Economic Survey 2025-26 Proposes Entrepreneurial Government Model for India's Growth
The Economic Survey 2025-26 has put forward a groundbreaking proposal for the government to transform its traditional role and embrace an entrepreneurial mindset. Rather than merely functioning as a regulatory body that sets rules, the survey emphasizes that the government must actively participate as a problem-solving innovator and risk-taker in emerging economic areas. This significant shift aims to unlock India's growth potential during a period marked by geopolitical uncertainties and global supply-chain disruptions.
Redefining Government's Role in Economic Development
According to the survey, policymaking should be centered around an entrepreneurial spirit, with the government taking the lead in situations of uncertainty to shape the economic trajectory. Under this innovative approach, the state would:
- Act proactively before certainty emerges in markets
- Structure economic risks rather than avoiding them entirely
- Learn systematically from experimentation and pilot projects
- Correct course swiftly without bureaucratic paralysis
The document highlights that this transformation has already begun in practice through several initiatives:
- Mission-mode platforms in semiconductors and green hydrogen development
- State-level deregulation compacts replacing inspection-based control with trust-based compliance
- Outcome-oriented bureaucracy where officials are evaluated on results rather than rule-following
Clarifying the Entrepreneurial State Concept
The survey takes care to clarify that this proposed entrepreneurial state model should not be misunderstood. It does not imply the commercialization of the state or state capitalism, nor does it suggest privileging private interests over public welfare. Rather, it envisions a government that:
- Willingly experiments with new economic approaches
- Takes calculated risks in strategic sectors
- Absorbs failures as learning opportunities
- Dynamically reallocates support based on performance
Rishi Shah, partner and economic advisory services leader at Grant Thornton Bharat, elaborated on this concept: "An entrepreneurial state is quick on its feet—willing to act before certainty emerges, embrace the unconventional, and look for opportunity in periods of flux, much like a successful entrepreneur would."
Addressing Structural Challenges and Global Context
The survey identifies that India's principal strategic risk lies less in external shocks and more in a mindset that downplays structural discontinuities. This entrepreneurial approach becomes particularly critical in an environment where:
- Policy must be made under uncertainty
- Outcomes cannot be predicted in advance
- Mistakes cannot always be reversed without significant cost
The document draws lessons from East Asian experiences while noting that "industrial policy has a far better chance of success with institutional reform." It warns against systems where bureaucracy is punished for honest failure, leading to risk aversion and entrenched inefficiency.
Private Sector's Role and Broader Implications
The Economic Survey also addresses the private sector's responsibilities, noting that India's economic ascent will have both commercial and geopolitical implications. It calls for sustained deregulation and argues that both private enterprises and citizens must take active roles in development, recognizing that "the state alone cannot pull the chariot of economic and social progress."
This comprehensive vision presented in the Economic Survey 2025-26 represents a fundamental rethinking of governance in India's development journey, positioning the government as an active partner in economic innovation rather than a passive regulator.
