Economic Survey: India's growth playbook for FY27

India’s economy isn’t sprinting, but it’s certainly not slowing down either. The Economic Survey 2025-26 pegs growth at a steady 6.8–7.2% in FY27, urging “caution, not pessimism” as global trade gets messier.

With inflation cooling, thanks to softer food prices and GST tweaks, the macro ground looks firm. But government spending is still doing the heavy lifting. Can private investment finally step up?

The survey thinks reforms are finally paying off, nudging India’s medium-term growth potential closer to 7%. Tax relief, a simplified direct tax law, FDI tweaks and bankruptcy reforms all feature in the optimism. Manufacturing gets a nudge, too—diversify exports, improve quality, build partnerships and, yes, get serious about semiconductors.

Inflation remains benign for now, although core prices and global metal costs bear watching. Low inflation has also capped nominal growth, good for consumers, tricky for revenues. Meanwhile, the survey nudges industry to invest and create jobs in an AI-shaken world. Will firms answer the call?

Read the full report by Gireesh Chandra Prasad and Subhash Narayan.

Find our extensive coverage of Economic Survey 2025-26 here.

THE MAIN STUFF

What Bharat wants from Budget 2026

India’s farms fed the nation well this year, but farmers didn’t quite reap the rewards. Good rains lifted output, yet falling crop prices hurt incomes.

So, what does Bharat want from the budget? First, stronger price support to cushion farmers from deflation. Second, serious money for soil health and agri research—yields won’t rise on goodwill alone. Third, smarter subsidies that reward diversification, not distortion. And finally, more non-farm jobs to steady rural incomes. Read on.

Inflation gets a reality check

India’s inflation math is finally catching up with how we actually live. From Uber rides and OTT subscriptions to smartphones and online shopping, a revamped Consumer Price Index, rolling out on 12 February, will start counting what households really spend on today.

Out go relics like VCRs and audio cassettes. The new basket is bigger, smarter, and more tech-driven, pulling prices from e-commerce platforms and official databases. Will this sharpen RBI’s policy calls and give a truer read on price pressures? That’s the bet behind CPI 2024. Read more.

Shareholders draw the line at Coforge

In a rare show of muscle, public shareholders at Coforge pushed back against special boardroom rights for Advent International, forcing the IT firm to drop clauses that allowed the private-equity major to nominate members to key oversight committees.

The revolt, 31% voting against, came just as Coforge seeks approval for its $2.4-billion acquisition of Encora. Governance first, growth later? With revised terms now up for vote, the deal is back on track. Read on.

Why India can’t take its foot off the infra pedal

Roads, railways, ports, power—India’s growth story is riding firmly on concrete and steel. The Economic Survey 2025-26 makes a pitch to keep infrastructure spending front and centre if India wants to reach Viksit Bharat 2047. With every ₹1 spent delivering up to ₹3.5 in GDP gains, public capex isn’t just building assets, it’s pulling private investment along.

But can the private sector now pick up the baton? As infrastructure expands beyond highways to digital, green energy and resilient systems, the challenge is execution, partnerships and staying the course amid global uncertainty. Read more.

Who do consumers trust now?

It began with a sugar call-out and a legal notice, and snowballed into a full-blown consumer awakening.

When Revant Himatsingka questioned the sugar in Bournvita, the backlash didn’t silence him; it amplified him. Today, creators, doctors and online communities are doing what regulators and labels often can’t: building trust.

From Instagram explainers to Reddit threads, buying decisions are shifting from brand promises to people we believe. Is this the rise of a new trust economy? And can brands keep up when credibility, not marketing, decides what lands in your shopping cart? Read on.

NEWS IN NUMBERS

$37.5 billion: The amount Microsoft Corp. spent on capital expenditure, primarily for AI and cloud infrastructure, in the last quarter of 2025, up 66% from the same period last year.

$115-135 billion: Meta Platforms Inc.'s projected AI capital expenditure for 2026, nearly double last year's spending as the company continues to invest heavily in its AI unit.

₹136 crore: Piramal Pharma’s consolidated net loss in Q3 FY26, reversing a ₹4 crore profit a year earlier, hurt by inventory destocking and slower order inflows.

5,002 tonnes: The global demand for gold in 2025, up from 4,961.9 tonnes in 2024, driven by a surge in investment demand, according to the World Gold Council.

₹14,500 crore: The allocation for social security pensions in Kerala’s 2026–27 Budget, part of a welfare push ahead of Assembly elections.

$305 million: The worldwide box office earnings of The Housemaid, a psychological thriller starring Sydney Sweeney, made with a budget of $35 million.

16,000: The number of job cuts announced by Amazon in its second round of layoffs in four months, taking total job losses since October 2025 to 30,000.

AROUND THE WORLD

• Middle East scrambles to find US, Iran a diplomatic off-ramp
• Why Powell won’t say if he is staying on Fed board
• Gold demand to remain strong as investors reassess risk, WGC says
• Near the front line, Russians are growing tired of war
• The Dollar seems doomed. Why some economists are pushing back.

LOUNGE RECOMMENDS

End dry January on a high with these bar takeovers

Experience craft mixology in Hyderabad as Lakshay Tamang from JW Marriott Kolkata takes over Mazzo’s rooftop bar. Expect master techniques and pours with Taxi Queen, a mix of bourbon and vanilla tea with Talisker and fresh red apple juice; Griffin’s Kiss made with blue pea vodka, rose gin and grapefruit; GG a flavourful concoction of Gondhoraj shrub paired with gin and syrup; and Oh my Ghee, a combination of dark rum, Arabica coffee, bourbon whiskey, ghee, and sesame oil. Read more.

WHAT THE FACT

The Beatles’ final jam

On this day in 1969, the Beatles—John Lennon, Paul McCartney, George Harrison and Ringo Starr—performed together for the last time.

The legendary 42-minute set unfolded on the rooftop of Apple Corps’ London headquarters and was cut short after neighbours complained about the noise, prompting a police visit. The impromptu concert later became iconic through footage featured in the documentary Let It Be, marking a historic and unscripted farewell to arguably the world’s most influential band.

Edited by Alokesh Bhattacharyya. Produced by Tushar Deep Singh.

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