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.
At the same time, while headline inflation continues to reflect volatility in food prices, the subdued trajectory of core inflation (excluding gold and silver) indicates a strengthening of supply-side conditions across the economy, consistent with rising productive capacity and improved logistics. 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.