New Delhi, Jan 29 (IANS) Finance Minister Nirmala Sitharaman on Thursday said the Economic Survey 2025-26 reflects the healthy banking fundamentals, achieved due to the various banking reforms undertaken by Prime Minister Narendra Modi’s government in the last decade.
The Gross Non-Performing Asset (GNPA) ratio of scheduled commercial banks has fallen to a multi-decadal low of 2.2 per cent as of September 2025, marking a clear break from earlier stress cycles, the Finance Minister said in a series of posts on X.
"Recovery efficiency has strengthened, with NPA recovery rates nearly doubling from 13.2 per cent in FY18 to 26.2 per cent in FY25. Profitability has accelerated, with profit after tax rising 16.9 per cent in FY25 and Return on Assets stabilising at healthy levels, " she noted.
Meanwhile, Regional Rural Banks have also strengthened through consolidation and technology integration, achieving a record consolidated net profit of Rs 7, 600 crore in FY24, while their GNPA ratio dropped to a 13-year low of 5.4 per cent in FY25, the Survey showed.
Sitharaman said the government’s calibrated fiscal strategy, anchored in credible deficit reduction, resilient revenue mobilisation, and a decisive reorientation of spending toward capital formation, has strengthened macroeconomic stability and supported growth in the post-pandemic period. Importantly, this fiscal resilience reflects prudent fiscal policy choices and careful fiscal management.
"The government remains committed to fiscal consolidation without compromising growth. The fiscal deficit target of 4.4 per cent for the current FY 2026 is well on track, a feat recognised by 3 sovereign rating upgrades this financial year, " she noted.
The capital expenditure has risen by nearly 89 per cent since FY22, reaching a budgeted Rs 11.21 lakh crore in FY26. The effective capex has risen from 2.7 per cent (pre-pandemic average) to 3.9 per cent of the GDP (post-pandemic).
"We are building assets that serve as the economic arteries of an aspiring economy. The national highway network has expanded by nearly 60 per cent, rising from 91, 287 km in FY14 to 1.46 lakh km by FY26, while operational high-speed corridors have grown almost tenfold to 5, 364 km, sharply reducing freight bottlenecks, " the Finance Minister said.
Meanwhile, rail capacity creation has accelerated, with annual commissioning more than doubling over the last decade. Port infrastructure has expanded in tandem, with cargo handling increasing from 1, 052 MMT to 1, 602 MMT and total capacity reaching 2, 771 MMT, alongside a reduction in average container vessel turnaround time from 43.44 hours to 30.88 hours.
The strongest transformation is visible in inland water transport, where cargo movement has surged from 18 MMT in 2013–14 to 146 MMT in 2024–25, signalling a structural shift toward cheaper, greener, and more efficient freight logistics.
The Survey has also highlighted that cities succeed not only through infrastructure but through trust, predictability, and civic cooperation.
"When rules are clear, services reliable, and public spaces respected, growth becomes easier to live with — and easier to sustain. We are committed to building the cities that bring ‘ease of living’ for our citizens, " the Finance Minister said.
She further stated that the Survey 2025-26 highlights the sharpest reduction in headline inflation (1.8 per cent) among major economies in 2025. India recorded an inflation rate of 1.7 per cent between April-December 2025, driven by a contraction in food prices of major commodities like vegetables and pulses.
"Timely trade policy has calibrated the consumer and farmer interests simultaneously -- customs duty on crude edible oils was reduced to 10 per cent to moderate prices, while a 30 per cent import duty on yellow peas supported domestic producers ahead of the sowing season, " FM Sitharaman mentioned.