Budget 2026: Former World Bank Advisor Urges Shift to Structural Growth

• India's economy shows macroeconomic strength with resilient growth, moderated inflation, credible public finances, and a stable financial system.
• Despite stability over FY25 and FY26, growth has plateaued around 6.5%, indicating a structural rather than macroeconomic constraint.
• Private investment, productivity gains, and deregulation are crucial for accelerating growth beyond the current 6-7% range, as highlighted by the Economic Survey 2024-25.
• Key challenges include uneven consumption, lagging private capital expenditure despite public capex, and employment growth concentrated in construction and services.
• Budget 2026 must focus on regulatory simplification, de-risking private capex, addressing food inflation structurally, and boosting export competitiveness through deeper reforms.

Why It Matters: India's macroeconomic stability is a platform; Budget 2026 must drive structural reforms for higher growth.