The Economic Survey 2026, presented in Parliament ahead of the Union Budget 2026–27, offers a detailed assessment of India’s economic performance over the past year and outlines key challenges for the period ahead. The Survey indicates that the economy remains resilient, supported by strong domestic demand, steady investment, and controlled inflation, even as global uncertainties continue.
India has maintained growth faster than most major economies, driven largely by consumer spending and sustained investment across sectors. Economists note that the economy has stayed on a stable path despite geopolitical tensions, weaker global trade, and financial volatility in several regions.
A major highlight of the Survey is the sharp fall in inflation, which has declined to very low levels. Lower price pressures have helped improve household purchasing power and supported consumption. This positions India favourably at a time when many economies are still grappling with high inflation.
Prime Minister Narendra Modi said the Survey reflects India’s economic progress despite a challenging global environment. He highlighted strong fundamentals such as infrastructure development, innovation, and entrepreneurship as key drivers of long-term growth.
The Survey also draws attention to structural challenges, particularly in the labour market. The Chief Economic Adviser (CEA) has flagged significant skill gaps and structural risks emerging in the AI-driven economy. Limited access to formal vocational training and slow skill adaptation could constrain job creation and productivity if not addressed in time. The Survey stresses the need to align education and skilling systems with evolving industry and technology requirements.
Manufacturing growth and the creation of skilled employment are identified as crucial for sustaining high growth rates alongside the expanding services sector. Strengthening industrial capacity and improving workforce readiness are seen as essential policy priorities.
Overall, the Economic Survey paints a picture of a stable and resilient economy, underpinned by low inflation, strong domestic demand, and investment momentum. At the same time, it underlines the urgency of tackling skills shortages and preparing the workforce for technological change.
The Survey sets the analytical backdrop for the Finance Minister’s Budget 2026–27, helping policymakers, businesses, and investors evaluate both economic strengths and emerging risks before new policy measures and spending proposals are announced.
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