Taxmann's Analysis | Overview of the Economic Survey 2025-26
The Finance Minister Smt. Nirmala Sitharaman presented the Economic Survey 2025-26 in Parliament on 29 January, 2026. The Survey reviews the performance of the Indian economy in the backdrop of a challenging global environment marked by geopolitical tensions, trade fragmentation and financial market volatility. It notes that despite these headwinds, India remains one of the fastest-growing major economies, supported by strong macroeconomic fundamentals, policy reforms, and sustained public investment.
The Survey provides a comprehensive assessment of developments in growth, inflation, fiscal position, monetary conditions, the external sector, and financial stability, along with a detailed review of sectoral performance across agriculture, industry, and services. It also analyses emerging issues such as manufacturing competitiveness, cost of capital, export performance, climate transition, employment and skill development, and the role of technology, including artificial intelligence, in shaping the economy.
The Economic Survey 2025-26 underlines the need to strengthen domestic growth drivers while building resilience against external shocks. It emphasises the importance of improving state capacity, enhancing productivity, promoting competitive manufacturing and exports, and maintaining policy credibility to sustain growth over the medium term.
The Survey serves as an important reference document for policymakers, businesses, and other stakeholders to understand the economy’s current position and future direction.
The key discussions on Gross Domestic Product (GDP), Capital Expenditure (CAPEX), Direct Taxation, GST, Customs, Corporate Law, and other laws highlighted in the Economic Survey are outlined below:
1. GDP
(a) Real GDP growth is estimated at 7.4% in FY26, reaffirming India as the fastest-growing major economy for the fourth consecutive year.
(b) Domestic demand remains the key driver, with Private Final Consumption Expenditure (PFCE) rising to 61.5% of GDP, the highest level since FY12.
(c) Investment remains robust, with Gross Fixed Capital Formation (GFCF) at 30% of GDP, supported by strong public capex and revival in private investment.
(d) The services sector continues to anchor GDP growth, while improved manufacturing momentum has enabled broad-based expansion.
(e) Policy reforms have raised India’s medium-term growth potential to around 7%, with FY27 real GDP growth projected at 6.8–7.2% despite global uncertainty.
(f) India has reduced its general government debt-to-GDP ratio by about 7.1 percentage points since 2020, supported by a credible medium-term fiscal anchor of 50 ± 1%.
(g) The fiscal deficit declined from 9.2% of GDP in FY21 to 4.8% in FY25 (PA) and is budgeted at 4.4% in FY26, reflecting improved expenditure quality and asset-creating spending.
(h) Outstanding corporate bonds reached Rs. 53.6 trillion in FY25, with record issuances of Rs. 9.9 trillion (15–16% of GDP); however, the market remains shallow, issuer-concentrated, and less accessible for smaller firms.
2. Capital Expenditure (CAPEX)
(a) The Centre has combined fiscal consolidation with sustained public investment, earning three sovereign rating upgrades, as capex rose from 12.5% of total expenditure in FY20 to 22.6% in FY25, with effective capex at 4.0% of GDP, supported by Special Assistance to States for Capital Expenditure/Investment (SASCI) incentives to states.
(b) Central government capex increased from 1.7% of GDP pre-pandemic to 2.9% post-pandemic, while effective capex reached 4.0% in FY25, signalling a structural reorientation toward longterm asset creation.
(c) Under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors, a 25% capex incentive is provided; as of September 2025, 58 projects involving Rs. 22,081 crores of proposed investment have been approved.
(d) The Government of India’s capital outlay increased by nearly 89%, from Rs. 5.92 lakh crore in FY22 to Rs. 11.21 lakh crore in FY26, underscoring the strong growth impact of infrastructure spending; with a 2.5–3.5x GDP multiplier, capex has emerged as a key driver of economic expansion.
3. Direct Taxes
(a) Manufacturing and exports are identified as strategic priorities, with tax and policy frameworks expected to play a supportive role in enhancing competitiveness.
