FM Nirmala Sitharaman tables Economic Survey 2024-25: GDP growth forecast at 6.3-6.8% for FY26

Despite global uncertainties, the survey highlights strong domestic fundamentals that support growth. It highlights India's stable private consumption, a well-balanced external account, and ongoing fiscal consolidation as key factors shaping the economic trajectory.

Union Finance Minister Nirmala Sitharaman on Friday (January 31) tabled the Economic Survey 2024-25 in both the Lok Sabha and Rajya Sabha. Shortly after the tabling, proceedings in both houses were adjourned for the day. The survey projects India's GDP growth for the financial year 2025-26 (FY26) to range between 6.3% and 6.8%.

Despite global uncertainties, the survey highlights strong domestic fundamentals that support growth. It highlights India's stable private consumption, a well-balanced external account, and ongoing fiscal consolidation as key factors shaping the economic trajectory.

"Considering these factors, we expect the economy to grow between 6.3% and 6.8% in FY26," the survey states, which serves as a precursor to the Union Budget 2025-26.

What is the Economic Survey?

The Economic Survey is a critical annual document prepared by the Economic Division of the Department of Economic Affairs under the Ministry of Finance. It provides a comprehensive analysis of the state of the economy, key financial indicators, and policy directions for the upcoming fiscal year.

Since its inception in 1950-51, the survey was initially part of the Budget documents before being presented separately from the 1960s onward, traditionally a day before the Union Budget.

State of the economy: Recent growth trends

The survey also reflects on India's economic performance in the current fiscal year.

• July-September 2024 (Q2 FY25): India’s economy expanded by 5.4% in real terms, lower than the RBI's 7% projection.
• April-June 2024 (Q1 FY25): GDP growth also underperformed initial estimates.
• RBI's revised forecast: The Reserve Bank of India (RBI) recently lowered its GDP growth estimate for FY25 from 7.2% to 6.6%, while the government remains hopeful at 6.4% growth.
• Previous years' growth: India posted an 8.2% growth rate in FY24, maintaining its position as the fastest-growing major economy. The country registered 7.2% in FY23 and 8.7% in FY22.

Budget session 2025: Key details

The Budget Session of Parliament begins on January 31 and runs until April 4. The Union Budget for 2025-26 will be presented on February 1 at 11 AM in the Lok Sabha.