Economic Survey 2025–26 Key Takeaways: GDP Growth, Inflation, Sectoral Review & 20 MCQs

The Economic Survey is authored by the Economic Division of the Department of Economic Affairs under the direct guidance of the Chief Economic Advisor.

The first Economic Survey was presented for 1950–51, reviewing national post-independence economic conditions and the First Five-Year Plan.

Until 1964, the Economic Survey was presented along with the Union Budget; from 1964 onwards, it has been presented a day prior to provide economic context.

The Survey pegged real GDP growth between 6.5% and 7.0%, driven by robust capital formation and sustained service exports.

In 2014, the RBI officially adopted the Consumer Price Index (Combined) as the anchor for flexible inflation targeting.

The current base year for the All India Consumer Price Index (Rural, Urban, Combined) compiled by the National Statistical Office is 2012=100.

The Wholesale Price Index (WPI) series released by the Office of the Economic Adviser (DPIIT) currently uses 2011–12 as its base year.

The National Statistical Office (formed by merging CSO and NSSO in 2019) is responsible for releasing national accounts, GDP, and CPI data.

Core inflation strips out volatile food and energy price components to measure underlying, persistent inflationary pressures.

Among the Eight Core Industries, Petroleum Refinery Products holds the largest weightage at approximately 28.04%.

The Eight Core Industries comprise 40.27% of the total weight of items included in the Index of Industrial Production.

Under RBI prudential norms, an asset becomes non-performing when it ceases to generate income, typically after remaining overdue past 90 days.

Enacted in 2016, the IBC provides a creditor-in-control, time-bound framework (typically 180 to 330 days) to maximize value resolution of stressed assets.

The Services Sector is the dominant contributor to GVA in India, driven by software IT services, financial services, logistics, and professional business consulting.

A country has a Current Account Deficit when the value of goods, services, and transfers it imports exceeds the value of those it exports.

India's foreign exchange reserves comprise Foreign Currency Assets, Gold holdings, Special Drawing Rights (SDRs) at the IMF, and the Reserve Tranche Position in the IMF.

The Gini coefficient ranges from 0 (perfect equality where everyone has the same income) to 1 (perfect inequality where one individual has all the income).

Singapore has consistently been India's top foreign direct investment source, accounting for the largest share of cumulative equity inflows.

India ranks first worldwide in remittance inflows, receiving over $120 billion annually from its skilled and semi-skilled diaspora abroad.

The twin balance sheet challenge involved over-indebted private infrastructure firms unable to repay debt and banks burdened by mounting non-performing assets.

Propelled by phased manufacturing programs and the PLI scheme, India rose to become the second-largest mobile phone manufacturer in the world after China.

Fiscal drag happens when progressive tax brackets are unindexed for inflation, automatically increasing the tax burden on wage earners.

The Periodic Labour Force Survey (PLFS) notes that agriculture continues to employ roughly 44% to 46% of the workforce, reflecting structural disguised underemployment.

Sovereign Green Bonds mobilize funds specifically for renewable energy, clean transportation, water conservation, and climate adaptation projects.

A ‘greenium' (green premium) reflects the yield discount that investors accept when buying certified green bonds due to high ethical demand.

Developed by NPCI, UPI processes billions of instant consumer and merchant transactions every month, anchoring India's digital public infrastructure.

NPCI is an umbrella organization established by the RBI and the Indian Banks' Association under the Payment and Settlement Systems Act, 2007.

Headline inflation measures the total inflation in the economy, including volatile commodities like vegetables, edible oils, and petroleum products.

If inflation was unusually low in the previous year's base month, even a moderate price rise in the current month yields an artificially elevated percentage growth.

The Economic Survey provides diagnostic macroeconomic evaluation and policy alternatives, but its recommendations carry advisory, non-binding status.