According to the Economic Survey, the Free Trade Agreement (FTA) with Europe will strengthen India’s manufacturing competitiveness, export resilience and strategic capacity.
Union Finance Minister Nirmala Sitharaman on Thursday tabled the Economic Survey 2025-26 in the Lok Sabha. The Economic Survey is an annual document presented by the government ahead of the Union Budget to review the state of the country’s economy. It also provides an overview of the economy’s short-to-medium-term prospects. According to the Economic Survey 2025-26, India’s economy is expected to grow at 6.8-7.2 per cent in FY27, driven by regulatory reforms and strong fundamentals. The survey emphasised that India needs to prioritise domestic growth in an uncertain global environment and requires greater emphasis on buffers and liquidity.
According to the survey, the Free Trade Agreement (FTA) with Europe will strengthen India’s manufacturing competitiveness, export resilience and strategic capacity. It also mentioned that Indian currency underperformed in 2025.
GST reforms converted global uncertainty into an opportunity
The survey also discussed the GST (Goods and Services Tax) rejig and reforms, which turned global uncertainty into an opportunity. “FY27 to be a year of adjustment as the economy adapts to these changes,” it stated.
Talking about Artificial Intelligence, the Survey said corrections in overly optimistic asset valuations will happen if the AI boom fails to deliver the anticipated productivity gains.
The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance under the supervision of the Chief Economic Adviser.
The first Economic Survey was presented in 1950-51. At that time, it used to be a part of the budget documents. In the 1960s, it was separated from the Union Budget and tabled ahead of the Budget presentation.
The Union Budget for 2026-27 will be presented by the finance minister on Sunday. This will be the ninth consecutive budget to be presented by Sitharaman, a historic first by a woman finance minister in India.
