Let’s talk about the Economic Survey today—its highlights—because the Budget is coming on 1st February, and we’ll explain the budget to you as well. Last time, taxpayers got a big relief—up to ₹12,75,000, no tax had to be paid. Today, we’ll focus on the Economic Survey.
The Economic Survey comes before the budget. The budget is for the next year, meaning it is about planning—how much money will be spent and where. Just like you plan your monthly expenses based on your income, the government plans the next year through the budget.
The Economic Survey is the opposite—it tells us about the previous year’s performance. So the Economic Survey 2026 gives us the complete health report of the current financial year. The budget will come on 1st February. Now, the survey is presented in a single volume, prepared by the Department of Economic Affairs, and it is a proper document that explains the country’s economic condition.
Hindustan Times has presented it very well using charts, so let’s go through everything step by step.
Before that, a quick update—our Graphic Designing course classes start day after tomorrow. It’s a certification course with good job opportunities, and till day after tomorrow, we are also giving a free e-book. The link is in the description and comment box—avail it quickly.
GDP Growth Rate
Let’s start with the GDP growth rate.
2022–23: 7.6%
2023–24: 9.2%
2024: 6.5%
2025: 7.4%
This is year-on-year growth, meaning how much we grew compared to the previous year. The actual growth turned out to be higher than estimates, which is a very good sign.
A strong GDP means better growth, more investment, and more opportunities. India is already the world’s largest market, and global companies like Amazon, Google, and Apple are investing heavily in India.
For the coming year, GDP growth is estimated between 6.8% and 7.2%, and if it crosses 7.2%, that will be excellent. Overall, India continues to grow steadily.
Per Capita Income
Per capita income—how much an average person earns—is very important.
2020: ₹1.69 lakh
Now: ₹2.20 lakh
Net National Income per capita has increased, which shows improved individual earning capacity.
Manufacturing & Factory Growth (CAGR)
Between 2014 and 2024, data shows:
Large factories (with 100+ workers) have grown much faster
Small factories (less than 100 workers) have grown slowly—around 1%
Employment growth:
Small factories: ~2%
Large factories: ~6%
This shows that big industries are expanding faster, which brings investment, but there is a risk—if small factories don’t grow well, monopolies can form.
Capital Expenditure (Capex)
Capital expenditure means how much the government spends on creating assets like roads, railways, and infrastructure.
Between 2022 and 2026, capital expenditure has nearly doubled.
2022: ₹5.92 lakh crore
2025: ₹10.18 lakh crore
2026: ₹11.21 lakh crore
This is excellent news because infrastructure spending has a multiplier effect—roads, flyovers, railways benefit businesses and people alike.
The biggest share of capex goes to:
Roadways
Railways
These two sectors contribute the most to economic growth.
Asset Creation
To grow an economy, you must create assets, not liabilities.
Property, gold, infrastructure = assets
Cars and depreciating items = liabilities
For the government:
Roads and railways are major assets
More than half of total capex is going into asset creation
Roads and highways alone have seen nearly 50% growth compared to last year. Railways have also grown, though more track expansion is still needed.
Defense spending has increased slightly.
Transfers to states have grown well.
Telecom, housing, and urban development have also seen growth.
Overall, asset creation is rising across sectors, which is positive.
Inflation Status
GDP growth this year stands at 7.4%.
Now, inflation:
Ideal inflation range: 4% ± 2%
RBI controls inflation using monetary policy (repo rate, CRR, SLR, etc.)
Earlier:
Inflation was above 6% (post-COVID impact)
Now:
Core inflation: 4.29%
Core inflation excluding gold & silver: 2.87%
CPI: ~1.7% (as of December)
This means inflation is fully under control, which is excellent.
Non-Tax Revenue
Government revenue comes from:
Interest receipts
Dividends and profits
External grants
Non-tax revenue has consistently increased from 2022 to 2026, which strengthens government finances.
Banking Sector & NPAs
Banks have done a remarkable job.
Earlier NPAs were above ₹10 lakh crore
Now, Net NPAs are continuously falling
Gross NPA = total bad loans
Net NPA = bad loans after adjusting collateral & provisions
Lower NPAs mean:
Stronger banks
Healthier economy
Digitization, UPI, loan demand, and startup growth have all contributed to this improvement.
Sector-wise Growth
Industrial growth: ~7%
Mining: -2% (due to regulations & court rulings)
Manufacturing: Strong growth (stations, airports, roads, machinery)
Electricity, gas, water: Slowed to ~2% (not ideal)
Construction: Around 7%
Services: ~9% (services contribute 64% to GDP)
Trade & hospitality: Slight dip due to heavy rainfall
Real estate & professional services: Strong growth
Public administration & defense: Growth observed
Overall, most sectors show positive growth.
FDI & Domestic Demand
Global FDI flows have increased despite uncertainty.
Asia remains stable
India continues to attract strong FDI
Domestic demand has risen:
From 56.9% to 61.4%
Investment remains stable.
Effective Capex & PLI Scheme
Effective capex: 4.3%
Total capex: 11.2%
Under the PLI (Production Linked Incentive) Scheme:
Solar PV: Massive growth (160%)
Electronics, pharma, drones, medical devices, food products: strong growth
Bulk drugs and telecom saw negative growth
India is rapidly advancing in renewable energy. Solar adoption is being encouraged with subsidies, helping people reduce electricity bills to zero.
Conclusion
This was a brief but comprehensive summary of the Economic Survey.
I hope you understood everything clearly.
Do share your thoughts in the comment box, and don’t forget to check out the Graphic Designing course.
Stay happy, keep studying.
This is Siddhant, signing off.