(b) As of November 2025, major direct taxes accounted for nearly 53 per cent of Budget Estimates, compared with 56.6 per cent in the corresponding period of the previous year, with personal income tax and corporate tax recording year-on-year growth despite tax concessions.
(c) The share of direct taxes in total tax revenue increased from 51.9 per cent in the pre-pandemic period to 55.5 per cent post-pandemic, reaching 58.8 per cent in FY25 (PA), reflecting a structural shift towards direct taxation.
(d) Non-corporate tax collections strengthened significantly, increasing from an average of 2.4 per cent of GDP pre-pandemic to about 3.3 per cent post-pandemic, and further to 3.7 per cent of GDP in FY25 (PA), with buoyancy exceeding nominal GDP growth.
(e) The improvement in tax collections was supported by tax base expansion, with incometax returns filed increasing from 6.9 crore in FY22 to 9.2 crore in FY25, reflecting improved compliance, technology-driven administration, and rising incomes.
(f) Nudge-based interventions have enhanced tax collection efficiency by shifting the focus from post-facto enforcement to preventive, technology-enabled compliance, thereby reducing litigation and compliance costs while improving voluntary tax compliance.
4. Goods and Services Tax (GST)
(a) Gross GST revenue for April–December 2025 was Rs. 17.4 lakh crore, growing 6.7% YoY, and collections in absolute terms reached multiple all-time highs, aligning broadly with nominal GDP growth. The GST tax base has expanded steadily, with registered taxpayers rising from about 60 lakh in 2017 to over 1.5 crore currently. This reflects deeper formalisation of economic activity. E-way bill volumes during April–December 2025 grew by 21% YoY, indicating robust transaction volumes.
(b) According to the November 2025 NABARD survey, 79.2 per cent of rural households reported higher consumption in the past year. The share of monthly income spent on consumption rose to about 67 per cent. This increase in consumption is partly due to GST rate rationalisation, which made goods more affordable. Along with softer inflation, these GST changes improved the real purchasing power of rural non-farm households.
(c) High-frequency indicators for Q3 FY26 show strengthening industrial activity. E-way bill generation grew by 19.4% in Q3, following 20.5% in Q1 and 23.1% in Q2 FY26, reflecting higher movement of goods under GST. The steady rise in e-way bill generation highlights the positive impact of GST rationalisation. GST reforms have supported industrial and trade activity.
(d) Inflation in FY26 eased, boosting real purchasing power and supporting consumption. Headline CPI inflation declined to 1.7 per cent, helped by lower food prices and better supply conditions. The overall inflation outlook remains benign, with limited demand-side pressures. Gradual passthrough of GST rate rationalisation is expected to further support price stability.
(e) Gross tax revenue collection remained strong during the year. Indirect taxes, including GST, performed well despite lower inflation and import volatility. Gross GST collections reached multiple all-time highs, showing stable compliance and economic activity. GST rate rationalisation supported consumption demand. These reforms also helped sustain overall tax revenues in absolute terms.
(f) Adoption of public digital infrastructure like GSTN, Aadhaar, and UPI has reduced transaction and compliance costs. Tax compliance has improved, and settlement cycles have shortened. Digital systems have made firm entry and exit easier. This has improved allocative efficiency, allowing capital to move toward more productive activities.
(g) GST collections in FY26 reached multiple all-time highs, with growth broadly in line with nominal GDP. Recent GST rate rationalisation is expected to support demand by reducing tax burden and improving price competitiveness. Volume and compliance improvements from GST reforms have helped maintain revenue resilience.
(h) The introduction of the highest GST slab and/or an additional surcharge on Ultra Processed Foods (UPFs) exceeding prescribed thresholds for sugar, salt, or fat may be considered. The additional revenue generated from such measures could be specifically earmarked for public health purposes, including nutrition awareness programmes, improvement of school meals, and prevention and control of non-communicable diseases.
(i) The sharing of mining royalties, DMF funds, and GST with Panchayats helps align financial resources with local governance needs.
