As per Economic Survey 2025-26, India’s GDP growth for FY26

Current Context: The Economic Survey 2025-26, tabled in Parliament on January 29, 2026 by Finance Minister Nirmala Sitharaman, projects India’s real GDP growth at 7.4% for FY26, making it the fastest-growing major economy for the fourth consecutive year.

• This growth is powered by a “double engine” of private consumption and investment, with PFCE rising to 61.5% of GDP, the highest since 2012, supported by low inflation at 1.7%.
• On the investment side, Gross Fixed Capital Formation touched 30% of GDP, with activity expanding by 7.8%, showing private sector revival alongside government capital spending.
• Sectoral performance was strong: services grew 9.1%, manufacturing 8.4%, and agriculture 3.1%, aided by a favorable monsoon.
• Fiscal health improved as banking GNPAs fell to a multi-decadal low of 2.2% in September 2025.
• Looking ahead, the Survey provides a “Goldilocks outlook,” projecting FY27 growth at 6.8–7.2% and long-term potential growth around 7%.

Question:

Q.1 According to the Economic Survey 2025–26, India’s projected real GDP growth for FY26 is:
a) 6.8%
b) 7.0%
c) 7.4%
d) 7.8%

Answer: c) The Survey projects 7.4% real GDP growth for FY26, making India the fastest-growing major economy.