Module 2 • Macroeconomics & Finance2026-02-0215 min read

Economic Survey 2025–26: Macroeconomic Aggregates, Growth Drivers & External Sector

Target Exam: UPSC & State PSCs National Current Affairs•Official Sources: India National State Gazettes, Budget & Official ReleasesUnion Budget, PIB, Economic Survey & National Official Releases

1. Headline Growth & Macro Aggregates

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Real GDP Growth (FY 2025–26): Pegged at 7.4%, sustaining India's position as the fastest-growing major global economy for the fourth consecutive year.

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Real GVA Growth: Estimated at 7.3%.

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FY 2026–27 Growth Projections: Projected within the range of 6.8% to 7.2%.

2. Demand Drivers: Consumption, Capex & Investment

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Private Final Consumption Expenditure (PFCE): Constituted 61.5% of GDP in FY26—one of the highest consumption shares in the post-2011–12 series.

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PFCE Growth Rate: Expanded by 7.0% in real terms, underpinned by rural wage recovery, softening food inflation, and urban formal employment.

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Gross Fixed Capital Formation (GFCF): Sustained over 31% of GDP, propelled by robust central capital expenditure and nascent revival in private corporate capex.

3. Supply-Side Performance: Sectoral Breakup

Sector	FY26 Estimated Growth	Core Dynamics
Agriculture & Allied	3.1%	Robust Kharif harvest, resilient horticulture and dairy output.
Industry (Overall)	6.2%	Broad-based industrial expansion across electricity, mining, and factory output.
Manufacturing	7.0%	H1 FY26 recorded 8.4% growth (vs 4.8% in H1 FY25), driven by auto, electronics, and chemicals.
Construction	7.0%	Sustained infrastructure pipeline and urban housing revival.
Services Sector	9.1%	Continues as the prime growth engine, led by IT-BPM, financial services, aviation, and hospitality.

4. External Sector Resilience: Exports, Remittances & FDI

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Total Exports (Goods + Services): Reached a landmark US$ 825.3 billion in FY25.

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Services Exports: Stood at US$ 387.6 billion, registering 13.6% annual growth.

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Global Merchandise Export Footprint: India's share in global merchandise exports expanded from ~1.0% in 2005 to 1.8% in 2024.

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Remittances: India remained the world's largest recipient of inward remittances, receiving US$ 135.4 billion in FY25 (crucial buffer for Current Account Deficit containment and Rupee stability).

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FDI Inflows: Total FDI inflows stood at US$ 81.0 billion in FY25.

5. Financial Sector Health & Inclusion

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Banking Asset Quality: Gross Non-Performing Assets (GNPAs) of Scheduled Commercial Banks dropped to a multi-decadal low of 2.2% (September 2025).

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Capital Adequacy (CRAR): Sustained above 16.5%, enabling credit offtake exceeding 14%.

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Financial Inclusion (PM Jan Dhan Yojana): Surpassed 55.02 crore accounts (March 2025), with 36.63 crore accounts in rural/semi-urban areas, anchoring the JAM trinity for direct benefit transfers.

Key Examination Takeaways:

Economic Survey 2025–26 pegs real GDP growth at 7.4% and real GVA at 7.3%, projecting 6.8–7.2% for FY27.
Private Final Consumption Expenditure (PFCE) accounted for 61.5% of GDP with 7.0% growth, acting as the primary growth engine.
Services sector grew at 9.1%, while manufacturing exhibited a strong turnaround of 8.4% in H1 FY26 (7.0% full year).
India achieved $825.3B total exports, $135.4B inward remittances (world leader), and multi-decadal low bank GNPAs of 2.2%.

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According to the Economic Survey 2025–26, what was India's estimated real GDP growth rate for FY 2025–26?

What is the projected real GDP growth range for FY 2026–27 according to the Economic Survey 2025–26?

What was the share of Private Final Consumption Expenditure (PFCE) in India's GDP in FY 2025–26 according to the Economic Survey?

What was the total value of India's combined exports of goods and services in FY 2024–25?

How much foreign inward remittances did India receive in FY 2024–25, retaining its rank as the world's largest recipient?

What was the Gross Non-Performing Assets (GNPA) ratio of Scheduled Commercial Banks in September 2025 as highlighted in the Economic Survey?

By March 2025, how many bank accounts had been opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY)?

Given below are two statements, one labeled as Assertion (A) and the other as Reason (R): Assertion (A): Gross Non-Performing Assets (GNPAs) of Scheduled Commercial Banks reached a multi-decadal low of 2.2% in September 2025. Reason (R): Rigorous resolution frameworks under the Insolvency and Bankruptcy Code (IBC) and corporate balance-sheet deleveraging substantially repaired banking asset quality. In the context of the above statements, which one of the following is correct?

With reference to the macroeconomic assessment in Economic Survey 2025–26, consider the following statements: 1. Real GDP growth for FY 2025–26 was estimated at 7.4% while real GVA growth was 7.3%. 2. Services sector recorded the highest growth rate among broad sectors, expanding at 9.1%. 3. Manufacturing growth in the first half of FY26 slowed down to 3.2% due to global headwinds. Which of the statements given above is/are correct?

Q10

Consider the following statements regarding the external sector in Economic Survey 2025–26: 1. India's total exports of goods and services surpassed US$ 825 billion in FY25. 2. Services exports recorded an annual growth of over 13% in FY25. 3. Inward remittances declined for the first time in five years due to Gulf labor retrenchment. Which of the statements given above is/are correct?

Q11

With reference to Private Final Consumption Expenditure (PFCE) in India, consider the following statements: 1. PFCE represents the expenditure incurred by resident households and non-profit institutions serving households on final consumption. 2. In FY 2025–26, PFCE constituted over 60% of India's Gross Domestic Product. 3. A rising share of PFCE implies that economic growth is becoming exclusively export-driven. Which of the statements given above is/are correct?

Q12

Consider the following statements regarding the banking sector performance in the Economic Survey 2025–26: 1. Gross NPAs of Scheduled Commercial Banks declined to 2.2% in September 2025. 2. Decline in NPAs directly improves monetary transmission and enables higher bank credit flow to private enterprise. 3. The Capital to Risk-Weighted Assets Ratio (CRAR) of commercial banks fell below the statutory Basel III minimum threshold. Which of the statements given above is/are correct?

Q13

With reference to sectoral growth estimates in FY 2025–26, consider the following statements: 1. Agriculture and allied activities grew at an estimated 3.1%. 2. Construction sector grew at 7.0%, mirroring overall manufacturing expansion. 3. Services sector growth was outpaced by the industrial sector for the first time in five years. Which of the statements given above is/are correct?

Q14

Consider the following statements regarding the financial inclusion architecture under PM Jan Dhan Yojana (PMJDY): 1. More than 65% of total accounts opened under the scheme are located in rural and semi-urban areas. 2. Every PMJDY account holder is compulsorily required to maintain a minimum average monthly balance. Which of the statements given above is/are correct?

Q15

Given below are two statements, one is labelled as Assertion (A) and the other as Reason (R): Assertion (A): Gross Non-Performing Assets (GNPAs) of Scheduled Commercial Banks dropped to a multi-decadal low of 2.2% in September 2025. Reason (R): Extensive corporate deleveraging, operationalization of the Insolvency and Bankruptcy Code (IBC), and write-offs strengthened bank balance sheets. In the context of the above, which one of the following is correct?

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