5.
Customs – Exports
(a) India’s services exports reached an all-time high, growing 13.6% year-on-year, and reinforcing the country’s position as a global hub for technology, business, and professional services. A major reason behind this export surge is India’s success as a global destination for Global Capability Centres (GCCs), which expanded at a 7% CAGR between FY20 and FY25, driven by abundant talent, diversity, and a favourable cost structure.
(b) Computer services now account for more than two-thirds of India’s total software services exports, while BPO services continue to be the most significant component of ITES exports. Although the United States remains the largest destination for India’s software exports, its share has declined slightly from 54.1% in FY24 to 52.9% in FY25, indicating gradual diversification into other markets.
(c) The diffusion of artificial intelligence (AI) has significantly boosted India’s services exports. AIintensive services grew substantially faster than less AI-exposed services after the AI diffusion phase, with an estimated impact of about 39.5% higher exports for AI-exposed categories compared with control categories. Export gains were particularly strong in software and business services, while financial services also showed positive growth, though the effect was not statistically significant during the period under study.
(d) India mainly exports generic drugs to the US. Pharmaceutical exports to the US fell by 23.7% YoY in October 2025. The decline was due to uncertainty over tariffs on generic drugs. Indian exporters reduced their reliance on the US market in response to these tariff concerns. In November 2025, pharmaceutical exports to the US rebounded, growing by 9.8% YoY. This reversed the decline seen in October 2025.
(e) The India-Oman CEPA, signed on 18-12-2025, improves market access for Indian goods and services in the Middle East and Africa. The agreement provides duty-free access for 99.38% of India’s exports, with immediate tariff elimination on 97.96% of tariff lines. Major labour-intensive sectors in India benefit from full tariff elimination. India also liberalised tariffs on 94.81% of imports from Oman.
(f) The Production Linked Incentive (PLI) Scheme for telecom products, launched in 2021 with a financial outlay of Rs. 12,195 crore, has significantly strengthened domestic manufacturing. The scheme has attracted investments exceeding Rs. 4,700 crore, generated sales of over Rs. 1,00,000 crore, including exports worth Rs. 21,000 crore, and has led to the creation of approximately 30,000 jobs.
6. Customs – Imports
(a) India was a net importer of steel during FY26 (April–October), primarily due to low international prices, which resulted in lower margins on exports and cheaper imports.
(b) While India is largely self-sufficient in iron ore, the iron and steel industry remains critically dependent on imported Coking Coal. To mitigate global supply risks, the Ministry of Coal launched Mission Coking Coal in 2022 with a view to significantly enhancing domestic raw coking coal production to 140 MT by 2030.
(c) Driven by this strong domestic output, imports fell 7.9 per cent, from 264.53 MT in FY24 to 243.62 MT in FY25. Furthermore, the ratio of domestic production to consumption has steadily improved over the past decade, as production growth has consistently outpaced consumption growth.
(d) India’s electronics sector has transformed from a net importer to the world’s second-largest mobile phone manufacturer, with over 300 manufacturing units today, up from just two in 2014. The PLI Scheme, launched in April 2020, has been a key driver, supporting Rs. 9.34 lakh crore in production, Rs. 5.12 lakh crore in exports, and Rs. 13,759 crore in investment by September 2025.
(e) India’s medical devices sector is also rapidly becoming globally competitive, with exports to 187 countries in FY25. The industry now manufactures high-end equipment, including MRI and CT scanners, linear accelerators, cardiac stents, and ventilators.
(f) The sector is also gaining global recognition, with over 5.3 million vehicles exported in FY25 and strong export growth in early FY26, showing that ‘Made in India’ vehicles are increasingly in demand worldwide.
(g) Imports of Capital goods continue to record strong growth. Growth rates were 6.6% in Q1, 9.2% in Q2, and 13.4% in Q3 FY26, above the historical average of 7.1%.
