Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025–26 in the Lok Sabha on Thursday, which projected GDP growth of 6.8–7.2% for FY27.
The forecast marks a slowdown from the 7.4% growth estimated for the current financial year, which exceeded last year’s Economic Survey forecast range of 6.3% to 6.8%.
The rupee was a casualty of drying foreign capital flows and underperformed in 2025, the Economic Survey said. It does not hurt to have an undervalued rupee as it offsets, to some extent, impact of higher US tariffs on Indian goods, the survey added.
It also added that ongoing negotiations for a trade agreement with US is expected to conclude during FY 27, a development that could help reduce uncertainty on the external front.
Meanwhile, Lok Sabha proceedings were adjourned for the day after the survey was tabled. The House will reconvene on February 1, when the finance minister presents the Union Budget for the 2026–27 financial year.
India’s pharmaceutical industry is shifting from a volume-driven to a value-driven growth model, with greater emphasis on complex generics, biosimilars and innovation, the Economic Survey 2025–26 said.
The sector is the world’s third-largest by volume, meeting around 20% of global generics demand and exporting to 191 countries in FY25. Annual turnover stood at Rs 4.72 lakh crore in FY25, with exports growing at a compound annual growth rate of 7% over the past decade, the survey noted.
More than half of India’s pharmaceutical exports are directed to highly regulated markets such as the US and Europe. By value, India ranks 11th globally in pharmaceutical exports, with a 3% share. Medical devices exports have also expanded, rising from $2.5 billion in FY21 to $4.1 billion in FY25, though the survey flagged significant scope for further growth.
To move up the value chain, the industry is increasingly focusing on complex generics, biosimilars and innovation.
The survey said scaling up the medical devices sector will require reducing import dependence through advanced manufacturing technologies such as artificial intelligence and 3D printing, along with streamlined global certification processes.
Beyond generics, India remains a global leader in low-cost vaccine supply and is emerging as a competitive producer of high-end medical equipment, including MRI and CT scanners, cardiac stents and ventilators.
The domestic steel sector faces challenges linked to international price disparity and raw material security, the Economic Survey said on Thursday.
Describing steel as the backbone of industrialisation and infrastructure, the survey said the sector has helped secure India’s position as the world’s second-largest crude steel producer.
It noted that the industry has undergone a major transformation over the past five years, driven largely by strong domestic demand from the construction and manufacturing sectors.
“However, the sector faces challenges related to international price disparity and raw material security. India was also a net importer of steel during FY26 (April–October), primarily due to low international prices, which resulted in lower margins on exports and cheaper imports,” the survey stated.
While India is largely self-sufficient in iron ore, the industry remains critically dependent on imported coking coal. To mitigate global supply risks, the Ministry of Coal launched Mission Coking Coal in 2022, aiming to raise domestic raw coking coal production to 140 million tonnes by 2030.
A production-linked incentive (PLI) scheme for specialty steel, with an outlay of Rs 6,322 crore, was introduced in 2021 to sustain growth and promote self-reliance. As of October 2025, cumulative investment under the scheme stood at Rs 23,022 crore, with specialty steel production reaching 2.34 million tonnes. During April–October 2025–26, crude steel production rose 11.7%, finished steel output increased 10.8%, and consumption grew 7.8% year-on-year.
Rising automobile exports reflect the growing acceptance of India-manufactured vehicles across global markets, according to the Economic Survey 2025–26.
The automobile industry has seen strong export growth, with more than 5.3 million vehicles shipped across passenger, commercial, two-wheeler and three-wheeler segments in FY25, alongside double-digit growth in the first half of 2025–26, the survey noted.
A robust recovery in demand has driven both production and sales growth in the post-pandemic period. Overall, the industry recorded nearly 33% growth in production over the past decade, from FY15 to FY25.
Supported by a vast manufacturing and auto component ecosystem, the automobile sector provides direct and indirect employment to over 30 million people and accounts for nearly 15% of the country’s GST collections.
The survey described the automotive industry as a key driver of economic growth, with India established as the world’s largest market for two-wheelers and three-wheelers, and the third-largest globally for passenger and commercial vehicles.
Government initiatives, including production-linked incentive schemes for automobiles, auto components and advanced chemistry cell battery storage, along with the PM E-DRIVE and PM e-Bus Sewa schemes, have boosted electric vehicle registrations.
The Scheme to Promote Manufacturing of Electric Passenger Cars in India, notified in March 2024, has also supported sectoral growth.
The Rajya Sabha was adjourned for the day after tabling of the Economic Survey 2025-26 by Union Finance Minister Nirmala Sitharaman on Thursday.
