Why in News?

• The Economic Survey 2025–26, tabled in Parliament by the Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, reflects on India’s post-Covid economic resilience amid rising global geopolitical and economic uncertainties.
• The Preface departs from conventional macroeconomic commentary and makes a strong normative case for transforming India into an “entrepreneurial state” capable of navigating uncertainty while pursuing the goal of Viksit Bharat.

What’s in Today’s Article?

• Reconfigured Economic Survey
• Core Theme - Entrepreneurial Policy Making under Uncertainty
• Early Signals of the Entrepreneurial State
• India’s Macroeconomic Resilience in a Turbulent World
• Global Headwinds vs India’s Aspirations
• Three Possible Global Scenarios for 2026
• India’s Relative Strengths
• Running a Marathon and Sprint Simultaneously
• Challenges
• Way Forward
• Conclusion 

Reconfigured Economic Survey:

• Structural changes:
  • The Economic Survey 2025-26 expanded to 17 chapters - indicating greater depth and breadth.
  • Chapters are rearranged based on national priority and relevance, not convention.
• Special essays on:
  • Evolution of Artificial Intelligence
  • Quality of life in Indian cities
  • State capacity, private sector and households in achieving strategic resilience and strategic indispensability. 

Core Theme - Entrepreneurial Policy Making under Uncertainty:

• Fundamental shift in the role of the State: From risk-averse, compliance-driven governance to risk-structuring, capability-driven and adaptive governance.
• Key features of an ‘Entrepreneurial State’:
  • It acts before certainty emerges, structures and manages risk, rather than avoiding it.
  • It will learn from systematic experimentation, and correct course without policy paralysis.
• Significance: This vision is presented as practical and already unfolding, not merely aspirational.

Early Signals of the Entrepreneurial State:

• The Survey highlights ongoing initiatives as evidence of this shift. For example,
  • Mission-mode platforms (e.g., Semiconductors, Green Hydrogen).
  • Public procurement reforms enabling first-of-a-kind domestic innovation.
  • State-level deregulation compacts, replacing inspection-based controls with trust-based compliance.
• These initiatives mark a transition from regulation to capability building.

India’s Macroeconomic Resilience in a Turbulent World:

• Despite the Covid-19 shock, US tariffs imposed (in April 2025), rising global fragmentation, India has demonstrated strong macroeconomic fundamentals.
• For example, expected real GDP growth of over 7% in 2025–26, with momentum continuing into the next year.
• However, the Survey identifies a “Paradox of 2025”:
  • India’s strongest macroeconomic performance in decades coincides with a global system that no longer rewards macroeconomic prudence with currency stability, capital inflows, or insulation from shocks.

Global Headwinds vs India’s Aspirations:

• India, with 145 crore people, aims to become a high-income country within a generation, within a democratic framework—a path with no ready-made global template.
• The Survey notes:
  • Retreat of the global dominant power from earlier commitments.
  • Rising trade frictions, geopolitical rivalries, and economic nationalism.
• These headwinds can become tailwinds only if the State, private sector, and households align and commit to sustained effort.

Three Possible Global Scenarios for 2026:

• Managed disorder:
  • Less coordinated world
  • Higher risk aversion
  • Integrated yet distrustful global system
  • Narrower margin of safety
• Disorderly multipolar breakdown:
  • Intensified strategic rivalry
  • Coercive trade, sanctions, supply chain realignments
  • Greater trade-offs between autonomy, growth, and stability
• Systemic shock cascade (low probability, high impact): Financial, technological, and geopolitical shocks amplify each other - potentially worse than the 2008 Global Financial Crisis.

India’s Relative Strengths:

• India is better placed than many countries due to:
  • Large domestic market
  • Less financialised growth model
  • Strong foreign exchange reserves
  • Credible strategic autonomy
• Yet, a common risk across all scenarios remains:
  • Disruption of capital flows
  • Sustained pressure on the rupee

Running a Marathon and Sprint Simultaneously:

• External sector imperative: Rising incomes will inevitably lead to rising imports. Therefore, India must generate export earnings, and foreign investor confidence.
• Policy stance for 2026:
  • Focus on supply stability, resource buffers, diversification of routes and payment systems.
  • Adopt strategic sobriety, not defensive pessimism.
• India must “India must run a marathon and sprint simultaneously, or run a marathon as if it were a sprint”—maximising growth while absorbing shocks.

