Economic survey 2026: India's growth stays robust above 7%, inflation dips to 1.7%

New Delhi (The Uttam Hindu): Finance Minister Nirmala Sitharaman presented the Economic Survey 2026, the annual report of the country's economy, in Parliament today. Presented ahead of the General Budget on February 1st, this document paints a strong and stable picture of the Indian economy. Prepared by the Department of Economic Affairs of the Ministry of Finance, this report offers some comforting news for citizens on the growth and inflation fronts.

The pace of development will remain fast, inflation has crashed

According to the survey, the Indian economy has maintained its strength despite global challenges. The country's GDP growth rate is projected to be between 6.8 and 7.2 percent in the financial year 2026-27. Although this is slightly lower than the 7.4 percent projected for the current financial year, it is still the best among the world's major economies. The biggest relief for the common man is on the inflation front. Retail inflation (CPI) has registered a sharp decline and has come down to 1.7 percent in the year 2025-26, which is a sign of economic stability.

Historic jump in exports, service sector becomes a support

India has created new history on the trade front. The country's total exports have reached a record US$825.3 billion in the financial year 2025. Meanwhile, in the first half of the current financial year 2026 itself, the export figure has touched US$418.5 billion. The main reason for this growth is the excellent performance of the service sector and the strengthening of non-petroleum and non-gem jewellery exports. On the other hand, imports have also increased. Total imports increased by 7.4 percent to US$919.9 billion in the financial year 2025, resulting in a trade deficit of US$94.7 billion.

Self-reliance and reliance on foreign investment

In this pre-budget document, the government has placed special emphasis on self-reliance and strategic strength. The survey states that India must enhance domestic capabilities to withstand external shocks so that the country remains strategically secure. The situation regarding foreign direct investment (FDI) is also positive. FDI flows remain stable due to new projects and equity investments, although portfolio investment has seen some fluctuations due to global conditions. Overall, this survey will determine the direction of the budget to be presented on February 1st.