Edited by KK Dash
New Delhi, 29 January 2026: India’s Economic Survey 2025–26, tabled by Finance Minister Nirmala Sitharaman in the Lok Sabha, presents a clear picture of an economy that is confident, resilient, and future-ready, yet candid about the structural challenges that must be addressed to sustain high growth. Prepared under the guidance of Chief Economic Adviser (CEA) Dr. V. Anantha Nageswaran, the Survey sets the groundwork for the upcoming Union Budget and outlines the opportunities and risks shaping India’s next phase of development.
At its core, the Survey affirms that India continues to be among the world’s fastest-growing major economies. The government projects real GDP growth of 6.8% to 7.2% in FY27, powered by strong domestic demand, continued capex momentum, and a steady revival in private investment. India’s growth trajectory stands out even as many advanced economies grapple with fiscal tightening, slowing consumption, and geopolitical uncertainty.
But the Survey does more than highlight achievements, it carefully situates India in an increasingly conflict-ridden global environment where markets, supply chains, and technologies are now instruments of geopolitical influence. CEA Nageswaran notes that the meaning of Swadeshi has evolved: from ideological self-reliance to strategic resilience and indispensability. Citing examples such as China’s export restrictions and the European Union’s Carbon Border Adjustment Mechanism, the Survey argues that India must build domestic capacity not out of protectionism, but out of necessity. This reframing is one of the Survey’s most important conceptual contributions.
The government also acknowledges emerging risks, especially those linked to emerging technologies especially; the artificial intelligence revolution. The Survey warns of skilling gaps that could slow absorption of new and frontier technologies. Employers increasingly prioritise foundational and soft skills, engagement, adaptability, self-efficacy, over mere digital literacy. Sectors like eldercare, nursing, environmental restoration, and tool-and-die manufacturing remain understaffed, highlighting the need for a more balanced skilling strategy. The Survey also flags challenges in AI adoption: energy-hungry data centres, high capital requirements, hardware dependencies, and the need for data localisation to create domestic value. These structural risks will require coordinated responses involving all stakeholders including the industry, academia, and government.
Yet the overall message remains one of inclusive progress. The Survey highlights how public service delivery has strengthened across rural India. Over 81% of rural households now have tap water, more than 2.9 crore houses have been built, and 2.76 crore property cards have been issued under the SVAMITVA programme. Healthcare access has expanded through Ayushman Bharat, with over 42.7 crore cards issued and 1.8 lakh Ayushman Arogya Mandirs now operational. Learning outcomes too show measurable gains, with more children achieving grade-level proficiency in reading and mathematics.
Labour market indicators reinforce this positive trend. The overall unemployment rate has fallen from 6% in 2017–18 to 3.2% in 2023–24, while female labour force participation has recorded a remarkable rise from 23.3% to 41.7% during the same period. Monthly data suggests that unemployment eased further to 4.9% by December 2025, indicating continued labour market recovery.
The Survey also notes India’s deepening integration with global trade and investment flows. Services exports remain a major strength, powered by IT, consulting, GCCs, digital services, and tourism. India’s emergence as the largest destination for greenfield digital investments (USD 114 billion between 2020–24) reflects global confidence in its digital economy. The country’s strong forex reserves, lower external debt, and improved current account position provide additional buffers against global volatility.
The Economic Survey 2025–26 tells a story of an India that is not only growing rapidly, but maturing institutionally. It recognises challenges, AI-linked disruptions, global protectionism, skill shortages, and structural transitions, yet frames them as opportunities to push the growth frontier. As the nation awaits the Union Budget, the Survey offers a compelling blueprint: reform with resilience, growth with inclusion, and ambition backed by strategic clarity.
Leave Your Comment