Highlights

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

Latest news

Nifty, Sensex open cautiously ahead of RBI policy announcement, investors also tracking Putin's India visit

Nifty, Sensex open cautiously ahead of RBI policy announcement, investors also tracking Putin's India visit

Pakistan formally appoints Asim Munir as first CDF

Pakistan formally appoints Asim Munir as first CDF

SIR in Gujarat: More than 17 lakh deceased voters found on electoral rolls

SIR in Gujarat: More than 17 lakh deceased voters found on electoral rolls

Indian athletes boosting nation's pride globally: UP CM Adityanath

Indian athletes boosting nation's pride globally: UP CM Adityanath

'Men in Black 5' in works with Chris Bremner scripting

'Men in Black 5' in works with Chris Bremner scripting

India-Russia Business Forum Chairman highlights expanding cooperation between both nations as Putin arrives in Delhi

India-Russia Business Forum Chairman highlights expanding cooperation between both nations as Putin arrives in Delhi

Uttarakhand begins pre-revision exercise to verify voters from 2003 rolls

Uttarakhand begins pre-revision exercise to verify voters from 2003 rolls

Shah Rukh Khan, Kajol unveil ‘DDLJ’ sculpture at London’s Leicester Square

Shah Rukh Khan, Kajol unveil ‘DDLJ’ sculpture at London’s Leicester Square

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.

ADVERTISEMENT

Up Next

Economic Survey highlights inflation projections and agricultural reforms for FY26

Economic Survey highlights inflation projections and agricultural reforms for FY26

Rupee slumps to all-time low of 90.25 against US dollar in intra-day trade

Rupee slumps to all-time low of 90.25 against US dollar in intra-day trade

Reliance completes merger of Star Television Productions with Jiostar

Reliance completes merger of Star Television Productions with Jiostar

India to lead emerging market growth with 7pc GDP rise in 2025: Moody’s

India to lead emerging market growth with 7pc GDP rise in 2025: Moody’s

Nifty hits record high after 14 months; Sensex nears all-time peak

Nifty hits record high after 14 months; Sensex nears all-time peak

Reliance stops Russian oil use at its only-for-export refinery to comply with EU sanctions

Reliance stops Russian oil use at its only-for-export refinery to comply with EU sanctions

ADVERTISEMENT

editorji-whatsApp

More videos

ED attaches fresh assets worth over Rs 1,400 cr in case against Anil Ambani's Reliance Group

ED attaches fresh assets worth over Rs 1,400 cr in case against Anil Ambani's Reliance Group

India signs one-year deal to import 2.2 million tonnes of LPG from US

India signs one-year deal to import 2.2 million tonnes of LPG from US

India International Trade Fair begins at Pragati Maidan amid tight security

India International Trade Fair begins at Pragati Maidan amid tight security

Stock markets decline in initial trade on foreign fund outflows, weak Asian peers

Stock markets decline in initial trade on foreign fund outflows, weak Asian peers

Amazon to lay off 30,000 office workers amid AI-driven cost cuts

Amazon to lay off 30,000 office workers amid AI-driven cost cuts

US sanctions on Russian firms to hit Reliance; PSUs likely to keep buying Russian oil via traders

US sanctions on Russian firms to hit Reliance; PSUs likely to keep buying Russian oil via traders

Dream debut: LG Electronics India shares jump over 50 pc

Dream debut: LG Electronics India shares jump over 50 pc

One GB wireless data in India costs less than a cup of tea: PM Modi

One GB wireless data in India costs less than a cup of tea: PM Modi

Power struggle in Tata Trusts: Trustees clash over board appointments

Power struggle in Tata Trusts: Trustees clash over board appointments

World Bank raises India's growth projection to 6.5 pc for 2025-26

World Bank raises India's growth projection to 6.5 pc for 2025-26

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