New Delhi, 31 Jan

India is expected to record GDP growth of 6.3-6.8 per cent in the financial year 2025-26 on the back of strong fundamentals, calibrated fiscal consolidation and stable private consumption, said the Economic Survey tabled in Parliament on Friday.

The economic growth rate is estimated to slip to 4-year low of 6.4 per cent in the current financial year.

"...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 survey said.

The Economic Survey 2024-25, tabled by Finance Minister Nirmala Sitharaman in both houses of Parliament, said navigating global headwinds will require strategic and prudent policy management and reinforcing the domestic fundamentals.

The Budget 2024-25 laid out a multi-sectoral policy agenda for sustained growth push.

It further said that investment activity expected to pick up, supported by higher public capex and improving business expectations.

As regards inflation, it said risk from higher commodity prices seems limited in FY26. However, geopolitical tensions still an issue, it added.

Food inflation is likely to soften in Q4 FY25 with seasonal easing of vegetable prices and kharif harvest arrivals.