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BUSINESS & TRADE FEBRUARY 06, 2026 | The Indian Eye 36

Economic Survey Maps

India’s Path from Swadeshi to

Strategic Indispensability

The Economic Survey 2025–26 outlines a reform-driven growth story
anchored in manufacturing revival, human capital gains and macroeconomic stability, as India

positions itself as a globally indispensable economy.

OUR BUREAU es that extend India’s academic footprint globally.
Health indicators show parallel progress, with in-
New Delhi
fant mortality declining from 40 in 2013 to 25 in
ndia’s economic strategy is steadily evolving 2023, reflecting sustained improvements in public
from a focus on self-reliance to global indis- health delivery.
Ipensability, Union Finance Minister Nirmala Chief Economic Advisor V. Anantha Nag-
Sitharaman said on Thursday, underscoring the eswaran, presenting the macroeconomic assess-
Economic Survey’s vision of moving the world ment of the Survey, said India’s growth momen-
from “thinking about buying Indian” to “buying In- tum has strengthened alongside a marked easing
dian without thinking.” The Survey, tabled ahead of inflation. Real GDP growth, which averaged 6.4
of the Union Budget, presents a broad-based pic- per cent in the pre-COVID period, rose to 6.5 per
ture of manufacturing resurgence, strengthening cent in FY25 and is projected to accelerate to 7.4
state capacity, improving human capital and a mac- per cent in FY26. This expansion, he said, is being
roeconomic environment marked by firm growth supported by resilient private consumption and a
and easing inflation. sharp pickup in investment activity.
Highlighting key themes of the Survey, Sitha- Private consumption expenditure growth in-
raman said India’s journey from ‘Swadeshi’ to creased to 7.2 per cent in FY25 and is expected
‘Strategic Resilience’ and eventually to ‘Strategic to remain robust at around 7.0 per cent in FY26.
Indispensability’ rests on sustained deregulation Investment activity has gathered pace, with real
and a renewed push to strengthen domestic man- gross fixed capital formation growth rising to 7.8
ufacturing. In a post on social media platform X, Union Finance Minister Nirmala Sitharaman during the per cent in FY26, underscoring sustained capital
she said the government has focused on reducing Pre-Budget meeting with State Finance Ministers, in New formation across the economy.
regulatory burdens and improving competitive- Inflation pressures, meanwhile, have moder-
ness through reforms aligned with Prime Minister Delhi s (ANI Photo/Jitender Gupta) ated significantly. Headline CPI inflation fell from
Narendra Modi’s vision of Aatmanirbhar Bharat 6.7 per cent in FY23 to 1.7 per cent in FY26 up
and Make in India. ment’s push towards modernisation, medium- and to December, while core inflation also declined
According to the Survey, India’s industrial high-technology activities now account for 46.3 per sharply, reflecting improved supply conditions and
sector has undergone a structural shift from tra- cent of India’s total manufacturing value added. policy credibility. Fiscal consolidation has contin-
ditional manufacturing towards high-technology Beyond industry, the Survey places strong em- ued in parallel, with the fiscal deficit narrowing
capabilities, resilience and deeper global integra- phasis on human capital as the foundation of In- steadily from its pandemic peak of 9.2 per cent in
tion. Policy initiatives such as the National Lo- dia’s long-term growth strategy. Sitharaman noted FY21 to a budgeted 4.4 per cent in FY26.
gistics Policy and the Unified Logistics Interface measurable improvements in both education and The Survey also highlights stronger revenue
Platform (ULIP) have begun to streamline supply health outcomes. In school education, the focus performance, driven by a widening tax base and
chains, reduce transaction costs and enhance logis- has shifted decisively towards quality, with over improved compliance. The number of income tax
tics efficiency, directly improving the competitive- 13,000 PM SHRI schools now operating as mod- payers has increased sharply, while the quality of
ness of Indian manufacturing in global markets. el institutions. Post-pandemic learning recovery is government spending has improved through a
The manufacturing sector has shown a strong visible in foundational skills, with Grade III math- greater focus on capital expenditure.
revival in the current fiscal, recording growth of ematics proficiency rising to 65 per cent from 42 Crucially, the Survey underscores that state
7.72 per cent in the first quarter and 9.13 per cent per cent in 2021. Digital integration has accelerat- capacity is the bedrock of strategic resilience and
in the second quarter of FY 2025–26. This accel- ed through more than 4.6 crore APAAR IDs, en- the pathway to strategic indispensability. It notes
eration has been driven by production-linked in- abling seamless tracking of student progress across growing momentum in state-level deregulation,
centive (PLI) schemes and a series of structural the education system. reflecting cooperative and competitive federal-
reforms aimed at crowding in private investment. Higher education capacity has expanded ism, and stresses that resilience is co-created by
As of September 2025, PLI schemes have attract- alongside rising standards, with the Gross Enrol- the state, firms and citizens. This, Sitharaman
ed over Rs 2 lakh crore in actual investments, gen- ment Ratio increasing to 29.5. This expansion has said, resonates with the Prime Minister’s call for
erated incremental production worth more than been supported by the growth of premier institu- “Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka
Rs 18.70 lakh crore, and created employment for tions, including 23 IITs, 21 IIMs and 20 AIIMS, as Prayaas,” positioning India’s growth story as both
over 12.60 lakh people. Reflecting the govern- well as the establishment of international campus- inclusive and globally relevant.

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