India’s Economic Survey suggests that the country’s economy is estimated to surge to 7.4% in FY26; along with that, India is anticipated to maintain a growth rate of around 7%. For FY27, GDP growth is determined to be between 6.8% and 7.2%.
The survey calls FY27 a year of adjustment, which means there are possibilities that households and businesses may make changes/adjustments to adapt to the changing global conditions. It also reveals that a strong domestic demand and investments are expected to keep the economy stable.
Meanwhile, the retail inflation (CPI) stepped down to 1.7% in FY25-26. The reason being largely due to a sharp decline in food prices. This includes vegetables, pulses, and spices. The low inflation, along with falling borrowing costs, has
Retail inflation (CPI) dropped to 1.7% in FY25-26, largely due to a sharp decline in food prices, including vegetables, pulses, and spices. This low inflation, combined with falling borrowing costs, has stronger buying power and higher spending within the country.
Chief Economic Advisor V. Anantha Nageswaran said to ANI, “If you look at the last few years in comparison to the pre-COVID average, real GDP growth pre-COVID was 6.4%, and in FY 25 it was 6.5%, and this year it is predicted to be 7.4%. Private final consumption expenditure growth is 7% for this year on top of 7.2% last year…We are achieving these high growth rates in consumption and investment spending amidst a very moderate inflation environment. This year, it is projected to be about 1.7% on average so far for the first nine months of the year…”
“…Employment conditions have improved since the launch of the Periodic Labour Force Survey (PLFS). The unemployment rate has declined from 6% then to 3.2% in 2023–24. The PLFS earlier followed a July-to-June cycle and is now shifting to a calendar-year-based cycle. Therefore, data for 2025 will be released sometime in March, which is why we are showing the 2023–24 data. Female labour force participation has increased by nearly 18 percentage points, and the unemployment rate in the first nine months of the year has steadily declined from 5.4% to 4.9% in the last quarter,” he said to PTI.
