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Economic Survey 2025-26 Backs Deregulation, Sets Stage for Budget 2026-27

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) states the Economic Survey 2025-26 offers a balanced appraisal of India's economy against global uncertainty. It highlights the survey's emphasis on shifting to trust-based, outcome-oriented regulation, aligning with the chamber's advocacy for reduced compliance burdens. The survey forecasts robust GDP growth and a moderating fiscal deficit, while linking job creation to productivity gains and enterprise scaling. ASSOCHAM hopes the upcoming Union Budget will institutionalize these reform priorities to boost investment and competitiveness.

Key Points: Economic Survey 2025-26: Focus on Deregulation & Growth

  • Focus on trust-based regulation
  • Robust 7.4% GDP growth forecast
  • Fiscal deficit moderating to 4.8%
  • Trade pacts to boost exports & investment
2 min read

Survey provides robust analytical backdrop for Union Budget 2026-27: ASSOCHAM

ASSOCHAM says the Economic Survey provides a robust backdrop for Budget 2026-27, emphasizing regulatory quality, state capacity, and sustained growth.

"The Survey's focus on shifting from inspection-based controls to trust-based, outcome-oriented regulation closely aligns with ASSOCHAM's long-standing advocacy - Nirmal Kumar Minda"

New Delhi, Jan 29

A key message emerging from the Economic Survey 2025-26 is the importance of regulatory quality, state capacity, and sustained deregulation as enablers of medium-term growth, the Associated Chambers of Commerce and Industry of India said on Thursday.

The Survey offers a balanced and realistic appraisal of India's macroeconomic conditions, investment trends, labour market developments and external sector performance, set against a backdrop of global uncertainty, said the apex industry chamber.

"The Survey's focus on shifting from inspection-based controls to trust-based, outcome-oriented regulation closely aligns with ASSOCHAM's long-standing advocacy for rationalisation of compliances, reduction of regulatory overlap and faster, time-bound approvals across central and state jurisdictions," ASSOCHAM President Nirmal Kumar Minda said.

The chamber noted that the Survey provides a robust analytical backdrop for the forthcoming Union Budget 2026-27 and expressed hope that the Budget will further institutionalise these reform priorities to support investment, competitiveness and job creation.

Besides, recent agreements with the European Union, the UK, and the EFTA are expected to strengthen India's merchandise and services exports, while supporting higher investment flows and deeper integration with global markets, it noted.

Some of the welcome observations of the Economic Survey include India's real GDP growth in FY25, which is expected to be around 7.4 per cent, the moderation of the fiscal deficit to 4.8 per cent of GDP from its pandemic-era highs of 9.2 per cent, and steady job creation along with an expanding workforce.

The chamber said the Survey rightly links the translation of growth into quality employment with productivity gains, enterprise scaling and a reduction in operational frictions, particularly for MSMEs and manufacturing-led activities.

"While macroeconomic stability and public investment have provided a strong foundation, unlocking India's upgraded growth potential will require continued momentum on process reforms and deregulation that lower the cost of doing business and improve ease of enterprise," ASSOCHAM Secretary General Saurabh Sanyal said.

The Survey highlights the central role of public capital expenditure in sustaining growth momentum, alongside a revival in private investment. Gross fixed capital formation remained robust at 30 per cent of GDP, supported by infrastructure expansion and improved logistics.

- IANS

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Reader Comments

P
Priya S
The 7.4% growth projection is encouraging, but I really hope this translates to more quality jobs on the ground, especially for our youth. The focus on MSMEs is crucial.
R
Rohit P
Reducing regulatory overlap between centre and states is a massive need. One single window for all approvals would save so much time and cost. Good to see ASSOCHAM pushing for this.
S
Sarah B
As someone watching from outside, the fiscal deficit coming down to 4.8% is a very positive signal for foreign investors. The trade agreements with EU and UK should boost confidence further.
V
Vikram M
While the survey sounds good on paper, the real test is implementation. We've heard about 'ease of doing business' for years, but on the ground, getting a simple license can still be a headache. Hope this time it's different.
K
Kavya N
Infrastructure spending is great, but we need equal focus on skilling the workforce. Productivity gains won't happen if our workers aren't trained for modern manufacturing. The budget must allocate funds for this.

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