New Delhi, Jan 29: The Economic Survey 2025-26 emphasizes the necessity for India to adopt “entrepreneurial policy making under uncertainty,” highlighting that the state must proactively address challenges rather than awaiting certainty.
The document recognizes the potential for the state’s transformation from a regulatory role to one that enables innovation, citing initiatives in sectors like semiconductors and green hydrogen as early signs of this shift.
Despite facing significant challenges, India’s economy has shown considerable resilience post-COVID, with expectations of sustained real growth above 7%.
The survey discusses the paradox of strong macroeconomic performance in a global landscape that no longer equates economic success with stability, as external geopolitical frictions pose risks to India’s ambitions.
It presents three potential global scenarios for 2026: continued political and economic turmoil, an intensifying strategic rivalry leading to trade coercion, and the risk of cascading shocks across multiple domains. Each scenario underlines the importance of India’s robust macroeconomic fundamentals and strategic autonomy, yet acknowledges the vulnerabilities it faces, especially concerning capital flows.
Additionally, to manage rising imports alongside domestic income growth, the Survey advocates for an economic strategy that balances supply stability and resource diversification. It underscores the imperative for India to “run a marathon and sprint simultaneously,” indicating the need for a dual approach of maximizing growth while enhancing shock absorption.
Lastly, the Survey stresses that India’s challenge lies not only in formulating effective policies but also in refining processes that maximize national resilience.
The ongoing deregulation and smart regulation initiatives are viewed as positive indicators of the state’s ability to adapt and support its mission for a developed India (Viksit Bharat). Overall, the Economic Survey presents an optimistic outlook contingent on comprehensive policy and process reforms.
