India, Jan. 29 -- Domestic demand in India has grown significantly, but this trend may slow. According to the Economic Survey 2025-26, the Indian economy is currently in its most consumption-driven phase since 2012. In fiscal year (FY) 2025-26, private final consumption expenditure (PFCE) accounted for 61.5 per cent of gross domestic product (GDP), the highest level since FY 2011-12.

The Economic Survey, tabled in Parliament by Union Minister of Finance, Nirmala Sitharaman on January 29, 2026, stated that domestic demand remains a strong driver of economic growth in FY 2026. Private final consumption expenditure increased by approximately 7 per cent in FY 2026. Its share of the country's total economy (GDP) reached 61.5 per cent, the hig...