NEW DELHI, Jan 29 (GDM) — India’s economy is projected to grow between 6.8 and 7.2 percent in the 2026–27 financial year, slightly slower than the 7.4 percent estimated for the current fiscal, according to the government’s Economic Survey tabled in parliament on Thursday.
Presenting the pre-Budget document in the Lok Sabha, the government said the outlook pointed to steady growth despite global uncertainty, calling for “caution, but not pessimism.”
“The outlook, therefore, is one of steady growth amid global uncertainty,” the survey said, noting that India remains among the fastest-growing major economies globally.
The projection factors in the cumulative impact of structural reforms undertaken in recent years, which the survey said have lifted India’s medium-term growth potential closer to 7 percent. These include measures in infrastructure spending, manufacturing incentives, financial sector stability and digitalisation.
The survey underlined that domestic demand continues to be the primary growth driver, supported by resilient consumption, public capital expenditure and a stable banking system.
“With domestic drivers playing a dominant role and macroeconomic stability well anchored, the balance of risks around growth remains broadly even,” it said.
However, the document flagged external risks, including geopolitical tensions, volatile commodity prices and slower global growth, which could weigh on exports and investment sentiment.
The Economic Survey traditionally sets the tone for the Union Budget, which Finance Minister Nirmala Sitharaman is scheduled to present on Saturday.