MSMEs underpin the economy; credit growth and SRI Fund investments bolster scaling and global supply chain participation.
MSMEs are central to India's industrial economy, driving manufacturing, exports, employment, and GDP; MSME credit was the primary driver of industrial credit growth in H1FY26, outpacing large industry, supported by policy interventions. Financial and policy measures include expansion of SME public markets, SRI Fund equity investments in hundreds of MSMEs, and institutionalised innovation and IPR support. The Survey advocates calibrated deeper integration of MSMEs into global supply chains and alignment with the national manufacturing mission and supportive drivers-advanced manufacturing, infrastructure, capital markets, and digital governance-to pursue job rich industrialisation.

India's services sector is driving growth with rising exports, concentrated services FDI, and policy focus on digital and infrastructure gaps.
The Survey finds services to be the principal growth engine, with 9.1% GVA growth in FY26 and a marked rise in services exports and services FDI, concentrated in digital, professional and infrastructure linked services. It highlights IT/ITeS, data centres, media and entertainment, tourism, space and ocean services as key frontiers, notes regional concentration and rising employment elasticity, and recommends reskilling, digital diffusion, supportive innovation policy, infrastructure upgrades and public private commercialisation to sustain and scale services led growth.

India promotes decentralised, frugal, application-driven AI with risk-based regulation and shared infrastructure for local solutions.
India's framework prioritises decentralised, application-driven and frugal AI over large frontier models, promoting small, task-specific models, open interoperable systems, and shared infrastructure. The National AI Mission will scale local solutions through standards, funding and governance while preserving local creativity. Regulatory design centres on proportionate, risk-based regulation, trusted data flows for domestic value capture, and institutional measures including an AI Economic Council and an AI Safety Institute, with sequencing of coordination, capacity building and binding policy to avoid premature lock-in.

India's external sector shows strong remittances, rising FDI and robust forex reserves supporting external resilience.
India's external sector is resilient: the Current Account Deficit moderated to USD 15 billion (0.8% of GDP) in H1 FY26, remittances reached USD 135.4 billion in FY25, and capital inflows remained sizeable at 18.5% of GDP. Foreign exchange reserves increased to USD 701.4 billion, covering around 11 months of goods imports and about 94% of external debt, while external debt stood at USD 746 billion with an external debt to GDP ratio near 19.2%.

India's exports show resilience with record services, diversified merchandise growth and expanding FTAs supporting integration into global value chains.
India's external sector showed resilience with record merchandise and services exports in FY25. Merchandise exports reached USD 437.7 billion (non petroleum USD 374.3 billion) with strong growth in electronics, pharmaceuticals, telecom instruments and automobiles; agricultural and pharmaceutical exports posted significant multi year gains. The Production Linked Incentive scheme materially supported export growth in targeted manufacturing sectors even as merchandise imports rose for intermediate inputs and capital goods. Services exports hit USD 387.6 billion, producing a record services trade surplus and reflecting expansion of Global Capability Centres and deeper trade diversification.

Agriculture drives inclusive growth: allied sectors and horticulture are key engines strengthening farm incomes and livelihoods.
The Economic Survey states agriculture is central to achieving Viksit Bharat, reporting a five year average growth of 4.4% and a decadal growth of 4.45% (FY16-FY25), driven mainly by livestock (7.1%) and fisheries (8.8%), while crops grew 3.5%. Foodgrain production hit 3,577.3 LMT in AY 2024-25. Horticulture, making up about 33% of agricultural GVA, rose from 280.70 million tonnes (2013-14) to 367.72 million tonnes (2024-25), and allied sectors are highlighted as key contributors to farm incomes and rural livelihoods.

Doubling farmers' income through productivity gains, mission mode schemes, expanded edible oil and pulse self sufficiency, and scaled crop insurance.
The Economic Survey sets a mission mode policy framework to double farmers' income by improving productivity and deploying inputs, technology, market support and insurance. Key programmes include the National Food Security and Nutrition Mission, National Missions on Edible Oils targeting near 70 million tonnes by 2030-31, the Mission for Atmanirbharta in Pulses, the Prime Minister Dhan Dhaanya Krishi Yojana for 100 aspirational districts from FY26, and expanded crop insurance under PMFBY covering 4.19 crore farmers in 2024 25.

