Finance Minister Nirmala Sitharaman tabled the Economic Survey for 2024-25 in both Houses of Parliament on Friday, a day before the Union Budget 2025. According to the Economic Survey, the Indian economy is projected to grow between 6.3 per cent and 6.8 per cent in FY26.
"The fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation, and stable private consumption. On balance of these considerations, we expect that the growth in FY26 would be between 6.3 and 6.8 per cent," the Economic Survey, prepared by the Economic Division of the Department of Economic Affairs (DEA), noted.
It noted that food inflation is expected to ease in Q4 FY25 due to the seasonal decline in vegetable prices and the arrival of the Kharif harvest. A good Rabi production is also expected to help keep food prices in check in the first half of FY26. However, adverse weather conditions and rising international agricultural prices pose risks to inflation.
The Economic Survey presents a positive outlook for India's economic growth in FY26, backed by strong macroeconomic fundamentals, rising formal employment, and stable external reserves.
However, risks such as global uncertainties, adverse weather events, and international price fluctuations remain key challenges for the economy in the coming year.??
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Earlier, the Budget Session of the Indian Parliament commenced on Friday, with the address of President Droupadi Murmu to the joint sitting of the Lok Sabha and Rajya Sabha.
Finance Minister Sitharaman will present the Union Budget 2025 in Parliament on Friday. This will be the eighth straight budget of Sitharaman as Finance Minister and the first full budget of the Modi government's third term.
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