Challenges:

• India’s central challenge - Policy and process reforms:
  • The Survey underlines that policy reforms are necessary, and process reforms are even more critical.
  • Why? Processes govern state–citizen interaction. They determine whether policy intent succeeds or fails.
  • Positive signals: State-led deregulation and smart regulation, and shift from control to enabling governance.
• Other challenges:
  • Global geopolitical fragmentation and economic coercion
  • Capital flow volatility and exchange rate pressures
  • Need for rapid institutional adaptation
  • Balancing growth with resilience and stability

Way Forward:

• Integrating 3 pillars for Viksit Bharat:
  • The Survey integrates three pillars: state capacity, societal participation, and deregulation.
  • In a democracy, the State remains the principal development agent, but must upskill and reskill, be mentally prepared for a hostile and uncertain global terrain, and adapt to the reality that old rules no longer apply.
• Strategic opportunity amid global crises:
  • Potential global crises may open space for India to shape the emerging global order, and enhance strategic influence and indispensability.
  • This demands the most agile, flexible and purposeful governance since Independence.
• Delayed gratification over short-term fixes:
  • The Survey advocates resilience over quick wins, innovation and persistence over short-term pressure management.
  • This will help India to stay committed to Viksit Bharat amid prolonged global churn.
• Other suggestions:
  • Deepen entrepreneurial governance.
  • Strengthen process reforms and deregulation.
  • Build buffers, redundancy, and liquidity.
  • Align state, market, and society towards long-term national goals.
  • Invest in state capacity and institutional learning.

Conclusion:

• The Economic Survey 2025–26 Preface redefines India’s economic strategy for an era of uncertainty.
• It calls for an entrepreneurial, adaptive and resilient State that can sustain high growth while absorbing shocks.
• In a volatile global order, India’s path to Viksit Bharat lies not in quick fixes, but in patient resilience, relentless innovation, and strategic sobriety—running the marathon of development at the pace of a sprint.

About Shettihalli Wildlife Sanctuary:

• It is located in the Shimoga District of Karnataka.
• The Tunga Anicut Dam is situated within the sanctuary.
• The Mandagadde Bird Sanctuary is also a part of the Shettihalli Wildlife Sanctuary.
  • It is a popular bird nesting site situated on an island in the midst of the Tunga River.
• Vegetation:
  • It is mainly covered by tropical evergreen and semi-evergreen forests.
  • The eastern and central parts are mostly covered by dry and moist deciduous forests, while the western parts have semi-evergreen forests.
• Flora: Major tree species include silver oak, teak, Indian Thorny Bamboo, Calcutta Bamboo, Asan, Tectona Grandis, Sweet Indrajao, Amla, etc.
• Fauna:
  • It houses mammals like Tiger, Leopard, Wild Dog, Jackal, Gaur, Elephant, Sloth Bear Sambar, Spotted Deer, Wild Pig, Common Langur, Bonnet Macaque, etc.
  • Birds include Hornbills, Kingfishers, Bulbuls, Parakeets, Doves, Pigeons, Babblers, Flycatchers, Munias, Swallows, Woodpeckers, Peafowl, Jungle fowl and Partridges. 

About Phosphorus :

• It is a highly reactive nonmetallic chemical element of the nitrogen family (Group 15 [Va] of the periodic table).
• It has the symbol P and atomic number 15.
• The two main forms of phosphorus are white phosphorus and red phosphorus.
  • White phosphorus is a poisonous waxy solid, and contact with skin can cause severe burns. It glows in the dark and is spontaneously flammable when exposed to air.
  • Red phosphorus is an amorphous, non-toxic solid.
• Uses:
  • White phosphorus is used in flares and incendiary devices.
  • Red phosphorus is in the material stuck on the side of matchboxes, used to strike safety matches against to light them.
  • By far the largest use of phosphorus compounds is for fertilisers.
    • Ammonium phosphate is made from phosphate ores.
    • The ores are first converted into phosphoric acids before being made into ammonium phosphate.
  • Phosphorus is also important in the production of steel.
  • Phosphates are ingredients in some detergents but are beginning to be phased out in some countries.
    • This is because they can lead to high phosphate levels in natural water supplies, causing unwanted algae to grow.
  • Phosphates are also used in the production of special glasses and fine chinaware.
• Biological Role:
  • The main function of phosphorus is in the formation of bones and teeth.
  • It plays an important role in how the body uses carbohydrates and fats.
  • It is also needed for the body to make protein for the growth, maintenance, and repair of cells and tissues.
  • Phosphorus also helps the body make ATP, a molecule the body uses to store energy.
• Occurence:
  • Because phosphorus cannot naturally occur in the environment, it is typically mined from phosphates.
  • Phosphates typically accumulate at the bottom of rivers and lakes, within different rocks, and in large mineral deposits around the world.
  • Natural phosphates exist inside every living thing. They comprise DNA, RNA, ATP, phospholipids, and other compounds crucial for cellular function and, by extension, life.
  • The main food sources are the protein food groups of meat and milk, as well as processed foods that contain sodium phosphate.

