Economic Survey Proposes Entrepreneurial State Model for India's Future Growth
In a significant policy recommendation, the Economic Survey has called for India to embrace an entrepreneurial state model to navigate the complexities of an uncertain global environment. This approach does not seek to replace market mechanisms but rather aims to enable the state to act decisively under uncertainty, structure risks effectively, and foster systematic learning processes.
Early Signals of Entrepreneurial Governance Already Visible
The survey highlights that India has already begun implementing elements of this entrepreneurial approach through various initiatives:
- Creation of mission-mode platforms in strategic sectors like semiconductors and green hydrogen
- Restructuring of public procurement systems to enable first-of-its-kind domestic innovation
- State-level deregulation compacts that replace inspection-based control with trust-based compliance mechanisms
"These are early signals of what an entrepreneurial state looks like when it moves from compliance to capability," the survey emphasized, noting this represents a fundamental shift in governance philosophy.
Protecting Officials and Enabling Bold Decision-Making
A crucial aspect of implementing this entrepreneurial state model involves protecting honest officials from vexatious prosecution. The survey noted that complex regulatory and economic decisions often face allegations of ill-motivation without clear evidence of quid pro quo arrangements.
"The law will need to weigh this without making economic decision-making risk-averse," according to the survey's analysis. This protection framework is essential for enabling officials to make bold, innovative decisions without fear of unwarranted legal consequences.
Building Capacity for Unprecedented Challenges
The Economic Survey projected that India will face unprecedented decisions in coming decades for which no established manuals exist. In such scenarios, outcomes will depend less on the initial correctness of choices and more on the state's capacity to learn, revise strategies, and act confidently under conditions of uncertainty.
The document emphasized that states operate through institutions, and institutions function through individuals. As policy challenges become increasingly complex, technology-driven, and expectation-intensive, the quality of public outcomes depends significantly on how civil servants interpret their roles, exercise judgment, and engage with citizens.
Transforming Public Administration for Modern Governance
As economies advance to higher development levels, the survey noted that the challenge for public administration evolves beyond merely expanding capacity. The fundamental concept of service itself requires repurposing to meet contemporary needs.
"Modern governance increasingly requires systems that can learn, adapt, and absorb change rather than merely comply with static rules," the survey stated. It added that large organizations, including governments, evolve more effectively when reform is approached as a process of absorption rather than disruption.
This entrepreneurial state model represents a paradigm shift from traditional bureaucratic approaches to a more dynamic, responsive governance framework capable of navigating the uncertainties of the 21st century global economy.
