Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025-26 in Parliament on January 29, outlining India’s economic performance, outlook and
policy priorities ahead of the Union Budget 2026-27, to be presented on February 1. Economic Survey 2025-26 says that ongoing negotiations for a trade agreement with the US are expected to conclude during the year, a development that could help reduce uncertainty on the external front. For India, it said, the global conditions translate into external uncertainties rather than immediate macroeconomic stress. Slower growth in key trading partners, tariff-induced disruptions to trade and volatility in capital flows could intermittently weigh on exports and investor sentiment, the Survey said. "At the same time, ongoing trade negotiations with the United States are expected to conclude during the year, which could help reduce uncertainty on the external front," Economic Survey said. India and the US are negotiating a bilateral trade agreement since March last year, PTI reported. So far, six rounds of negotiations have been held. Talks are going slow as the Trump-administration has imposed a steep 50 per cent tariffs on Indian goods from August last year, according to PTI. A delegation from the office of the US Trade Representative, led by Deputy US Trade Representative Ambassador Rick Switzer, was here in December 2025 for trade talks. The visit of US officials marks their second trip since the imposition of a 25 per cent tariff and an additional 25 per cent penalty on Indian goods entering the American market due to the purchase of Russian crude oil, as per PTI.
Growth rate
The Economic Survey on Thursday projected the GDP growth in the range of 6.8 to 7.2 per cent in 2026-27, a tad lower than 7.4 per cent estimated in the current fiscal. "The outlook, therefore, is one of steady growth amid global uncertainty, requiring caution, but not pessimism," said the pre-Budget document tabled in the Lok Sabha.
The growth projection has taken into consideration the cumulative impact of policy reforms over recent years that appear to have lifted the economy's medium-term growth potential closer to 7 per cent.
Economic Survey
Economic Survey highlights key trends, challenges and opportunities in the economy, setting the stage for the Union Budget 2026-27, which will be presented on February 1, 2026. The Economic Survey is a crucial indicator of the government's economic priorities and policy direction.Prepared by the Department of Economic Affairs in the Ministry of Finance, the Economic Survey assesses India’s economic performance over the past financial year and presents the outlook for the year ahead. The Economic Survey typically examines trends in GDP growth, inflation and monetary policy, fiscal health, external sector performance including trade and forex, social indicators and special sections on emerging issues. (With Agency Inputs)