The Economic Survey is an annual review of the country's economy. It is presented by the government ahead of the Union Budget. The Union Budget for 2026-27 will be presented by the Finance Minister on Sunday.
Sitharaman tabled a copy (in English and Hindi) of the Economic Survey, 2025-26, along with a statistical appendix in the Upper House. Soon after, Rajya Sabha chairman CP Radhakrishnan adjourned the House for the day.
Ongoing negotiations for a trade agreement with the US are expected to conclude during the year, a development that could help reduce uncertainty on the external front, according to Economic Survey 2025-26.
For India, it said, the global conditions translate into external uncertainties rather than immediate macroeconomic stress.
Slower growth in key trading partners, tariff-induced disruptions to trade and volatility in capital flows could intermittently weigh on exports and investor sentiment, the Survey said.
"At the same time, ongoing trade negotiations with the United States are expected to conclude during the year, which could help reduce uncertainty on the external front," it said.
India and the US are negotiating a bilateral trade agreement since March last year. So far, six rounds of negotiations have been held.
Talks are going slow as the Trump-administration has imposed a steep 50 per cent tariffs on Indian goods from August last year.
India’s Economic Survey for 2025-26 painted a cautiously optimistic picture, projecting GDP growth of 6.8–7.2% in 2026–27.
The government is prioritising steady, investment-led expansion over short-term stimulus, backed by strong domestic demand, rising public capital expenditure, and improving private investment sentiment.
Macroeconomic stability has largely returned after global shocks, with inflation moderating and fiscal consolidation on track.
Public investment in infrastructure — including roads, railways, ports, power, and urban development — is expected to crowd in private investment and boost job creation.
Private consumption remains resilient, supported by rising incomes and formal employment, while manufacturing is set to play a bigger role through incentives, ease-of-doing-business reforms, and deeper integration into global value chains.
Services, particularly IT, finance, tourism, and professional services, continue to drive growth and foreign exchange earnings.
The survey highlighted labour market improvements, stressing skilling, reskilling, and upskilling to meet evolving economic demands.
On the external front, India’s foreign exchange reserves remain comfortable, with a manageable current account deficit supported by strong services exports and remittances, even as merchandise trade faces global headwinds.
GDP growth for 2026–27 is projected at 6.8–7.2%
Rupee was a casualty of drying foreign capital flows and underperformed in 2025
Free trade agreement with Europe will strengthen India’s manufacturing competitiveness, export resilience, and strategic capacity
India needs to prioritise domestic growth amid an uncertain global environment, with greater emphasis on buffers and liquidity.
Realising the potential of trade agreements requires India to produce competitively, the survey notes, referring to a string of FTAs signed
GST rejig and reforms have turned global uncertainty into opportunity, while 2026–27 is expected to be a year of adjustment as the economy adapts to these changes
Correction in overly optimistic asset valuations will happen if AI boom fails to deliver the anticipated productivity gains
Ongoing negotiations for a trade agreement with US is expected to conclude during the year, a development that could help reduce uncertainty on the external front
Does not hurt to have an undervalued rupee as it offsets, to some extent, impact of higher US tariffs on Indian goods
India’s Economic Survey for 2025–26 projects GDP growth of between 6.8% and 7.2%, supported by strong macroeconomic fundamentals and a series of regulatory reforms.
The forecast marks a slowdown from the 7.4% growth projected for the current financial year. The government had projected growth of 7.4% for the current fiscal year, exceeding last year’s Economic Survey forecast range of 6.3% to 6.8%.
"The outlook, therefore, is one of steady growth amid global uncertainty, requiring caution, but not pessimism," said the pre-Budget document tabled in the Lok Sabha.
The rupee was a casualty of drying foreign capital flows and underperformed in 2025, the Economic Survey said.
Lok Sabha proceedings were adjourned for the day after Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025–26. The House will reconvene on February 1, when the finance minister presents the Union Budget for the 2026–27 financial year.
Union Finance Minister Nirmala Sitharaman presented the Economic Survey 2025-26 in the Lok Sabha on Thursday.
The Economic Survey is an annual document presented by the government ahead of the Union Budget to review the state of the country's economy. It also provides an overview of the economy's short-to-medium-term prospects.
The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance under the supervision of the chief economic adviser.
The first Economic Survey was presented in 1950-51. At that time, it used to be a part of the budget documents. In the 1960s, it was separated from the Union Budget and tabled ahead of the Budget presentation.
The Union Budget for 2026-27 will be presented by the finance minister on Sunday. This will be the ninth consecutive budget to be presented by Sitharaman, a historic first by a woman finance minister in India.
The Congress hit out at Prime Minister Narendra Modi over his remarks on the Budget session, saying he delivers his "usual hypocrisy-laden message to the nation" before the beginning of each session and "today's performance is part of this series."
