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Economic Survey pegs India’s potential growth rate at 7 per cent
['Bhumika Lenka']
Business News This Week
New Delhi, Jan 29: The Economic Survey for 2025-26, tabled in Parliament on Thursday, has raised India’s potential growth rate to 7.0 per cent, up from 6.5 per cent three years ago, as “sustained domestic reforms and public investment are lifting the economy’s underlying growth capacity” despite the global headwinds.
“The expansion of infrastructure — illustrated by the doubling of the airport network over the past decade and the rapid growth of freight movement through inland waterways — is easing logistics constraints and raising economy-wide efficiency,” the economic survey notes.
In parallel, sustained state-level deregulation efforts are enabling small and medium enterprises to expand and integrate more effectively into formal value chains, elevating the economy’s medium-term growth potential, the survey observes.
The survey also observes that a predictable and credible fiscal trajectory by the Centre over the past years has anchored overall macroeconomic stability by balancing growth imperatives with fiscal sustainability.
“The good news is that, on balance, the evidence presented in this Survey shows that India will choose well,” he added.