Economic Survey 2025-26

The Economic Survey 2025-26 presents an analysis of India's current economic conditions, highlighting both areas of strength and concern.

Macroeconomic Front

• Healthy growth and muted inflation.
• Strong corporate and bank balance sheets.
• Rationalized GST rates, new trade deals, and reforms.
• Challenges: 
  • Low household consumption.
  • Limited revival signs in private investment.
  • Sluggish merchandise exports.
• Paradox of strong performance with foreign investors withdrawing and a depreciating rupee.

Currency and Investor Concerns

• Rupee at approximately 92 against the US dollar.
• Currency valuation not reflecting strong economic fundamentals but impacting investor sentiment.
• Need for generating investor interest and export earnings in foreign currency.

Fiscal Populism

• State governments' unconditional cash transfers total Rs 1.5 lakh crore in 2025-26.
• Committed expenditures consume 62% of states' revenue receipts, impacting fiscal space for productive spending.

Growth Projections

• Projected economic growth of 6.8 to 7.2% in 2026-27.
• Challenge of sustaining 7% growth in a volatile global environment.

The Survey provides insights into the government's economic strategy and raises questions about their reflection in the forthcoming Union Budget.