Economic Survey 2026: Domestic Demand Hits Decade High, Driving India's Growth

• India's economic growth in FY26 is primarily driven by robust domestic demand, with private consumption being the strongest factor.
• The Economic Survey 2026 highlights that the share of final private consumption expenditure (PFCE) in GDP reached 61.5% in FY26.
• This 61.5% share marks the highest level recorded since FY12, indicating a significant reliance on household spending.
• PFCE grew by 7.5% in the first half of FY26, further solidifying its role in sustaining the growth momentum.

Why It Matters: India's FY26 economic growth is propelled by domestic demand, with private consumption at a decade high.