Tuesday, February 18th, 2025

India to increase 6.3-6.8 percent in FY 26: Economic Survey


India’s economy is estimated to increase between 6.3 percent and 6.8 percent in FY 26, according to the Economic Survey 2024–25, was included in Parliament on Friday.

The survey states that the country’s economic basic things are strong, supported by a stable external account, fiscal consolidation and personal consumption.

It was noted that the government plans to strengthen long -term industrial development by focusing on research and development (R&D), micro, small and medium enterprises (MSMEs) and capital goods. The purpose of these measures is to increase productivity, innovation and global competition.

It said, “The basic principles of the domestic economy are strong, with a strong external account, fiscal consolidation and stable personal consumption were calibrated. On the balance of these ideas, we expect an increase in FY26 between 6.3 and 6.8 percent.

The survey stated that food inflation is expected to decrease in the Food Inflation Q4 FY25 due to the seasonal fall in vegetation prices and the advent of kharif harvest. A good rabi production is also expected to help maintain food prices in the first half of FY26. However, there is a risk for adverse weather conditions and inflation in rising international agricultural prices.

Meanwhile, global energy and commodity prices have softened, leading to the main inflation outlook. However, uncertainty remains a challenge in the global political and economic environment.

The survey also states that India’s foreign exchange reserves are strong, which cover 90 percent of the external loan and provide import cover of over ten months. In January 2024, in January 2024, USD increased from 616.7 billion to reserve from 616.7 billion to 3 January 2025 to 634.6 billion to reach USD 634.6 billion from 704.9 billion to 704.9 billion. Stability in capital flow has played an important role in supporting India’s external strength.

The survey also highlighted significant growth in the formal employment sector. The membership of Net Employees Provident Fund Organization (EPFO) has exceeded 61 lakhs in FY 2019, is 131 lakhs in FY 2019.

It states that “India has seen significant growth in the formal sector in India, in which the membership of the Provident Fund Organization (EPFO) of NET employees is more than 61 lakhs in FY 2019, 131 lakh to 131 lakhs in FY14 in FY 2014. More than “.

The Economic Survey FY 26 presents a positive attitude for India’s economic development, supported by strong macroeconomic fundamentals, growing formal employment and stable external reserves.

However, there are important challenges for the economy in the rising years such as global uncertainties, adverse weather events and international value rapid rampage.



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