About Shiveluch Volcano:

• It is one of the largest and most active volcanoes located on Russia's Kamchatka Peninsula, one of the most intense volcanic regions in the world.
• It is a stratovolcano—a steep-sloped volcano composed of alternating layers of solidified ash, hardened lava, and volcanic rocks.

Key facts about Kamchatka Peninsula:

• It lies in far eastern Russia, between the Sea of Okhotsk on the west and the Pacific Ocean and Bering Sea on the east.
• It is one of the world’s most concentrated areas of geothermal activity.
• The Kuril Island chain runs from the southern tip of the peninsula to a short distance from Japan’s northern Hokkaido Island.
• The volcanoes of Kamchatka have been a UNESCO World Heritage Site since 1996. 

About Nipah Virus:

• Nipah virus (NiV) is a zoonotic virus (it is transmitted from animals to humans) and can also be transmitted through contaminated food or directly between people.
• Fruit bats of the Pteropodidae family are the natural hosts of Nipah virus.
• In infected people, it causes a range of illnesses from asymptomatic (subclinical) infection to acute respiratory illness and fatal encephalitis.
• NiV infection is one of the priority diseases on the World Health Organization (WHO) R&D Blueprint because of its epidemic or pandemic potential.
• Symptoms:
  • Infected people initially develop symptoms including fever, headaches, myalgia (muscle pain), vomiting and sore throat.
• Treatment:
  • There are no specifically approved treatments or vaccines available for NiV infection, either for people or animals.
  • Intensive supportive care is recommended to treat severe respiratory and neurologic complications.

About Rusty-Spotted Cat:

• It is the world’s smallest and lightest known cat.
• Scientific Name: Prionailurus rubiginosus.
• Distribution:
  • The species has been recorded in dry deciduous and semi-deciduous forests in northern and central India, Western Ghats, Kachchh and Rajasthan, and peninsular India, besides Nepal and Sri Lanka.
• Conservation Status:
  • IUCN Red List: Near Threatened.

About Sea of Japan:

• Location: The Sea of Japan, or East Sea, is a marginal sea of the western Pacific Ocean.
• It is bound by Japan and Sakhalin to the east and by mainland Russia, North Korea, and South Korea to the west.
• Connections
  • It is connected with the East China Sea via the Tsushima and Korea straits and with the Okhotsk Sea in the north by the La Perouse and Tatar straits.
  • In the east, it is connected with the Inland Sea of Japan via the Kanmon Strait and the Pacific Ocean by the Tsugaru Strait.
• Major Ports:
  • Russia: Vladivostok, Sovetskaya Gavan, Nakhodka, Alexandrovsk-Sakhalinsky, and Kholmsk. 
  • North Korea: Hamhung, Chongjin, and Wonsan.
  • Japan: Niigata, Tsuruta, and Maizuru.

About JALAJ Livelihood Centres:

• It is a joint initiative of the Namami Gange Mission and the Wildlife Institute of India (WII).
• Aim: It is aimed at integrating river conservation with sustainable livelihoods in the Ganga river basin.
• Jalaj is based on the circular economy model where the local people will be trained in sustainable livelihood practices and mobilized to contribute to biodiversity conservation and clean river ecosystem.
• Features of JALAJ Livelihood Centres:
  • The initiative promotes community ownership of conservation efforts while creating dignified livelihood opportunities, with a special focus on women’s participation.
  • It is a concept to establish symbiotic linkages between river and people.
  • The Jalaj sites are established at different locations in the Ganga basin represent the culture and communities indigenous to that area.
  • These are established as holistic Centres of overall community well-being, conservation education and livelihood trainings.
  • It will have facilities for dissemination of the information on aquatic biodiversity conservation, livelihood training and sale centres for the products developed by livelihood trainees.

About Deuteron:

• A deuteron is a stable isotope of hydrogen with a nucleus containing one proton and one neutron.
• It is denoted by the symbol “²H” or “D”.
• It is found in small amounts in natural water and in the atmosphere of Jupiter and Saturn.
• Applications of Deuteron:
  • It is used in the production of heavy water, which is used as a moderator in nuclear reactors.
  • It is used in the production of deuterium, which is used as a fuel in fusion reactors.
  • It is used in the production of tritium, which is used in nuclear weapons.

About Scabies:

• It is a contagious parasitic skin infestation that occurs in all parts of the world.
• Scabies is caused by a tiny bug, the Sarcoptes scabiei mite that burrows under the skin, causing an itchy rash.
• It is more common in hot, tropical countries like India.
• Transmission: Scabies spreads easily in crowded conditions and generally through close, direct contact with an infected person, and sometimes through shared clothing and bedding.
• Symptom: The most common symptom is an intense itchy rash that may become worse at night.
• Treatment: Treatment of scabies is usually with topical creams and oral medication. 
• The World Health Organization classified scabies as a neglected tropical disease due to its significant burden on impoverished and vulnerable populations.