Economic Survey 2025-26: India Needs PPP Framework Shift to Reduce Uncertainty

• The Economic Survey 2025-26 suggests India's public-private partnership (PPP) framework needs to shift from transaction-centric execution to system-level market building, focusing on reducing structural uncertainty.
• It emphasizes clearer sectoral pipelines, stronger links between national programs and project preparation, and disciplined pre-construction risk closure by public authorities.
• PPP outcomes have been weakest where issues like land acquisition, clearances, and demand assessment remain unresolved, highlighting the need for the State to absorb early-stage risks.
• Challenges persist at the sub-national level due to trust deficits, limited understanding of risk-reward principles, and uneven institutional capacity.
• The Survey recommends professionalizing PPP cells, adopting programmatic approaches, and leveraging data platforms to track performance and lifecycle outcomes.

Why It Matters: India's PPP framework must evolve from transaction-focused to system-level market building, prioritizing risk reduction and clarity.