Newsletter
Just two days before the 2026 Union Budget, Finance Minister Nirmala Sitharaman tabled the Economic Survey in the Lok Sabha, setting the tone for what’s coming next.
Breaking it down: the Survey expects the economy to grow 6.8% to 7.2% in FY27, riding on strong fundamentals and steady reforms.
That comes after the government’s estimate of 7.4% growth this year. Even global agencies are on the same page, the IMF sees 7.3%, and the World Bank expects 7.2% growth for the current year.
According to the survey, domestic demand is still doing the heavy lifting for growth. Rural spending is getting a boost from a strong farm season, and city demand is also picking up as tax tweaks have left people with more money in hand.
The rupee took a hit as foreign money slowed down, making it one of the weaker-performing currencies in 2025.
What about prices: the Survey says inflation is still under control, thanks to better supply and GST tweaks.
It may creep up a bit next year, but should stay within the RBI’s target range. Gold, silver, and copper prices are staying high, which could keep everyday inflation a little sticky. Over the next two years, the RBI and IMF expect inflation to move closer to the 4% comfort level.
And the Survey has a direct message for companies to invest more and create jobs, especially as generative AI and new tech shake up the job market.
It also hints that next year could be a transition year, as businesses and households adjust while demand and investment gradually pick up pace.
