New Delhi, Jan. 29 -- India's economy is estimated to grow by 7.4 per cent in the fiscal year 2025-26, propelled by robust consumption and investment activity, according to the Economic Survey 2025-26 tabled by Finance Minister Nirmala Sitharaman in Parliament on Thursday.
This growth forecast underscores India's position as the fastest-growing major economy for the fourth consecutive year.
The Survey projects real GDP growth for FY27 at 6.8 to 7.2 percent, with India's potential growth rate estimated at around 7 percent. The dominant drivers of this growth are private final consumption expenditure, which has risen to 61.5 percent of GDP in FY26, and gross fixed capital formation, representing 30 percent of GDP. Consumption strength is su...