India's economy is likely to continue its sluggish pace of growth next fiscal year weighed down by global risks, according to a finance ministry report that has called on states to pursue business reforms to boost economic activity.

Economic Survey predicts India's growth at 6.3-6.8% by 2025-26, emphasizing de-regulation, private sector participation, and energy transition.

India needs to grow around 8 per cent for a decade or two to achieve its Viksit Bharat dreams, the Economic Survey has asserted, at a time when the country’s growth showed weak progress in the first two quarters of the current financial year.

GDP growth rate of India is expected to be between 6.3% and 6.8% for the financial year 2025-26. The Economic Survey predicts a decline in food inflation in the last quarter of FY25, aided by seasonal vegetable price drops and the arrival of the kharif harvest.

India should leverage evolving global trade dynamics, such as greater protectionism, to accelerate its growth and enhance its presence in global trade, said the Economic Survey 2025, tabled in the parliament on Friday.

LIVE: The Economic Survey is a pre-budget document detailing the state of the economy over the last fiscal year.