{"id":84877,"date":"2026-01-30T12:01:16","date_gmt":"2026-01-30T06:31:16","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=84877"},"modified":"2026-01-30T12:46:14","modified_gmt":"2026-01-30T07:16:14","slug":"economic-survey-2025-26","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/economic-survey-2025-26\/","title":{"rendered":"Economic Survey 2025\u201326 Preface &#8211; Towards an Entrepreneurial State in an Uncertain World"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><b>Economic Survey 2025-26 Latest News<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Economic Survey 2025\u201326, tabled in Parliament by the Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, reflects on India\u2019s post-Covid economic <\/span><b>resilience <\/b><span style=\"font-weight: 400;\">amid rising global geopolitical and economic uncertainties.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Preface departs from conventional macroeconomic commentary and makes a strong normative case for transforming India into an \u201c<\/span><b>entrepreneurial state<\/b><span style=\"font-weight: 400;\">\u201d capable of navigating uncertainty while pursuing the goal of <\/span><b>Viksit Bharat<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Reconfigured Economic Survey<\/b><\/h2>\n<ul>\n<li><b>Structural changes:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The Economic Survey 2025-26 expanded to <\/span><b>17 <\/b><span style=\"font-weight: 400;\">chapters &#8211; indicating greater depth and breadth.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Chapters are rearranged based on national priority and relevance, not convention.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Special essays on:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Evolution of <\/span><b>Artificial Intelligence<\/b><\/li>\n<li><span style=\"font-weight: 400;\">Quality of life in Indian cities<\/span><\/li>\n<li><span style=\"font-weight: 400;\">State capacity, private sector and households in achieving strategic resilience and strategic indispensability.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Core Theme &#8211; Entrepreneurial Policy Making under Uncertainty<\/b><\/h2>\n<ul>\n<li><b>Fundamental shift in the role of the State: <\/b><span style=\"font-weight: 400;\">From risk-averse, compliance-driven governance to risk-structuring, capability-driven and adaptive governance.<\/span><\/li>\n<li><b>Key features of an \u2018Entrepreneurial State\u2019:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">It acts before certainty emerges, structures and manages risk, rather than avoiding it.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It will learn from systematic experimentation, and correct course without policy paralysis.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Significance<\/b><span style=\"font-weight: 400;\">: This vision is presented as practical and already unfolding, not merely aspirational.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Early Signals of the Entrepreneurial State<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Survey highlights ongoing initiatives as evidence of this shift. <\/span><b>For example<\/b><span style=\"font-weight: 400;\">,<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Mission-mode platforms (e.g., Semiconductors, Green Hydrogen).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Public procurement reforms enabling first-of-a-kind domestic innovation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">State-level <\/span><b>deregulation <\/b><span style=\"font-weight: 400;\">compacts, replacing inspection-based controls with trust-based compliance.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These initiatives mark a <\/span><b>transition <\/b><span style=\"font-weight: 400;\">from regulation to capability building.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>India\u2019s Macroeconomic Resilience in a Turbulent World<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Despite the Covid-19 shock, US tariffs imposed (in April 2025), rising global fragmentation, India has demonstrated strong macroeconomic fundamentals.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>For example<\/b><span style=\"font-weight: 400;\">, expected real GDP growth of over 7% in 2025\u201326, with momentum continuing into the next year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, the Survey identifies a \u201c<\/span><b>Paradox of 2025<\/b><span style=\"font-weight: 400;\">\u201d:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">India\u2019s strongest macroeconomic performance in decades coincides with a global system that no longer rewards macroeconomic prudence with currency stability, capital inflows, or insulation from shocks.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Global Headwinds vs India\u2019s Aspirations<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India, with <\/span><b>145 crore people<\/b><span style=\"font-weight: 400;\">, aims to become a high-income country within a generation, within a democratic framework\u2014a path with no ready-made global template.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Survey notes:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Retreat of the global dominant power from earlier commitments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Rising trade frictions, geopolitical rivalries, and economic nationalism.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These headwinds can become tailwinds only if the State, private sector, and households align and commit to sustained effort.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Three Possible Global Scenarios for 2026<\/b><\/h2>\n<ul>\n<li><b>Managed disorder:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Less coordinated world<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Higher risk aversion<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Integrated yet distrustful global system<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Narrower margin of safety<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Disorderly multipolar breakdown:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Intensified strategic rivalry<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Coercive trade, sanctions, supply chain realignments<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Greater trade-offs between autonomy, growth, and stability<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Systemic shock cascade (low probability, high impact): <\/b><span style=\"font-weight: 400;\">Financial, technological, and geopolitical shocks amplify each other &#8211; potentially worse than the <\/span><b>2008 Global Financial Crisis.