Economic Survey pegs India’s potential growth between 6.8-7.2 pc in FY27, outlook positive despite global risks

NEW DELHI: India’s economic growth remains resilient with strong domestic demand acting as the main anchor, even as the global environment continues to remain fragile, according to the Economic Survey of India tabled in Parliament on Thursday.

Taking an optimistic view of the economy, the Economic Survey estimated India’s potential growth at around 7 per cent. It also projected that India’s GDP growth in FY27 is likely to remain in the range of 6.8 per cent to 7.2 per cent, reflecting the economy’s medium-term strength supported by reforms and macroeconomic stability.

The Survey noted that while global economic conditions remain uncertain and fragile, India’s overall outlook continues to be positive. It highlighted that India’s growth is holding up better than expected compared to many other economies, although risks remain elevated due to global uncertainties.

The Economic Survey presents a comprehensive review of India’s economic performance and outlines key focus areas including growth trends, fiscal developments, sectoral performance, and policy priorities, providing the basis for informed budgetary decisions.#BudgetSession pic.twitter.com/rdPTc45Wd8

— संसदीय कार्य मंत्रालय M/O Parliamentary Affairs (@mpa_india) January 27, 2026

According to the Economic Survey, India’s external stability continues to be a key strength for the economy. This has helped the country remain relatively insulated from global volatility. However, the report cautioned that the impact of global shocks could surface with a lag, and policymakers need to remain vigilant.

The Survey emphasised that domestic demand continues to be the primary driver of economic growth. Strong consumption demand, particularly in urban areas, has supported overall economic activity. It noted that tax rationalisation measures undertaken in recent years have contributed to an improvement in urban consumption, providing further momentum to growth.

The Economic Survey also highlighted that India’s medium-term growth trajectory remains strong, supported by structural reforms and sustained macroeconomic stability. These factors have helped improve economic fundamentals and enhance the economy’s ability to withstand external shocks.

While acknowledging that growth has been better than initially expected, the Survey pointed out that risks to growth remain elevated due to a fragile global environment. It stated that geopolitical tensions, global financial conditions, and external economic uncertainties could pose challenges going forward.

Despite these risks, the Survey maintained a positive outlook for India, citing strong domestic fundamentals, stable external indicators, and ongoing reforms as key factors supporting growth. Overall, the Economic Survey presented a balanced assessment, recognising both the strengths and risks facing the economy. (ANI)