(h) Rolled out in 2023 and fully effective from 2026, the EU Carbon Border Adjustment Mechanism (CBAM) imposes tariffs on imports such as steel and cement based on their embedded emissions, targeting high-pollution exporters (such as China and India) as classified under EU methodology, with the dual objective of protecting European industry and achieving climate goals
(i) Merchandise imports for April-December 2025 increased by 5.9 per cent. This increase was primarily driven by a rise in non-petroleum, non-gems and jewellery imports, which increased to USD 446.5 billion from USD 421 billion in FY24.
(j) India’s import composition continues to be dominated by petroleum crude, gold and petroleum products, with these sectors accounting for over one-third of total imports. Imports of petroleum crude increased marginally by 2.7 per cent (YoY) amid softer crude oil prices, reflecting stable energy demand, while gold imports increased by 27.4 per cent (YoY).
(k) The increase in gold imports may be attributed to a rise in gold prices, increasing by 38.2 per cent (YoY) and driven by strong domestic consumption.
(l) Imports of chemical materials and products increased sharply by 44.4%, indicating strong demand from industries and higher manufacturing activity. At the same time, imports of intermediate goods also rose, showing a gradual improvement in domestic manufacturing capacity.
(m) The merchandise trade deficit widened from USD 224.0 billion to USD 248.3 billion during April–December 2025, and further increased to USD 283.5 billion in FY25, reflecting a 17.6% year-onyear rise.
(n) Most sectors have recorded positive average annual growth in imports, including automobiles (15.1%), textiles (13.2%), food products (12.1%), and pharmaceuticals (7.4%). This trend indicates a steady expansion in domestic economic activity, along with continued reliance on imported inputs and technology.
(o) The telecom sector has shown notable progress, with exports growing at an average annual rate of 1.5% while imports have declined sharply by 18.5% on an average annual basis. This pattern reflects an early achievement in import substitution and is consistent with the PLI scheme’s objective of strengthening export competitiveness. Overall, these trends indicate the positive role of the PLI scheme in supporting the country’s export growth.
(p) A significant diversification in India’s crude oil import sources has been observed. During FY26 (April–November), imports from Libya, Egypt, Brazil, the United States, and Brunei increased markedly compared to the same period in FY25, while imports from Russia, Saudi Arabia, Iraq, and Venezuela registered a decline.
(q) Imports from a wider set of countries now account for a significant share of India’s crude oil imports, with notable increases from the US, Egypt, UAE, Nigeria, and Libya. During April–November 2025, the US share rose to 8.1% from 4.6% in the same period of FY25, while the UAE’s share increased from 9.4% to 11.1%. Egypt’s share increased from 0.3% to 1.4%, Nigeria’s from 2.2% to 3.3%, and Libya’s from 0.1% to 0.5%
(r) The Government defines import substitution as an economic strategy that promotes domestic production of goods that were previously imported, with the core objective to reduce import dependence by producing domestically what was previously imported. This strategy primarily targets sectors such as manufacturing, consumer goods, and intermediate goods, and is typically implemented as a short-to-medium-term industrial policy tool
7. Excise Duty
(a) Post-pandemic, excise duty collections moderated, declining from about 1.7% of GDP in FY22 to around 0.9% of GDP in FY25. This was mainly due to reductions in excise duty rates on petroleum products in 2021 and 2022, along with relatively moderate growth in petrol and diesel consumption during FY24 and FY25.
(b) As of the end of November 2025, both excise duty and customs duty collections reached about 60% of their Budget estimates, compared with 55% and 65%, respectively, in the same period last year. While excise duty collections grew by 9.3% YoY, customs duty collections declined by 7.3% YoY.
(c) State excise recorded a YOY growth of 10.3% in FY26.
8. SEBI and the Capital Market
(a) On 18 December 2025, the Government introduced the Securities Market Code, 2025, consolidating the SCRA, SEBI Act, and Depositories Act to strengthen regulatory coherence, transparency, and governance of India’s securities markets.