<\/b><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>India\u2019s Relative Strengths<\/b><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">India is better placed than many countries due to:<\/span>\n<ul>\n<li><b>Large domestic market<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Less financialised growth model<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Strong foreign exchange reserves<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Credible strategic autonomy<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><span style=\"font-weight: 400;\">Yet, a common risk across all scenarios remains:<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">Disruption of capital flows<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Sustained pressure on the <\/span><b>rupee<\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Running a Marathon and Sprint Simultaneously<\/b><\/h2>\n<ul>\n<li><b>External sector imperative: <\/b><span style=\"font-weight: 400;\">Rising incomes will inevitably lead to rising imports. Therefore, India must generate export earnings, and foreign investor confidence.<\/span><\/li>\n<li><b>Policy stance for 2026:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Focus on supply stability, resource buffers, diversification of routes and payment systems.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Adopt <\/span><b>strategic sobriety<\/b><span style=\"font-weight: 400;\">, not defensive pessimism.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"font-weight: 400;\">India must \u201cIndia must run a marathon and sprint simultaneously, or run a marathon as if it were a sprint\u201d\u2014maximising growth while absorbing shocks.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Challenges<\/b><\/h2>\n<ul>\n<li><b>India\u2019s central challenge &#8211; Policy and process reforms:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The Survey underlines that policy reforms are necessary, and process reforms are even more critical.<\/span><\/li>\n<li><b>Why? <\/b><span style=\"font-weight: 400;\">Processes govern state\u2013citizen interaction. They determine whether policy intent succeeds or fails.<\/span><\/li>\n<li><b>Positive signals: <\/b><span style=\"font-weight: 400;\">State-led deregulation and smart regulation, and shift from control to enabling governance.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Other challenges:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Global geopolitical fragmentation and economic coercion<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Capital flow volatility and exchange rate pressures<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Need for rapid institutional adaptation<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Balancing growth with resilience and stability<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Way Forward<\/b><\/h2>\n<ul>\n<li><b>Integrating 3 pillars for Viksit Bharat:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The Survey <\/span><b>integrates <\/b><span style=\"font-weight: 400;\">three pillars: state capacity, societal participation, and deregulation.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">In a democracy, the State remains the principal development agent, but must <\/span><b>upskill and reskill<\/b><span style=\"font-weight: 400;\">, be mentally prepared for a hostile and uncertain global terrain, and adapt to the reality that old rules no longer apply.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Strategic opportunity amid global crises:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Potential global crises may open space for India to shape the emerging global order, and enhance strategic influence and indispensability.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">This demands the most agile, flexible and <\/span><b>purposeful governance<\/b><span style=\"font-weight: 400;\"> since Independence.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Delayed gratification over short-term fixes:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The Survey advocates resilience over quick wins, innovation and persistence over short-term pressure management.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">This will help India to stay committed to Viksit Bharat amid prolonged global churn.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Other suggestions:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Deepen entrepreneurial governance.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Strengthen process reforms and deregulation.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Build buffers, redundancy, and liquidity.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Align state, market, and society towards long-term national goals.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Invest in state capacity and institutional learning.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Conclusion<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Economic Survey 2025\u201326 Preface redefines India\u2019s economic strategy for an era of uncertainty.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It calls for an entrepreneurial, adaptive and resilient State that can sustain high growth while absorbing shocks.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In a volatile global order, India\u2019s path to Viksit Bharat lies not in quick fixes, but in patient resilience, relentless innovation, and strategic sobriety\u2014running the marathon of development at the pace of a sprint.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>Source: <\/b><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2220007&amp;reg=3&amp;lang=2\" target=\"_blank\" rel=\"nofollow noopener\"><b>PIB<\/b><\/a><\/p>\n<div class=\"ytb-video-wrapper\">\n        <div class=\"ytb-video-inner\">\n            <iframe \n                src=\"https:\/\/www.youtube.com\/embed\/Wu66P3clSAU\" \n                width=\"560\" \n                height=\"315\" \n                frameborder=\"0\" \n                allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" \n                allowfullscreen>\n            <\/iframe>\n        <\/div>\n    <\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Economic Survey 2025\u201326 reflects on India\u2019s post-Covid economic resilience amid rising global geopolitical and economic uncertainties. <\/p>\n","protected":false},"author":19,"featured_media":84884,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[5021,60,22,59],"class_list":{"0":"post-84877","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-economic-survey-2025-26","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/84877","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=84877"}],"version-history":[{"count":4,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/84877\/revisions"}],"predecessor-version":[{"id":84942,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/84877\/revisions\/84942"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/84884"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=84877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=84877"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=84877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}