Swami column: The Economic Survey says India can grow faster — but not on cash freebies
- Swaminathan Anklesaria Aiyar
- THE ECONOMIC TIMES Jan 30, 2026, 14:57 IST IST
Goldilocks has come of age, says the Economic Survey. India’s Goldilocks economy — defined as one with rapid GDP growth and low inflation — has averaged 6.5% growth for two decades. The survey makes bold to declare India has broken out of this mould into a 7% trend.
Despite crushing blows to the global architecture by US President Donald Trump, the survey is of the view that India’s growth in FY26 will end up at 7.4%, well above the 6.5% prediction of a year ago. India’s ability to exceed growth expectations quarter after quarter has emboldened a usually cautious chief economic adviser to blow his trumpet. He says total factor productivity is rising from 1.7 post-Covid to 1.9, and this higher productivity will enable India to overcome global headwinds in coming years.
Despite crushing blows to the global architecture by US President Donald Trump, the survey is of the view that India’s growth in FY26 will end up at 7.4%, well above the 6.5% prediction of a year ago. India’s ability to exceed growth expectations quarter after quarter has emboldened a usually cautious chief economic adviser to blow his trumpet. He says total factor productivity is rising from 1.7 post-Covid to 1.9, and this higher productivity will enable India to overcome global headwinds in coming years.
