ASSOCHAM notes that Economic Survey 2025-26 provides a robust analytical backdrop for forthcoming Union Budget

Associated Chambers of Commerce & Industry of India (ASSOCHAM) has noted that the Economic Survey 2025-26 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, UK and EFTA are expected to strengthen India's merchandise and services exports, while supporting higher investment flows and deeper integration with global markets.

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, 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.

 

ASSOCHAM believes that 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. The Chamber noted the Survey's emphasis on strengthening manufacturing competitiveness, deepening integration into global value chains and reducing domestic cost disadvantages as essential for improving export resilience and supporting external sector stability.

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. It also revises India's potential growth rate upward in the range of 6.8 per cent to 7.2 per cent for FY27, reflecting gains from sustained public investment and structural reforms undertaken in recent years.

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