Basic HTML Version

|  | Table of Contents |  | View Full Version

Page 36 - The Indian EYE 020626
P. 36

    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.

                                                                   www.TheIndianEYE.com

| 31 32 33 34 35 36 37 38 39 40 41 |