Congress general secretary in-charge Jairam Ramesh said, "He (PM) will not convene and chair all-party meetings to take the opposition into confidence on national issues."
He will suddenly have Bills introduced at the last minute and bulldozed through Parliament without the necessary legislative scrutiny, Ramesh claimed, adding that Modi would not sit in Parliament and respond to the concerns of opposition leaders, and will instead make election rally speeches in both Houses.
"Before the beginning of each session, he will give his usual hypocrisy-laden 'desh ke naam sandesh' with Parliament as his backdrop. Today's performance is part of this series," the senior Congress leader said.
Prime Minister Narendra Modi said the country had boarded the “Reform Express” and is coming out of long-term pending problems and working towards long-term solutions. An India full of confidence has emerged as a ray of hope for the world, he added.
"This government has been identified with reform, perform, and transform. And now we have boarded the reform express... The country is now moving beyond long-term pending problems and is firmly stepping onto the path of long-term solutions," Modi said, speaking outside Parliament House.
The time has come to find solutions and not create hurdles, he said, adding his government is not confined to just files but ensuring the last-mile delivery of welfare schemes to the people.
"Our priority is always human-centric while taking steps for all-round development of the country," he told reporters in Parliament House complex in his customary briefing at the beginning of the Budget session.
Prime Minister Narendra Modi on Thursday said the free trade pact with the European Union is for an ambitious India and urged manufacturers to benefit from new markets opening for them.
"At the very beginning of this quarter, the India–European Union Free Trade Agreement reflects how bright the coming direction is and how promising the future of India's youth is. This is free trade for an ambitious India, for aspirational youth, and for a self-reliant India. I am confident that Indian manufacturers, in particular, will use this opportunity to enhance their capabilities," Modi said, speaking outside Parliament House.
Ahead of Day 2 of the Budget Session, Prime Minister Narendra Modi hailed Wednesday’s President’s Address as an expression of the trust of 140 crore Indians.
“The President’s Address yesterday was the expression of the trust of 140 crore Indians, an account of their capability and of the sketch of their aspirations, especially of the youth. For all MPs, the President also said several things to guide them. At the beginning of the session and 2026, the expectations expressed by the President. I am confident that all MPs took this seriously,” Modi said, speaking outside Parliament House.
Union Finance Minister Nirmala Sitharaman is set to table the Economic Survey 2025-26 in the Lok Sabha on Thursday.
The Economic Survey document, prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance and formulated under the supervision of the chief economic adviser, provides insights into the state of the economy and various indicators for 2025-26 (April-March), as well as an outlook for the next fiscal.
Further, Union Minister of State for Civil Aviation Murlidhar Mohol will table documents related to the Airports Economic Regulatory Authority of India (AERA). In addition, a statement reviewing the working of the Airports Economic Regulatory Authority of India, New Delhi, for the year 2024-25 will be presented before the House.
As per the agenda, the House will first take up Question Hour, with questions listed separately to be asked and answered by the concerned Ministers. This will be followed by the laying of papers on the Table by members of the Union Council of Ministers.
A key item on the day's agenda is the formal laying of eight Bills that have been passed by both Houses of Parliament during the Sixth Session of the 18th Lok Sabha and have subsequently received the President's assent. The Bills will be laid on the table by the Secretary General of the Lok Sabha.
The House will also witness the presentation of the 13th Report of the Business Advisory Committee. The report will be presented by Kiren Rijiju and Kodikunnil Suresh, as listed in the agenda.
Additionally, the Lok Sabha will take up Matters under Rule 377, a parliamentary provision that allows Members of Parliament to raise issues of urgent public importance.
The Budget Session of Parliament commenced a day earlier.
The Budget Session will span 30 sittings over 65 days, concluding on April 2, with a recess from February 13 to March 9 for scrutiny of Demands for Grants by Standing Committees.
The second day of the 2026 Budget Session will see Union Finance Minister Nirmala Sitharaman table the Economic Survey in the Lok Sabha, offering an assessment of the economy and key indicators for 2025–26, along with an outlook for the next financial year.
Meanwhile, Minister of State for Civil Aviation Murlidhar Mohol will table documents related to the Airports Economic Regulatory Authority of India (AERA). A statement reviewing the functioning of AERA for 2024–25 will also be presented to the House.
A key item on the agenda is the formal laying of eight Bills passed by both Houses during the Sixth Session of the 18th Lok Sabha and subsequently assented to by the President. The Bills will be laid on the table by the Secretary General of the Lok Sabha.
The Lower House will also see the presentation of the 13th Report of the Business Advisory Committee by Union Minister Kiren Rijiju and Congress MP K Suresh, as listed in the agenda.