Economic Survey 2025-26 Highlights FTA with Europe to Strengthen India's Manufacturing Competitiveness
The Economic Survey for the fiscal year 2025-26, presented ahead of the Union Budget, underscores the pivotal role of a Free Trade Agreement (FTA) with Europe in bolstering India's manufacturing sector. This strategic move is expected to enhance the country's global competitiveness, drive export growth, and foster economic resilience.
Key Insights from the Economic Survey 2025-26
The survey provides a comprehensive analysis of India's economic performance and future prospects. Key highlights include:
- Manufacturing Boost: The FTA with Europe is projected to reduce trade barriers, making Indian goods more competitive in European markets.
- Export Growth: Enhanced access to European markets could significantly increase India's export volumes, particularly in sectors like textiles, pharmaceuticals, and automotive parts.
- Economic Resilience: By diversifying trade partnerships, India aims to reduce dependency on single markets and mitigate global economic shocks.
Impact on India's Manufacturing Sector
The Economic Survey 2025-26 emphasizes that the FTA will not only lower tariffs but also facilitate technology transfer and investment inflows. This is expected to:
- Improve production efficiency through advanced manufacturing techniques.
- Create job opportunities in key industrial regions across India.
- Strengthen supply chains, making Indian industries more integrated into global value networks.
According to the survey, this agreement aligns with India's broader economic goals of achieving sustainable growth and becoming a manufacturing hub under initiatives like 'Make in India'.
Broader Economic Implications
Beyond manufacturing, the Economic Survey 2025-26 highlights several other areas of focus:
- Trade Diversification: The FTA is part of a strategy to expand India's trade footprint beyond traditional partners.
- Policy Support: The government is likely to introduce supportive measures in the upcoming Union Budget to maximize the benefits of this agreement.
- Global Positioning: Strengthening ties with Europe could enhance India's role in international trade forums and economic diplomacy.
In summary, the Economic Survey 2025-26 presents an optimistic outlook, with the FTA with Europe serving as a cornerstone for India's manufacturing competitiveness and overall economic advancement in the coming years.
