New Delhi:The Economic Survey, tabled by union finance minister Nirmala Sitharaman on Friday, projects India’s gross domestic product (GDP) growth in the range of 6.3% to 6.8% for the financial year (FY) 2025-26.
The survey, which comprises 13 chapters, focuses on global threats to India’s trade and industries and highlights the potential of Indian agriculture, said an official.
The last chapter, dedicated to artificial intelligence (AI) and its disruptive impact on employment and the economy, stresses the need to make India “future ready,” added the official.
Highlighting the key points of the survey, the official said that the survey stated China’s manufacturing prowess will continue to grow and soon control about 50% of global manufacturing. Hence, India must frame its policies accordingly. It added that China is inevitable for Indian manufacturing, at least for raw materials in three sectors—active pharmaceutical ingredients (API) for pharmaceuticals, components for solar power equipment including the EV ecosystem, and microchips.
The survey said that India must strengthen its agri-sector, which is its strength and growing by an average of 5%. India will become one of the key countries for global food security, said the official.
The survey further stressed the need to boost private investments through policy measures such as deregulation or minimum government and maximum governance, in other words, raising ease of governance, said the official, adding, “The idea is to allow companies to perform well.”
While seeking fiscal and administrative measures, the survey seems to be satisfied with India’s monetary policies that contained inflation, he said.
“Changing global landscape is increasingly challenging the external economy, and hence, we need to tread carefully,” explained the official.
The survey is concerned about net foreign direct investment (FDI) as outflow is more than inflows in terms of repatriation of profits and Indian investments abroad. “Currently, net FDI is positive,” he said.
Key solutions proposed by the survey include deregulation and ease of doing business, developing internal strength (like in agriculture), focusing on private investments, and policy measures to boost industrial strength. “The survey cautioned private firms against being stingy in offering salaries to their employees, because that is impacting consumption and ultimately impacting them negatively,” the official said.
The survey is, however, silent on disinvestment.