GDP expected to grow by 6.3-6.8% in FY26: Economic Survey

India is expected to record GDP growth of 6.3-6.8% in the financial year 2025-26, on the back of strong fundamentals, calibrated fiscal consolidation, and stable private consumption, said the Economic Survey tabled in Parliament on Friday.

The economic growth rate is estimated to slip to a four-year low of 6.4% in the current financial year.

"...the fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation and stable private consumption. On balance of these considerations, we expect that the growth in FY26 would be between 6.3 and 6.8%," the survey said.

The Economic Survey 2024-25, tabled by Finance Minister Nirmala Sitharaman in both houses of Parliament, said navigating global headwinds will require strategic and prudent policy management and reinforcing the domestic fundamentals.

The Budget 2024-25 laid out a multi-sectoral policy agenda for sustained growth push.

It further said that investment activity is expected to pick up, supported by higher public capex and improving business expectations.

For inflation, it said the risk from higher commodity prices seems limited in FY26. However, geopolitical tensions are still an issue, it added.

Food inflation is likely to soften in Q4 FY25 with seasonal easing of vegetable prices and kharif harvest arrivals.