(b) To enhance investor protection, SEBI mandated a standardised UPI address framework effective 1 October 2025 and launched ‘SEBI Check’, enabling investors to verify the authenticity of intermediaries and prevent financial fraud.
(c) India’s corporate bond market expanded significantly, with outstanding issuances increasing from Rs.17.5 trillion in FY15 to Rs. 53.6 trillion in FY25 (approximately 12% annual growth). Fresh issuances reached Rs. 9.9 trillion in FY25, with the market accounting for 15–16% of GDP by March 2025.
(d) In FY26 (April–December 2025), debt markets accounted for over 63% of primary market mobilisation, with Rs.6.8 lakh crore raised via corporate bonds, of which over 99% came through private placements.
(e) As India’s corporate bond market expands towards Rs.100–120 trillion by 2030, improved liquidity and price discovery can significantly lower the cost of capital, especially for mid-market firms.
(f) Despite global uncertainties, including US tariff measures, weak Q1 FY26 earnings, and foreign portfolio investor outflows, Indian equity markets remained resilient, with the Nifty 50 rising by 11.1% and the BSE Sensex by 10.1% during April–December 2025.
(g) Domestic mutual funds alone reached an all-time high of 10.9% of holdings in Q2 FY26. Combined, Domestic institutional investors, retail investors, and high-net-worth individuals now hold 27.8% of NSE-listed equities.
(h) India’s primary markets stayed robust in FY2025-26, mobilising Rs. 10.7 lakh crore, while Rs. 53 lakh crore was raised during FY22–FY26, including Rs. 14 lakh crore in equity, reinforcing their role in financing economic growth.
(i) IPO volumes increased by 20% and funds raised by 10% over FY25, with mainboard listings rising from 69 to 94 and mobilisation increasing from Rs.1,46,534 crore to Rs.1,60,273 crore.
(j) SME listings rose to 217 in FY2025-26, with funds raised increasing from Rs. 7,453 crore to Rs. 9,635 crore; cumulatively, 1,380+ SMEs have raised over Rs. 35,000 crore.
9. Foreign Exchange Management Act (FEMA)
(a) By 13 January 2026, FPIs are net sellers of Indian equities, recording outflows of Rs.16,500 crore.
(b) As of 31 December 2025, FPIs held assets worth Rs. 81.4 lakh crore, a 10.4% increase from March 2025, mainly due to equity valuation gains and stable debt accumulation.
(c) FPI ownership in NSE-listed equities fell to 16.9% in Q2 FY26, reflecting global risk aversion and sectoral reallocation.
(d) Domestic institutional investors (DIIs), including mutual funds and insurance companies, have provided stability by offsetting FPI outflows. As of 30 September 2025, DII ownership in NSElisted equities was 18.7%.
(e) By Q4 FY25, DIIs surpassed foreign institutional investors (FIIs) in holdings for the first time. This trend continued into Q2 FY26, with DIIs holding 18.3%, while FII holdings declined to 16.7%, the lowest in 13 years.
(f) Between April 2025 and January 2026, the Indian rupee depreciated by 5.4% against the US dollar due to FPI outflows, trade uncertainties, and high import demand, while capital inflows partially offset pressures.
(g) In Q2 CY 2025, Germany and China were the top creditor nations, with Japan at USD 3.6 trillion NIIP, while the US remained the largest debtor at USD 26.1 trillion; India ranked 11th with a negative NIIP of USD 0.3 trillion.
10. Insolvency and Bankruptcy Code (IBC)
(a) S&P Global Ratings upgraded India’s insolvency regime from Group C to Group B on 3 December 2025, citing improved recoveries of about 30 per cent and faster resolutions of around two years under the IBC.
(b) Over time, the resolution-to-liquidation ratio improved from 20 per cent in FY18 to 91 per cent in FY25. From about 1,300 resolved cases, creditors realised Rs. 3.99 lakh crore, recovering 94 per cent of fair value and 170 per cent of the estimated liquidation value.
(c) The recovery rate under the Insolvency and Bankruptcy Code, 2016, improved from 28.3 per cent in FY24 to 36.6 per cent in FY25.
