India an “Oasis of Stability”
Addressing the media after the survey was tabled, Chief Economic Adviser Dr. V. Anantha Nageswaran described India as an “oasis of stability” in an increasingly volatile global economic landscape. He highlighted sustained growth momentum, resilient consumption, and strong macroeconomic fundamentals.
The Survey notes that India’s foreign exchange reserves have more than doubled over the past decade, providing a critical buffer against external shocks. Private final consumption expenditure is projected to grow at around 7 percent, building on last year’s strong performance.
Growth Outlook and Global Comparisons
The Economic Survey pegs India’s real GDP growth at 7.4 percent for FY26 and forecasts growth in the range of 6.8 to 7.2 percent for FY27. These estimates broadly align with projections by multilateral institutions such as the International Monetary Fund and the World Bank.
The Survey underscores that India’s growth trajectory remains stronger than the pre-Covid average of 6.4 percent, supported by regulatory reforms, public capital expenditure, and improving private sector investment sentiment.
Warning on AI-Led Global Financial Shock
In one of its starkest warnings, the Economic Survey flags a low-probability but high-impact global risk scenario linked to artificial intelligence-driven infrastructure and financial models. It cautions that unchecked technological overreach could trigger a systemic shock “worse than the 2008 global financial crisis.”
The Survey assigns a 10–20 percent probability to such a scenario, pointing to vulnerabilities in AI-heavy infrastructure sectors that depend on long-duration capital, narrow customer bases, and ambitious deployment timelines.
Call for Entrepreneurial Governance
The preface of the Survey calls for a fundamental shift in the role of the Indian state—from a regulator to an enabler. It argues that policymaking must become more entrepreneurial, adaptive, and capable of functioning under uncertainty.
“India must run a marathon and sprint simultaneously,” the document notes, stressing the need for speed in reforms while maintaining long-term economic resilience.
Parliament Proceedings
The Lok Sabha witnessed Question Hour proceedings before the Economic Survey was tabled, following which the House was adjourned till February 1. Prime Minister Narendra Modi earlier urged Parliament to engage in meaningful debate focused on empowering citizens and accelerating India’s development journey.
