Economic Survey 2026: Services Cushion, Manufacturing Secures India's Future
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Firstpost•31-01-2026, 10:59
Economic Survey 2026: Services Cushion, Manufacturing Secures India's Future
- •India's services sector has been a reliable economic shock absorber, generating foreign exchange and strengthening the balance of payments.
- •The Economic Survey 2025–26 highlights record total exports of $825.3 billion in FY25, driven primarily by a 13.6% YoY rise in services exports.
- •A services trade surplus of $188.8 billion contained the overall trade deficit to $94.7 billion, despite a widening merchandise trade deficit.
- •The Survey argues that while services provide macroeconomic stability, they do not compel the institutional and structural reforms that manufacturing-led growth demands.
- •Manufacturing requires reliable infrastructure (power, ports, logistics) and flexible labor, forcing governments to reform systems to maintain competitiveness.
Why It Matters: Services offer macroeconomic comfort, but manufacturing is crucial for India's long-term structural strength and export growth.
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