The Economic Survey, tabled by union finance minister Nirmala Sitharaman on Friday, projects India’s gross domestic product (GDP) growth in the range of 6.3% to 6.8% for the financial year (FY) 2025-26.
The survey, which comprises 13 chapters, focuses on global threats to India’s trade and industries and highlights the potential of Indian agriculture, said an official.
The last chapter, dedicated to artificial intelligence (AI) and its disruptive impact on employment and the economy, stresses the need to make India “future ready”.
The Economic Survey said regulatory frameworks will need to be “revisited and amended” to ensure that use of AI aligns with societal values, balancing innovation with accountability and transparency.
The pre-Budget document cited an IMF paper to say that governments may be forced to tax incremental profit of corporates that use AI to replace labour.
With an entire chapter dedicated to ‘Labour in the AI era’, the Economic Survey noted that while impact of AI on labour will be felt across the world, the problem is magnified for India, given its size and its relatively low per capita income.
The survey stated China’s manufacturing prowess will continue to grow and soon control about 50% of global manufacturing. Hence, India must frame its policies accordingly. It added that China is inevitable for Indian manufacturing, at least for raw materials in three sectors—active pharmaceutical ingredients (API) for pharmaceuticals, components for solar power equipment including the EV ecosystem, and microchips.