Economic Survey 2025-26 Highlights: Fiscal Discipline & AI's Role in Job Market
It highlights the progress on PLI schemes and AI dividend, which could boost productivity in the services sector.
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The Economic Survey 2025-26, tabled in Parliament, projects India's GDP growth between 6.8% and 7.2% for the fiscal year 2026-27. The survey highlights India's fiscal discipline, with a fiscal deficit target of 4.4% for FY26. It emphasizes the importance of public investment and consolidation in achieving this target. The survey also notes the significant increase in capital spending, which rose from 12.5% to 22.6% of total central government expenditure between FY20 and FY25.
According to The Hindu, the central government's fiscal trajectory has earned three sovereign rating upgrades this year. The survey also highlights the role of the Special Assistance to States for Capital Expenditure/Investment (SASCI) in maintaining capital expenditure at around 2.4% of GDP. This has been achieved despite states overshooting their revenue deficit.
As reported by The Indian Express, the survey addresses concerns about AI-driven job losses, suggesting that the impact may be overstated. It argues that AI integration presents an opportunity to enhance productivity and create employment, provided systemic challenges are addressed through robust institutional frameworks.
The survey states, "The integration of AI into India's labour market presents an opportunity to enhance productivity, elevate workforce quality and create employment, provided systemic challenges are effectively addressed through robust institutional frameworks."
As highlighted by Financial Express, domestic demand continues to anchor growth, with Private Final Consumption Expenditure reaching its highest share in GDP since FY12 at 61.5%. The survey also notes the supportive monetary policy, with the RBI reducing the repo rate by 125 basis points since February 2025.
In addition, Hindustan Times coverage revealed that the survey emphasizes the "Goldilocks" scenario of robust growth and cooling prices. It highlights the progress on production-linked incentive schemes and the AI dividend, which could boost productivity in the services sector.
Further analysis showed that the survey outlines significant tax relief measures, including no income tax for individuals earning up to Rs 12 lakh. The Economic Survey also details the rollout of GST 2.0, aimed at simplifying the rate structure and reducing classification disputes.
Following reports, the survey indicates that India's foreign exchange reserves have increased to $701.4 billion as of January 2026, providing cover for 11 months of imports. The survey also highlights India's position as the world's largest recipient of remittances, with inflows reaching $135.4 billion in FY25.
As details emerged, the survey underscores the importance of climate finance and the need for robust domestic financial markets. It notes that climate action is now a core component of India's development strategy, with a focus on ensuring energy access, affordability, and security.
Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.