Finance Minister Nirmala Sitharaman
Credit: Reuters Photo
The government has forecasted that Indian economy will grow 6.8 per cent-7.2 per cent in 2026-27.
Finance Minister Nirmala Sitharaman tabled the Economic Survey of India 2025-2026 in the Lok Sabha.
The annual economic survey, says the domestic economy remains on a stable footing but slower growth among trading partners and tariff-induced disruptions to trade could weigh on exports and investor sentiment.
The government projects this fiscal year's growth at 7.4 per cent, beating the 6.3 per cent-6.8 per cent forecast range from last year's survey. The report on the state of the economy, authored by Chief Economic Adviser V. Anantha Nageswaran and his team in the finance ministry, investment and consumption are likely to gain strength as firms respond to recent reforms.
The report is a precursor to the federal budget on Sunday, which will seek to bolster fast economic growth and buffer the South Asian nation from geopolitical shocks and tariff policy uncertainty from Washington that has upended global trade.
Despite the fast growth and low inflation, foreign investors have continued to sell Indian shares after a record outflow in 2025 on stretched valuations, subdued earnings and geopolitical concerns.
President Donald Trump in August slapped a 50 per cent tariff on some Indian goods entering the US.
India and the European Union struck a long-delayed deal on Tuesday that will slash tariffs on most goods, aiming to boost two-way trade and reduce reliance on the United States. In recent months, New Delhi finalised pacts with Britain, New Zealand and Oman.
(With PTI inputs)