(d) IBC implementation is associated with a reduction in the Net NPA to Net Advances ratio of approximately 0.96 per cent.
(e) Despite a 330-day limit under the Code, CIRP timelines average 713 days overall and 853 days for cases closed in FY25, worsened by nearly 30,600 pending cases before the NCLT and a clearance horizon of about 10 years.
(f) Of 4,527 registered RPs, only 2,198 hold active Authorisation for Assignment, and the PPRIP has seen just 14 admissions in four years, mainly due to procedural complexity and limited awareness.
11. Banking, SARFAESI & Debt Recovery
(a) Digital assets, such as stablecoins, are gaining traction and playing a larger role in financial intermediation. As of 31 December 2025, the total market capitalisation of stablecoins stands at USD 305.4 billion, marking a 49.6 per cent increase this year.
(b) Between April and December 2025, the RBI’s Monetary Policy Committee (MPC) cut the repo rate by a cumulative 100 basis points, bringing it down to 5.25 per cent to support credit growth, investment, and economic activity.
(c) The banking sector has further strengthened its balance sheets, with gross NPA ratios falling to multi-decade lows of 2.2 per cent as of September 2025.
(d) The recovery rate in NPAs in Scheduled Commercial Banks has approximately doubled from 13.2 per cent in FY18 to 26.2 per cent in FY25.
(e) The recovery rate through the Insolvency and Bankruptcy Code, 2016 (IBC/Code) has improved from 28.3 per cent in FY24 to 36.6 per cent in FY25. Through the SARFESI, it has improved from 25.4 per cent in FY24 to 31.5 per cent in FY25.
(f) The recovery rate in NPAs of SCBs nearly doubled from 13.2 per cent in FY18 to 26.2 per cent in FY25, while recoveries under SARFAESI rose from 25.4 per cent in FY24 to 31.5 per cent in FY25.
(g) The slippage ratio stood at 1.3 per cent in FY26 as of September 2025, while profit after tax grew by 16.9 per cent year-on-year in FY25.
(h) Within the industry, bank credit to the MSME sector remains robust, rising by 21.8 per cent in November 2025. In 2025, public sector banks also introduced a digital footprint–based credit assessment model for MSMEs.
(i) In FY24, they recorded a consolidated net profit of Rs. 7.6 thousand crore, while the GNPA ratio fell from 6.1 per cent in FY24 to 5.4 per cent in FY25, the lowest level in 13 years.
(j) The RBI Project Finance Directions, 2025, effective from 1 October 2025, create a unified project lending framework and refine the Date of Commencement of Commercial Operations (DCCO) norms to better address delays and curb loan evergreening.
(k) The Kisan Rin Portal has flagged Rs. 1,080.88 crore in duplicate or excess claims out of Rs. 37,506.53 crore, strengthening financial discipline in agricultural credit.
12. Insurance Sector
(a) Budget-2025 announcements to open up the insurance sector were implemented, raising the FDI limit in Indian insurance companies from 74 per cent to 100 per cent.
(b) The Sabka Bima, Sabki Suraksha Act, 2025, ushers in long-awaited insurance sector reforms and was notified on 21 December 2025.
(c) With ‘Assets Under Management’ (AUM) at Rs. 74.4 lakh crore in FY25, the sector’s financial depth has strengthened, while total premium income rose from Rs. 8.3 lakh crore in FY21 to Rs. 11.9 lakh crore in FY25.
(d) Health insurance, with a 41 per cent share of gross domestic premium, has overtaken motor insurance as the most extensive business line.
(e) The GST exemption on life and individual health insurance policies, introduced from September 2025, has provided significant relief to policyholders. Growth is expected to pick up, adding new insurance policyholders.
(f) A one-time registration for insurance intermediaries has been allowed, and the Net Owned Funds requirement for foreign reinsurers has been reduced from Rs. 5,000 crore to Rs. 1,000 crore to boost participation.