Agricultural policy expands quality seeds, irrigation, mechanisation, market support, price support and credit to boost productivity.
Policy measures scaled input quality, irrigation, soil health, mechanisation, market infrastructure, price support and credit to raise productivity and farmer resilience. SMSP recorded 6.85 lakh Seed Villages and 1,649.26 lakh quintals of quality seed; a National Mission on High Yielding Seeds is announced. Micro irrigation subsidies increased irrigated area share to 55.8%. Soil Health Cards and integrated nutrient management accompany fertiliser reforms. Mechanisation expanded via 25,689 Custom Hiring Centres and infrastructure schemes plus AIF financing. Market platforms (e NAM) and 10,000 FPOs were expanded. MSPs and PM KISAN disbursements and strengthened credit (KCC, MISS) support incomes and investment.

State agricultural governance reforms use digital land titles, market platforms, irrigation expansion and farmer databases to boost productivity.
State measures adopt geospatial resurvey and tamper proof digital land titles to resolve disputes; digital market platforms enabling direct MSP procurement to improve price realisation and payment transparency; expanded irrigation and solar pump schemes alongside strengthened groundwater regulation for supply management; and unified farmer databases plus GIS based climate smart tools to support DBT, procurement and farm level planning.

Rural employment statutory overhaul aligns the scheme with Viksit Bharat goals, tightens accountability, and mandates quicker wage payments.
The Economic Survey finds MGNREGS has structural limits and presents the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 as a legislative overhaul that reorients rural employment toward accountability, infrastructure outcomes and income security. Key operative measures include weekly or fortnightly wage disbursements; raising the administrative expenditure ceiling from 6% to 9% for capacity building; decentralised planning via Viksit Gram Panchayat Plans with GPs implementing at least half the work by cost; aggregation of assets into a National Rural Infrastructure Stack; and strengthened transparency through central investigatory powers, GPS-enabled monitoring, mandatory social audits and normative funding with cost-sharing.

Rural infrastructure: expansion of roads, housing, tap water and digital connectivity achieving extensive nationwide coverage.
Rural infrastructure expansion comprises PMGSY road works across three phases with extensive sanctioned and completed roads and bridges; PMAY-G targets pucca housing for eligible rural households with large-scale sanctions and completions; JJM has materially increased household tap-water coverage through state partnerships; and technology initiatives (SVAMITVA, drone distribution, and near-complete digitisation of Record of Rights under DILRMP) underpin connectivity, property documentation, and digital service delivery.

Inclusive growth: poverty rates fell and social protection coverage expanded while social services expenditure grew at 12% CAGR in India.
The commentary records measurable poverty reduction-5.3% extreme poverty (2022-23) under the revised International Poverty Line and Tendulkar-based estimates falling to 2.3% (2023-24)-attributed to income support, labour regulation, education access, and redistributive interventions. It notes expansion of social protection systems coverage from 22% (2016) to 64.3% (2025), near-universal access to water, electrification, and sanitation, and a 12% compound annual growth rate in general government social services expenditure (FY22-FY26), with education and health expenditure rising at 11% and 8% CAGRs respectively.

Indian labour market sees falling unemployment as skilling, digital platforms and expanded social protection widen opportunities.
The Economic Survey links falling unemployment and rising labour participation to government skill initiatives, digital platforms like the National Career Service and e Shram, and structural reforms, while presenting the four consolidated Labour Codes as a framework to streamline regulation, extend social security (including for gig workers), and require employer coordination and digital readiness to catalyse job growth.

