The Economic Survey’s outlook emphasises aligning state, private sector, and citizens to navigate global headwinds, positioning India for Viksit Bharat by 2047 through sectoral synergies and resilience.
By Bijoy Patro
The Economic Survey 2025-26, tabled by Finance Minister Nirmala Sitharaman in Parliament today, underscores India’s robust economic trajectory amid global challenges, projecting FY27 GDP growth at 6.8-7.2 per cent. Prepared by chief economic adviser V Anantha Nageswaran, the 739-page document emphasizes reforms in key sectors like agriculture, environment, education, health, employment, and rural development to foster inclusive, sustainable progress. Despite US tariffs and geopolitical risks, India’s fundamentals remain strong, with the survey advocating strategic resilience through public-private-citizen partnerships.
Agriculture: Boosting Productivity and Incomes
India’s agriculture sector, supporting 46.1 per cent of the workforce while contributing nearly one-fifth of GDP, has grown at an average 4.4 per cent annually over the last five years. The survey highlights robust performance in allied activities like livestock (7.1 per cent growth) and fisheries (8.8 per cent), with foodgrain production reaching 357.73 million tonnes in 2024-25. Horticulture output surged to 362.08 million tonnes, surpassing foodgrains, driven by diversification into high-value crops.
Challenges include fragmented landholdings, low irrigation access, and uneven input quality, leading to stagnant yields in cereals and pulses. Government interventions like the Pradhan Mantri Krishi Sinchai Yojana and Krishonnati Yojana aim to enhance productivity through technology and infrastructure. Income support via PM-KISAN and MSP at 1.5 times production cost provide price certainty. The survey calls for sustainable practices to address fertilizer overuse’s impact on soil health, promoting organic alternatives and crop diversification for resilience.
Environment: Balancing Resilience and Mitigation
The survey positions climate action as integral to development, with adaptation central due to India’s vulnerability. Per capita emissions remain below global averages, but risks like extreme weather threaten livelihoods and infrastructure. State action plans on climate change integrate water security, urban resilience, and ecosystem restoration into growth strategies.
Mitigation efforts focus on renewables, energy efficiency, green hydrogen, and nuclear power, aligned with energy security. However, inadequate global capital flows hinder progress, calling for multilateral reforms and domestic financial strengthening. Environmental regulations are evolving to risk-based, trust-oriented frameworks, facilitating sustainable growth without compromising competitiveness. The survey warns of transition risks, advocating sequenced, pragmatic pathways over rapid decarbonization.
Education and Health: Enhancing Quality and Access
Education and health form human capital pillars, with the survey noting progress in literacy, enrolment, and infrastructure. School gross enrolment ration (School GER) stands at 95.4 per cent for preparatory stage, driven by NEP 2020’s focus on foundational literacy, vocational integration, and equity. Initiatives like PM SHRI (13,076 schools) and ULLAS (3.1 crore learners) promote access, while multilingual textbooks and digital platforms like DIKSHA foster inclusivity. (The ULLAS program opens new avenues for those who previously lacked access to education, making them proficient in essential skills.)
Health advancements include reduced infant/maternal mortality and expanded insurance via Ayushman Bharat. However, rising non communicable diseases, obesity, and digital addiction pose challenges. The survey highlights preventive care, behavioural changes, and good practices like community-driven obesity programmes. Emerging issues like screen-time overload require balanced approaches, with guidelines from CBSE and the health ministry’s Tele-MANAS helpline (over 32 lakh calls) addressing mental health.
Employment and Skilling: Getting It Right for Youth
With a workforce exceeding 56 crore, labour indicators show steady improvement: The Labour Force Participation Rate at 55.1 per cent, unemployment rate declining to 5.2 per cent in Q2 FY26. Job creation reached 8.7 lakh in Q2, with agriculture (42.4 per cent) and self-employment (55.8 per cent) dominant. The survey notes gender dimensions, with women favouring flexible models due to caregiving burdens.
Labour codes balance flexibility and rights, promoting formalization and worker welfare, the survey says, adding that gig workers’ protection is emphasized through social security and grievance mechanisms. Skilling is crucial for the demographic dividend, with vocational education at all levels to address mismatches. Initiatives like NEP’s skill integration aim to prepare youth for digital, green transitions, fostering mobility and productivity.
Rural Development: From Participation to Partnership
Rural transformation has driven poverty reduction, the survey document says, with multidimensional poverty falling to 11.28 per cent in 2022-23. The survey credits targeted interventions lifting millions, narrowing inequalities via education, health, and livelihoods. Social justice measures empower marginalized groups through affirmative action and technology.
Community-driven models like Bihar’s Saat Jeevikoparjan Yojana and Kerala’s poverty eradication showcase handholding for self-reliance. Social sector spending trends indicate rising investments in housing, security, and amenities, enhancing well-being. The survey advocates partnerships for sustainable rural growth, integrating local voices for inclusive progress.
The survey’s outlook emphasises aligning state, private sector, and citizens to navigate global headwinds, positioning India for Viksit Bharat by 2047 through sectoral synergies and resilience.
