Economic Survey 2026: 10 things to watch out for ahead of Finance Ministry's presentation on 29 January

As the Union Budget 2026 approaches, focus also remains on the Economic Survey, a crucial precursor to the annual budget. Finance Minister Nirmala Sitharaman will table the Survey in both Houses of Parliament today, 29 January, during the ongoing Budget Session.

The Department of Economic Affairs of the Finance Ministry has prepared the key document under the leadership of V. Anantha Nageswaran, the Chief Economic Adviser (CEA). Traditionally released a day before the Union Budget, the Survey this year comes earlier, ahead of the budget presentation on 1 February.

What is the Economic Survey?

The Economic Survey is an annual report on the state of the Indian economy that offers a detailed analysis and review of the previous fiscal year, the upcoming year, growth indicators, inflation forecasts, and the outlook for employment, trade, and the country's fiscal health.

10 key factors to look out for in the Economic Survey

State of the Indian economy

The Economic Survey provides a recap of how the Indian economy has performed over the year, taking into account other global factors, including political and economic issues.

In 2025, the Economic Survey estimated India's economic outlook for FY26 would be cautious, facing geopolitical uncertainties and potential commodity price shocks. Key growth drivers include private-sector investment, consumer confidence, and improvements in rural demand, alongside the need for structural reforms to enhance global competitiveness.

Employment trends

To fully utilise India's demographic dividend, creating quality jobs is essential. The Economic Survey highlights the government's focus on reskilling and upskilling to meet global workforce demands while trying to promote labour flexibility and their welfare to drive job growth.

External sector

India's external sector shows the country's preparedness for global economic uncertainties. The government earlier acknowledged that a strategic trade roadmap is essential to adapt to protectionism and enhance competitiveness in global supply chains.

The last Economic Survey highlighted that exports reached $602.6 billion and imports touched $682.2 billion. In FY25, foreign portfolio investments showed mixed trends amid global market uncertainty and profit-taking, though strong macroeconomic factors kept FPI flows positive. Gross FDI inflows revived, while net FDI declined. India's foreign exchange reserves reached $640.3 billion, covering 90% of external debt.

Prices and inflation

The last Economic Survey report said that understanding of inflation trends was crucial for assessing the global economy. Global inflation peaked in 2022 and then declined. In India, retail inflation eased in FY25 due to government measures. Core inflation fell to its lowest level in a decade, while food prices remained sensitive due to supply chain disruptions and weather factors.

Investment and infrastructure

Over the past five years, the government has focused on building physical, digital, and social infrastructure, increasing public spending, and fostering public-private partnerships to meet the goals for Viksit Bharat@2047.

Growth in the monetary and financial sector

Financial institutions are crucial to shaping a nation's economic growth by facilitating economic activity. The current monetary policies impact how financial intermediation interacts with the broader economy.

Development of the manufacturing sector

The key document shows how India's manufacturing sector has evolved significantly, filling gaps left by developed nations. Key challenges include geopolitical tensions and trade policy issues. Growth in industries such as steel and pharmaceuticals remained promising last year, but sustained efforts across government and industry are essential to strengthen the country's manufacturing power.

State of agriculture, services, industries

The Economic Survey gives a sector-wise breakdown of the economy, highlighting the performance of agriculture, industries and services. This offers a glimpse into which sector contributes the most to the economy and the challenges faced by each sector.

Climate risks

In the previous Economic Survey, the government highlighted the country's aim to achieve robust economic growth to become a developed nation by 2047, emphasising inclusive development and low-carbon growth. However, challenges such as renewable energy deployment and inadequate international finance remain. Hence, adaptation strategies are crucial, as increased expenditures underscore their importance for resilience and sustainability efforts.

Outlook on AI

The last Economic Survey addressed how the rapid growth of artificial intelligence (AI) has brought both opportunities and challenges for global labour markets. With the increasing influence of AI, the key document urged policymakers to consider its impact and emphasised the importance of institutions in managing disruption and promoting fairness. As AI continues to be a global topic of discussion, any outlook for it in the Economic Survey will be crucial.