Highlights

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

Latest news

Another Hindu man lynched in Bangladesh over alleged extortion, government denies communal angle

Another Hindu man lynched in Bangladesh over alleged extortion, government denies communal angle

US launches Christmas Day strikes on IS targets in Nigeria

US launches Christmas Day strikes on IS targets in Nigeria

Nitin Gadkari reveals how he met Hamas chief Ismail Haniyeh hours before assassination in Tehran

Nitin Gadkari reveals how he met Hamas chief Ismail Haniyeh hours before assassination in Tehran

BNP acting chairman Tarique Rahman returns to Dhaka after 17 years in exile

BNP acting chairman Tarique Rahman returns to Dhaka after 17 years in exile

India revamps tax regime in 2025, new I-T Act to take effect from April 1

India revamps tax regime in 2025, new I-T Act to take effect from April 1

BNP's acting chief Tarique Rahman set to return to Bangladesh after 17-year exile

BNP's acting chief Tarique Rahman set to return to Bangladesh after 17-year exile

Navi Mumbai International Airport starts commercial flight operations

Navi Mumbai International Airport starts commercial flight operations

PM Modi attends Christmas service at Delhi church, greets citizens

PM Modi attends Christmas service at Delhi church, greets citizens

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

New Zealand commits USD 20 bn investment in India under FTA in 15 yrs; on lines of EFTA pact

New Zealand commits USD 20 bn investment in India under FTA in 15 yrs; on lines of EFTA pact

India, New Zealand conclude FTA talks; pact to offer duty-free access, USD 20 bn FDI

India, New Zealand conclude FTA talks; pact to offer duty-free access, USD 20 bn FDI

FTA with New Zealand to significantly deepen bilateral economic engagement: Govt

FTA with New Zealand to significantly deepen bilateral economic engagement: Govt

Rupee breaches 91-mark against US dollar for first time in intra-day trade

Rupee breaches 91-mark against US dollar for first time in intra-day trade

Microsoft commits USD 17.5 billion investment in India: CEO Satya Nadella

Microsoft commits USD 17.5 billion investment in India: CEO Satya Nadella

ADVERTISEMENT

editorji-whatsApp

More videos

CBI books Anil Ambani's son, Reliance Home Finance Ltd. in Rs 228 crore bank fraud case

CBI books Anil Ambani's son, Reliance Home Finance Ltd. in Rs 228 crore bank fraud case

RBI raises FY26 GDP growth projection to 7.3 pc

RBI raises FY26 GDP growth projection to 7.3 pc

RBI trims policy interest rate by 25bps to 5.25pc, loans to get cheaper

RBI trims policy interest rate by 25bps to 5.25pc, loans to get cheaper

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

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

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