in recent years, which has lifted the sector to its close trend levels.
“However, the overall growth was tempered by moderation in industrial growth, particularly in manufacturing, which faced challenges from slowing global demand and supply chain disruptions,” according to the Economic Survey.
3. Inflation: The survey also mentioned that the retail headline inflation in the Indian economy softened from 5.4% in FY24 to 4.9% in the April to December period in the financial year ending 2024-25 due to several government initiatives and monetary policy measures.
“Rural demand backed by a rebound in agricultural production, an anticipated easing of food inflation and a stable macro-economic environment provide an upside to near-term growth,” according to the report.
The survey also mentioned that the inflation rates across economies have noted a downward trend due to the tighter monetary policies of the central banks around the world and higher economic uncertainty.
“Inflation rates across economies have trended downward steadily, approaching central bank target levels. This has been the result of tighter monetary policy regimes across the globe and supply chains adapting to higher levels of economic uncertainty,” as per the Economic Survey.
4. FDI inflows: India’s gross foreign direct investment (FDI) rose to $55.6 billion in the first eight months of the financial year ending 2024-25, compared to $47.2 billion in the first eight months of FY24.
“Gross FDI inflows during April–November in FY25 are higher than the levels witnessed in the corresponding period of any previous years except FY21. Net FDI inflow declined over this period, primarily on account of the uptick in repatriation, which is higher by 33.2% YoY after a growth of 51.5% in FY24,” according to the Economic Survey 2024-25.
5. Deregulation: Last year’s economic survey also focused on the “deregulation” factor, which is expected to serve as a key for the country’s “Viksit Bharat” goal.
“To realise its economic aspirations of becoming Viksit Bharat by the time of the centenary of independence, India needs to achieve a growth rate of around 8% at constant prices, on average, for about a decade or two,” as per the survey.
The report also highlighted how critical deregulation is for the MSME growth than large enterprises in the Indian economy.
“Large enterprises usually find a way around compliance. Management and financial bandwidth are limited for smaller enterprises. Therefore, deregulation is a policy agenda for small businesses,” as per the survey.
6. Infrastructure: The Economic Survey also underscored that India’s growth plans for the next decade require a large investment in infrastructure.
Although the government has recognised the importance of continuing the pace of infrastructure building and the increasing need to promote sustainable construction practices, the survey mentioned how “public capital alone cannot meet the demands of upgrading the country’s infrastructure.”
The report mentioned that the country needs to ensure that the rising private sector participation in infrastructure via improved capacity of projects, contract management, conflict resolution and project closure, among other things.
7. Unemployment drop: Last year’s survey mentioned that the unemployment rate in the Indian economy has declined over time amid the positive trends in labour force participation and the worker-to-population ratio.
“According to the Periodic Labour Force Survey, the unemployment rate has significantly declined over time, alongside positive trends in labour force participation and the worker population ratio,” said the report.
8. AI adoption: The survey said that the adoption of artificial intelligence (AI) has presented the world with both opportunities and significant challenges for labour markets.
“These challenges, along with AI’s experimental nature, create a window for policymakers to act. India’s demographic advantage and diverse economic landscape position it uniquely to benefit from AI,” said last year’s Economic Survey.
But the survey also mentioned that in order to achieve these benefits, the country needs significant investments in education and workforce skilling, supported by enabling, insuring, and stewarding institutions for AI.
“These mechanisms can help workers adapt to changing demands while providing essential safety nets,” it said.
9. Challenge for renewable energy: The Economic Survey mentioned that India faces challenges in deploying renewable energy due to the lack of storage technology and access to critical minerals.
“It faces challenges in deploying renewable energy, particularly due to a lack of storage technology and access to minerals. Given India’s vulnerability to climate change, a strong adaptation strategy is essential; the increase in adaptation expenditures from 3.7% to 5.6% of GDP between FY16 and FY22 indicates the prominence adaptation and building resilience play in the development strategy,” said the survey.
10. Importance of Skilling: In efforts to fully capitalise on the Indian demographic, the creation of quality jobs that offer sustainable livelihoods is essential, according to the survey report.
“Further, by prioritising reskilling, upskilling, and new-skilling, the government is aiming to align the workforce with global demands, enhancing both domestic and international employability. Simplifying compliances, promoting labour flexibility, and strengthening workers’ welfare are vital for driving sustainable job growth,” it said.
The survey also mentioned that lowering the fixed costs of doing business through deregulation will create room for enterprises to hire more in turn increasing the overall employment of the country.
