Highlights

  • Inflation projection for FY26: RBI and Economic Survey align
  • TOP commodities drive food inflation
  • Government focusing on agricultural reforms

Latest news

ASUS Vivobooks Add Intel-Powered Flip Laptops, Snapdragon Battery Champs And AMD Power

ASUS Vivobooks Add Intel-Powered Flip Laptops, Snapdragon Battery Champs And AMD Power

POCO X8 Power Review: The 10,000mAh Battery Phone Done Right 

POCO X8 Power Review: The 10,000mAh Battery Phone Done Right 

Samsung Galaxy S26 FE Launched in India at Rs 79,999 With Exynos 2500 and One UI 9

Samsung Galaxy S26 FE Launched in India at Rs 79,999 With Exynos 2500 and One UI 9

vivo Buds Review: The Budget Earbuds I’d Actually Trust for a Full Workweek

vivo Buds Review: The Budget Earbuds I’d Actually Trust for a Full Workweek

Infinix HOT 70 Pro 5G Review: Big Battery, Distinct Design, But Is It Worth It?

Infinix HOT 70 Pro 5G Review: Big Battery, Distinct Design, But Is It Worth It?

Apple iPhone Duo Price In India: What Do You Get For ₹2,99,900?

Apple iPhone Duo Price In India: What Do You Get For ₹2,99,900?

iPhone Duo Costs ₹2,99,900 In India. Here’s What It Costs In Other Countries

iPhone Duo Costs ₹2,99,900 In India. Here’s What It Costs In Other Countries

iPhone 18 Pro vs iPhone 17 Pro: What Does Apple Actually Give You For ₹1.65 Lakh?

iPhone 18 Pro vs iPhone 17 Pro: What Does Apple Actually Give You For ₹1.65 Lakh?

Economic Survey highlights inflation projections and agricultural reforms for FY26

The Economic Survey for FY26 aligns with RBI's inflation projections, focusing on key factors driving food inflation, particularly the Tomato, Onion, and Potato (TOP) commodities. 

Economic Survey highlights inflation projections and agricultural reforms for FY26

The Economic Survey tabled in Parliament on Friday aligns with the Reserve Bank of India’s (RBI) projection of headline inflation for FY26 at 4.2 percent and 4.8 percent in the current fiscal year.

With the Union Budget set to be presented on Saturday, the Economic Survey stressed the role of a few key commodities—Tomato, Onion, and Potato (TOP)—in driving food inflation. When these three price-sensitive vegetables were excluded, the average food inflation in FY25 (April-December) stood at 6.5 percent, which is 1.9 percentage points lower than the overall food inflation rate.

Similarly, excluding the impact of TOP, the headline inflation rate was 4.2 percent, which is 0.7 percentage points lower than the current headline inflation.

Despite a global decline in food inflation, India continues to face persistent inflationary pressures in specific food categories, primarily due to supply chain disruptions and adverse weather conditions affecting production.

The moderation in global commodity prices is expected to help ease India’s domestic inflation. The survey highlights that a normal southwest monsoon in 2024 has considerably improved water reservoir levels, ensuring adequate irrigation for rabi crop production.

The first advanced estimates of agricultural production for 2024-25 predict a 5.7 percent increase in Kharif food grain production. Rice and tur production are expected to increase by 5.9 percent and 2.5 percent, respectively, compared to 2023-24, which may contribute to alleviating food inflation in the months ahead.

However, the survey also noted potential risks to food inflation due to rising international vegetable oil prices. To ensure long-term price stability in essential food commodities, the government is focusing on structural reforms.

A key strategy is enhancing research and development in agriculture, particularly in developing climate-resilient crop varieties, which could help improve yields and reduce vulnerability to production losses.

Additionally, the government is encouraging increased cultivation in rice-fallow regions to address India’s persistent deficit in pulses and oilseeds. Strengthening data collection and price monitoring systems is another important step, with the government implementing mechanisms to track prices, stock levels, and storage facilities at various administrative levels.

The survey further pointed out that extreme weather events such as cyclones, floods, droughts, and unseasonal rainfall have worsened food price volatility.

Frequently Asked Questions

The Economic Survey projects headline inflation for FY26 at 4.2 percent and 4.8 percent in the current fiscal year, aligning with the Reserve Bank of India's projection.

ADVERTISEMENT

Up Next

Economic Survey highlights inflation projections and agricultural reforms for FY26

Economic Survey highlights inflation projections and agricultural reforms for FY26

UPI Payments In Uzbekistan: Indian Travellers To Get QR-Based Payment Option

UPI Payments In Uzbekistan: Indian Travellers To Get QR-Based Payment Option

India’s Q1 GDP Growth Hits 7.8%, Beats RBI Estimate

India’s Q1 GDP Growth Hits 7.8%, Beats RBI Estimate

Repo rate today at 5.25%: how long an RBI decision takes to reach your home loan interest rate

Repo rate today at 5.25%: how long an RBI decision takes to reach your home loan interest rate

Step-by-step guide to apply for a mortgage loan online with minimal documentation

Step-by-step guide to apply for a mortgage loan online with minimal documentation

Honda Activa 6G: Everything You Need to Know Before Buying

Honda Activa 6G: Everything You Need to Know Before Buying

ADVERTISEMENT

editorji-whatsApp

More videos

How much does a ULIP plan really cost? A break-down of all charges

How much does a ULIP plan really cost? A break-down of all charges

Centre plans to borrow Rs 8.20 lakh cr from market in first half of FY27

Centre plans to borrow Rs 8.20 lakh cr from market in first half of FY27

Reliance denies buying Iranian oil amid US sanctions waiver

Reliance denies buying Iranian oil amid US sanctions waiver

Premium petrol price up Rs 2, industrial diesel up Rs 22; no change in normal petrol, diesel rates

Premium petrol price up Rs 2, industrial diesel up Rs 22; no change in normal petrol, diesel rates

India's GDP expected to register over 8 pc growth in Sep-Dec: Report

India's GDP expected to register over 8 pc growth in Sep-Dec: Report

Govt announces seven measures to help boost exports

Govt announces seven measures to help boost exports

RBI keeps interest rates on hold after US trade deal boosts outlook

RBI keeps interest rates on hold after US trade deal boosts outlook

RBI proposes to compensate customers up to Rs 25,000 loss due to fraud

RBI proposes to compensate customers up to Rs 25,000 loss due to fraud

RBI raises GDP growth projection of Q1, Q2 of FY27

RBI raises GDP growth projection of Q1, Q2 of FY27

RBI pauses rate cuts, retains interest rate at 5.25 pc

RBI pauses rate cuts, retains interest rate at 5.25 pc

Editorji Technologies Pvt. Ltd. © 2022 All Rights Reserved.