Economic Survey reflects achievements of central government, reports say present financial year will see growth of 7.4 percent

NEW DELHI: The economic survey reports say India to grow at 7.4 percent in the present fiscal year. The report also projects growth between 6.8 percent and 7.2 percent in 2026-27.

The government has succeeded in gradually reducing the fiscal deficit. The fiscal deficit, which was 9.2 percent in 2020-21, has come down to 4.8 percent in 2024-25. Non-performing assets of banks have come down significantly. Capital expenditure has risen to four percent of GDP. This can be seen as an indication of the strength of the economic sector. Domestic demand and private consumption will drive growth in the coming years. The services sector will be the main contributor in the distribution sector.

Despite the imposition of high tariffs by the United States, India's merchandise exports grew by 2.4 percent and services exports by 6.5 percent. As of January 2026, India's foreign exchange reserves are equal to the value of 11 months of imports. The current account deficit is also at a moderate level of 0.8 percent of GDP. There is progress in trade deal talks with the US.

The budget estimates the fiscal deficit to be 4.4 percent in the 2025-26 financial year, up from 4.8 percent in 2024-25. The report also states that capital expenditure on infrastructure development has increased from 1.7 percent before the pandemic to 4 percent in 2024-25.