Economic Survey Proposes National Strategy to Slash Input Costs, Calls High Costs 'Hidden Tax'

• The Economic Survey 2025-26 advocates for a national strategy to reduce input costs across energy, logistics, raw materials, and compliance.
• High input costs are termed a "hidden tax" hindering manufacturing, exports, and job creation, acting as a barrier to global competitiveness.
• The survey warns against tariff inversion, where duties on intermediate goods are higher than finished products, discouraging domestic value addition.
• It emphasizes that input cost reform should be rule-based and economy-wide, not sector-specific, to benefit all industries.
• Lowering input costs is crucial for boosting private investment, especially for MSMEs and export-oriented manufacturing, by improving margins and encouraging technology upgrades.

Why It Matters: India's Economic Survey proposes a national strategy to cut input costs, viewing high costs as a 'hidden tax' on industrial growth.