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India sees 6.8%-7.2% growth next year, flags risks from geopolitics, weak exports

The Economic Survey raises medium-term growth potential to 7.0% and warns of risks from US tariffs and global trade uncertainties affecting exports and the rupee.

  • On January 29, 2026 the Economic Survey tabled in Parliament projects FY27 growth of 6.8%–7.2% and upgrades potential to 7%.
  • The Survey credited GST rationalisation, faster deregulation and public investment for lifting the outlook, highlighting mission-mode platforms and procurement reforms as steps toward an entrepreneurial state.
  • The Survey recorded net Foreign Portfolio Investor selling from April–December 2025 while Domestic Institutional Investors supported markets, and Exporters said fresh US orders stopped amid steep 50% US tariffs.
  • The Survey's findings are set to inform the Budget on February 1, and MoSPI will release revised GDP data on February 27, which may prompt forecast revisions.
  • The Survey contrasts its forecast with IMF and World Bank estimates, warning India remains a victim of geopolitics despite a significantly higher growth forecast than global agencies.
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Times of India broke the news in India on Tuesday, January 27, 2026.
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