Trade deal with America has been mentioned in the Economic Survey. Although talks are ongoing between the two countries, the Economic Survey estimates that the deal will be finalized in 2026. The best news is about the economy. The Economic Survey said despite the impact of US tariffs on exports and manufacturing in the first three quarters of the current financial year, growth momentum has been maintained. This is because the government is continuously taking steps to reduce the impact of tariffs. In other words, despite US tariffs, weak global demand and geopolitical tensions, India’s economic momentum has had little impact.
Reasons behind strong GDP growth:
The Economic Survey 2025-26 shows the strength of the country’s economy. According to the survey, India’s GDP growth in the first advance estimate for FY26 was 7.4%, mainly due to strong domestic demand. The Economic Survey said India’s growth remains sustainable due to expansion of infrastructure and better fiscal discipline. Fiscal deficit in FY26 is estimated at 4.8%, which is within the GDP target.
According to the Economic Survey, domestic demand remains the biggest driver of India’s growth story. A balance is being seen between rural and urban demand, while continued investment in the infrastructure sector has increased employment and income opportunities. Economic activity has been boosted by increased government spending on roads, railways, logistics and digital infrastructure.
Strong performance despite global pressures:
According to the survey, downside risks remain across the world. However, it also said that the current global situation does not pose any immediate macroeconomic crisis for India. Strong foreign exchange reserves, a stable banking system and policy credibility act as a security blanket for India.
Government’s focus on exports:
According to the Economic Survey, the rupee is somewhat undervalued due to its dependence on the current account deficit (CAD). In terms of US tariffs, a weaker rupee is not considered too damaging for the economy. However, increasing manufacturing exports will be important for currency stability. Emphasis has been laid on promoting value-added and technology-based exports.
For the first time, a separate chapter on Artificial Intelligence (AI) has been included in the Economic Survey, indicating the government’s strong focus on this new technology in the coming days. The government is also keeping a close eye on the sharp rise in gold and silver prices. Global factors have been cited as the reason behind the increase in the prices of precious metals.
The Economic Survey believes that if infrastructure investment, export promotion and fiscal discipline is maintained, India can remain on the path to rapid and balanced growth despite global instability.
Meanwhile, the Economic Survey advises states to prioritize capital expenditure (capex) rather than cash transfers to prevent private investment from falling in the economy.
