Private consumption hits decade-high share of GDP as low inflation and steady jobs support demand
Domestic demand continues to be the main pillar supporting India’s economic growth in FY26, with private consumption emerging as the strongest driver, according to the Economic Survey 2026.
Data cited in the survey show that the share of final private consumption expenditure (PFCE)—a proxy for consumption—in gross domestic product rose to 61.5 per cent in FY26, the highest level since FY12, underlining the central role of household spending in sustaining growth momentum.
“According to the FAE, the share of final private consumption expenditure (PFCE) in GDP rose to 61.5 per cent in FY26, the highest level since FY12. This is corroborated by the strong performance during the first half of the year, with PFCE growing by 7.5 per cent in H1 of FY26, and its share in GDP rising to 61.4 per cent,” the economic survey mentioned.
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Rajat Mishra leads business news coverage at Firstpost.com. An award-winning business journalist with over seven years of experience, he has worked across some of India’s leading newsrooms. His reporting spans the macroeconomy, financial markets, and India Inc., with a keen focus on decoding complex data and trends for readers.
An alumnus of the AJK Mass Communication Research Centre, Jamia Millia Islamia, Rajat can be followed on X at @RajatMishra9518. For story ideas and pitches, he can be reached at Rajat.Mishra@nw18.com. When not tracking numbers and policy moves, he enjoys wandering the Himalayas and exploring society beyond spreadsheets.
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