Economic Survey 2026: India Sees 7.4% Growth and 9.2 Crore Taxpayers, CEA Highlights Key Takeaways

India’s economy is on a strong upward trajectory, with growth accelerating, inflation easing, and both consumers and businesses increasing spending and investment, according to the Economic Survey 2026 presented on Thursday. Chief Economic Advisor (CEA) V. Anantha Nageswaran elaborated on the survey’s findings at a press conference, highlighting key indicators that point to a resilient and expanding domestic economy.

GDP Growth Accelerates

The survey projects real GDP growth to accelerate to 7.4% in FY26, up from 6.5% in FY25 and a pre-pandemic average of 6.4% (FY12-FY20). The growth is being driven by strong domestic demand, encompassing both private consumption and investment.

• Private Final Consumption Expenditure (PFCE): Growth remains robust at 7.0% in FY26, slightly down from 7.2% in FY25.
• Gross Fixed Capital Formation (GFCF): Investment activity is rising steadily, projected at 7.8% in FY26, up from 7.1% in FY25 and 6.3% during FY12-FY20.

CEA Anantha Nageswaran emphasized that these trends reflect strong foundational support for long-term economic expansion.

Inflation Moderates Sharply

Inflation has eased considerably:

• CPI Inflation: Fell from 6.7% in FY23 to 4.7% in FY25 and is projected at 1.7% by December FY26.
• Core Inflation: Excluding gold and silver, core inflation declined from 6.1% in FY23 to 3.0% in FY25 and is estimated at 2.9% in FY26.

This moderation indicates reduced price pressures and a healthier macroeconomic environment.

Fiscal Deficit Continues to Decline

The government’s fiscal deficit has steadily reduced over the years:

• FY21: 9.2% of GDP
• FY22: 6.7%
• FY23: 6.5%
• FY24: 5.5%
• FY25 (RE): 4.8%
• FY26 (BE): Targeted at 4.4%

The primary deficit has also declined, reflecting improved fiscal discipline.

Strong Revenue Growth and Expanding Tax Base

Revenue performance remains robust, supported by higher collections and an expanding tax base:

• Gross Tax Revenue: Increased from an average of 10.8% of GDP (FY16-FY20) to 11.5% post-pandemic (FY22-FY25).
• Personal Income Tax Collections: Rose from 2.4% of GDP pre-pandemic to 3.3% after FY22.
• Number of Taxpayers: Expanded from 6.9 crore in FY22 to 9.2 crore in FY25, highlighting greater compliance and formalization of the economy.

CEA’s Summary

According to CEA Nageswaran, these indicators underscore that India’s economic growth is sustainable, supported by strong domestic consumption, investment, and fiscal prudence. The survey reflects a positive outlook for FY26, suggesting continued economic momentum and a resilient domestic market.