29-Jan-2026 17:32

The Economic Survey has estimated India's FY26 GDP growth at 7.4%. India's medium-term growth potential is around 7%. The FY27 GDP growth is seen at 6.8-7.2%. The Survey terms FY27 as a year of adjustment, where firms and households recalibrate amid evolving global conditions. Despite international volatility, domestic demand and investment are expected to provide a steady foundation for economic activity. The Survey points out that the domestic demand continues to underpin economic growth in FY26. According to the First Advanced Estimate, the share of final private consumption expenditure (PFCE) in GDP rose to 61.5 per cent in FY26. This strength in consumption reflects a supportive macroeconomic environment, characterised by low inflation, stable employment conditions, and rising real purchasing power. Moreover, steady rural consumption, bolstered by strong agricultural performance, and the gradual improvement in urban consumption, aided by the rationalisation of direct and indirect taxes, reaffirm that the momentum in consumption demand is broad-based.

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