Economic Survey Update
CA Raj Chawla
Quotes of the day:
1. Don't get Frustrated doing Continuous Efforts, Sometimes the Last Key of the Bunch Opens the Lock. Never stop trying until you are done.
2 Patience and Silence are two most powerful energies. Your Patience makes you mentally strong. And your Silence makes you emotionally strong. Patience gives peace to the waiting heart. Silence gives answers to the searching mind. Together, they transform ordinary days into extraordinary ones.
Economic Survey Update
1. Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman tabled the Economic Survey 2025-26 in Parliament today on January 29, 2026. The highlights of the Economic Survey are as follows.
STATE OF THE ECONOMY
2. The global environment remains fragile, with growth holding up better than expected but risks elevated amid intensifying geopolitical tensions, trade fragmentation and financial vulnerabilities. The impact of these shocks may still surface with a lag.
3. Against this backdrop, India’s performance stands out. The First Advance Estimates place FY26 real GDP growth at 7.4 per cent and GVA growth at 7.3 per cent, reaffirming India’s status as the fastest-growing major economy for the fourth consecutive year.
4. Private Final Consumption Expenditure grew by 7.0 per cent in FY26, reaching 61.5 percent of GDP, the highest since 2012 (FY23 also recorded 61.5 per cent share). This growth is supported by low inflation, stable employment, and increasing real purchasing power. Strong agricultural performance has bolstered rural consumption, while improvements in urban consumption, aided by tax rationalisation, indicate broad-based demand momentum.
5. Investment activity strengthened in FY26, with Gross Fixed Capital Formation growing by 7.8 per cent and its share remaining steady at 30 percent of GDP. This momentum was buoyed by sustained public capital expenditure and a revival in private investment activity, as evident from corporate announcements.
6. On the supply side, services remain the main driver of growth. In the first half of FY26, the Gross Value Added (GVA) for services increased by 9.3 per cent, with an estimated 9.1 per cent growth for the entire fiscal year. This trend indicates a broad-based expansion across the sector.
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With best regards
CA (Dr) Raj Chawla
B.Com (Hons), FCA, FCS, FCMA, LLB
MIMA, DISA, MICA, Phd, ASA (Aust), CMP (USA)
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