Economic Survey pegs India's potential growth between 6.8-7.2% in FY27, outlook positive despite global risks
New Delhi, January 29
India's economic growth remains resilient with strong domestic demand acting as the main anchor, even as the global environment continues to remain fragile, according to the Economic Survey of India tabled in Parliament on Thursday.
Taking an optimistic view of the economy, the Economic Survey estimated India's potential growth at around 7 per cent. It also projected that India's GDP growth in FY27 is likely to remain in the range of 6.8 per cent to 7.2 per cent, reflecting the economy's medium-term strength supported by reforms and macroeconomic stability.
The Survey noted that while global economic conditions remain uncertain and fragile, India's overall outlook continues to be positive. It highlighted that India's growth is holding up better than expected compared to many other economies, although risks remain elevated due to global uncertainties.
According to the Economic Survey, India's external stability continues to be a key strength for the economy. This has helped the country remain relatively insulated from global volatility. However, the report cautioned that the impact of global shocks could surface with a lag, and policymakers need to remain vigilant.
The Survey emphasised that domestic demand continues to be the primary driver of economic growth. Strong consumption demand, particularly in urban areas, has supported overall economic activity. It noted that tax rationalisation measures undertaken in recent years have contributed to an improvement in urban consumption, providing further momentum to growth.
The Economic Survey also highlighted that India's medium-term growth trajectory remains strong, supported by structural reforms and sustained macroeconomic stability. These factors have helped improve economic fundamentals and enhance the economy's ability to withstand external shocks.
While acknowledging that growth has been better than initially expected, the Survey pointed out that risks to growth remain elevated due to a fragile global environment. It stated that geopolitical tensions, global financial conditions, and external economic uncertainties could pose challenges going forward.
Despite these risks, the Survey maintained a positive outlook for India, citing strong domestic fundamentals, stable external indicators, and ongoing reforms as key factors supporting growth.
Overall, the Economic Survey presented a balanced assessment, recognising both the strengths and risks facing the economy.
— ANI
Reader Comments
Positive outlook is good, but I hope this growth translates to more jobs for our youth. The survey mentions urban consumption, but what about rural areas? We need balanced growth across all sectors and regions.
Resilient indeed! While the world faces recession fears, India's story is different. Our domestic market is huge. The caution about global shocks is valid though – we must build more self-reliance in critical areas.
As an expat working here, the macroeconomic stability is very noticeable. It makes India an attractive destination for long-term investment. The projected range seems realistic, not overly optimistic.
Good to see the survey acknowledging geopolitical risks. That's the elephant in the room. But our fundamentals are strong. Jai Hind! 🚀
A respectful criticism: The survey is positive, but inflation is still a concern for the common man. Growth numbers are important, but so is controlling the price of essentials like pulses and vegetables. Hope the budget addresses this.
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