January 31, 2025: The Indian economy is projected to grow between 6.3% and 6.8% in the financial year 2025-26 (FY26), according to the Economic Survey 2024-25. The forecast suggests a moderate growth trajectory amid global economic challenges.

"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," stated the survey released by the government.

Despite strong macroeconomic stability, the survey highlighted pressures on the manufacturing sector due to weak global demand and domestic seasonal conditions. However, steady private consumption, a services trade surplus, and healthy remittance inflows have provided a buffer against external uncertainties.

India's economic resilience is attributed to fiscal discipline and a stable external balance, which have reinforced the nation's growth prospects. With these factors in place, the country is poised for sustained development, albeit at a moderate pace.