Skilling India expands future-skills courses, upgrades ITIs, and scales apprenticeships to link training with employer demand.
NSQF-compliant training now includes 169 trades with 31 future-skills courses delivered via ITIs and National Skill Training Institutes; the National Scheme for Upgradation of ITIs will upgrade 1,000 government ITIs (200 hubs, 800 spokes) with smart classrooms, modern labs and industry-aligned courses. PMKVY 4.0 embeds industry-developed NSQF job roles and employer-based delivery, while expanded apprenticeship schemes have engaged over 43.47 lakh apprentices across 51,000 establishments and leverage integrated digital platforms for real-time monitoring of training and employment outcomes.

Education: NEP reforms enable credit portability, flexible entry-exit, industry links, and foreign campuses with 100% FDI.
The summary outlines NEP-led reforms and regulatory instruments that expand access and quality across schooling and higher education, emphasising Early Childhood Care and foundational literacy, vocational integration, and assessment reforms. In higher education, the National Credit Framework and Academic Bank of Credit enable credit portability and flexible entry-exit pathways, supported by capacity schemes and a national research foundation. Industry-academia integration and regulatory measures permitting twinning programmes, foreign campuses, and 100 per cent FDI are identified as drivers of internationalisation and workforce alignment.

Healthy population: survey urges digital health expansion, obesity and UPF controls, mental health services and gaming regulation.
The Survey documents major declines in maternal, neonatal and under five mortality and stresses integrating public investment with digital platforms (hospital information systems, Ayushman Bharat Digital Mission, e Sanjeevani) to expand access and evidence based policymaking. It identifies obesity from ultra processed foods and youth digital addiction as emergent threats, endorses multi sectoral nutrition and lifestyle interventions and regulatory responses including school guidelines, the Pragyatah framework, Tele MANAS services, SHUT clinic care models, and the Online Gaming (Regulation) Act, 2025, while urging AI enabled surveillance and offline youth hubs.

Pension and insurance reforms expand coverage through NPS e-Shramik, APY outreach, and insurance digitization with FDI boost.
Rapid expansion of the National Pension System and complementary schemes, aided by the NPS e-Shramik model and partnerships with farmer groups and MSMEs, targets inclusion of informal, gig and rural workers through simplified onboarding, digital KYC, flexible contributions and outreach. The insurance sector's shift to a principle based regulatory framework and the Sabka Bima, Sabki Suraksha Act, 2025 aim to digitise distribution, increase FDI limits, and address a low penetration, high cost distribution model, with health insurance now accounting for 41% of non life premium and a nationwide distribution network supporting outreach.

India's urban policy: require million-plus cities to adopt statutory 20-year spatial and economic plans with transport, housing, and land-value capture.
The Survey proposes statutory 20-year City Spatial and Economic Plans for every million-plus city, updated every five years, mandating three non-negotiable elements: a transport network plan, a housing supply plan with annual unit targets, and a land-value capture framework linked to infrastructure corridors. It pairs these planning mandates with finance mechanisms such as the Urban Infrastructure Development Fund, recommends finance-first e-bus deployment, Transit-Oriented Development and value capture around stations, and calls for clearer assignment of mandates and insulated routine enforcement to improve urban system performance.

Tele-density reaches 86.76% and 5G now in 99.9% districts nationwide; DPI, water and space capabilities expanded.
Telecommunication expansion raised tele-density to 86.76% and 5G is available in 99.9% of districts, while information technology capacity is growing to support cloud, AI, IoT and 5G. Rural water access under the Jal Jeevan Mission exceeds 81% of households, and water-resources programs and registers are being advanced. The space sector operates 56 active assets, has increased private-sector participation, and achieved autonomous satellite docking capability, underscoring a policy focus on digital public infrastructure, resilient water management and advanced space capabilities.

Swadeshi strategy proposes disciplined indigenisation with a three tier framework and input cost reduction to boost strategic resilience.
The Economic Survey proposes a disciplined Swadeshi embodied in a dynamic three-tiered framework for indigenisation-critical vulnerabilities, economically feasible strategic capabilities, and low urgency/high cost items-paired with a National Input Cost Reduction Strategy to ensure productivity enhancing investment, export orientation, advanced manufacturing stress testing, and institutional reforms that enable progression from resilience to strategic indispensability.