(g) IRDAI has been empowered to order disgorgement of wrongful gains, and the maximum penalty for insurers has been raised from Rs. 1 crore to Rs. 10 crore.
(h) While insurance density rose to USD 97 in FY25, penetration declined to 3.7 per cent, indicating revenue deepening without broader risk coverage due to high distribution costs.
(i) As of 7 January 2025, cumulative enrolment stood at 56.15 crore under PMSBY and 26.32 crore under PMJJBY.
(j) As of November 2025, 52 insurance entities were registered at GIFT City.
13. Micro, Small, and Medium Enterprises (MSMEs)
(a) MSMEs are a key pillar of India’s economy, contributing 35.4% of manufacturing, 48.6% of exports, and 31.1% of GDP, with over 7.47 crore enterprises employing 32.82 crore people, making it the second-largest employer after agriculture.
(b) Globally, MSMEs constitute 90% of businesses and provide over 50% of employment, highlighting their critical role in supply chains, local value addition, and inclusive growth.
(c) With a Rs. 500 crore outlay, the Revamped Pharmaceuticals Technology Upgradation Scheme (RPTUAS) supports MSMEs and clusters, approving 255 applications to help units meet global standards.
(d) Under the Rs. 76,000 crore India Semiconductor Mission, key projects approved include Micron’s ATMP facility, Tata Electronics’ fab, a compound semiconductor fab, and multiple packaging
units, along with support for 24 financial projects and 100 start-ups/MSMEs in chip design infrastructure.
14. International Financial Services Centre (IFSC)
(a) GIFT City has shown a strong growth momentum, with over 1,034 domestic and international entities registered across various categories as of 30 November 2025.
(b) Within a year, GIFT City has moved up nine places in the Global Financial Centres Index (GFCI), reaching a rank of 43 out of 120 financial centres.
(c) Within the fintech-specific ranking, GIFT City improved by ten places, reflecting progress made through a dedicated regulatory framework for fintechs, academic partnerships and innovation centres.
(d) In the area of banking and credit operations, GIFT City has hosted 38 IFSC Banking Units with USD 100+ billion in assets and USD 142.98 billion in cumulative transactions.
(e) In capital markets and debt, GIFT City has recorded a monthly turnover of USD 88+ billion, cumulative derivatives trades of USD 1,351 billion, and debt listings of USD 66+ billion, including USD 15+ billion in ESG securities.
(f) In specialised financial services, GIFT City hosts 33 aircraft lessors (303 aviation assets) and 34 ship lessors (28 vessels), addressing India’s leased fleet dependency.
(g) In bullion trading, the India International Bullion Exchange has been operational since July 2022, with 185 qualified jewellers and a vault capacity of 151 tonnes of gold and 930 tonnes of silver.
(h) In fund management and insurance, 194 Fund Management Entities manage 310 schemes with commitments of USD 26.30 billion, and 52 insurance entities are registered.
15. Pension Sector
(a) Between 2021 and 2036, the proportion of the old-age population (60+) in the total population is expected to increase from 10.1% to 14.9%. At the same time, the proportion of the workingage population (15-59) is projected to increase marginally from 64.2% to 64.9% during the same period.
(b) The Government introduced the Unified Pension Scheme (UPS) vide notification dated 24 January 2025 as an option under the National Pension System (NPS) for Central Government employees. It aims to blend features of earlier pension systems by guaranteeing a minimum pension while allowing investment-based growth.
(c) The NPS e-Shramik (Platform Service Partner) Model was launched on 29 October 2025. This model is designed for platform workers and seeks to integrate them into mainstream retirement savings through the NPS.
(d) As of 31 December 2025, there were 211.7 lakh NPS subscribers and managed assets worth Rs. 16.1 crore.
(e) Over the past decade (FY15 to FY25), NPS subscribers have grown at a CAGR of 9.5 per cent, and the assets under management (AUM) have rapidly increased at a CAGR of 37.3 per cent.
(f) Pension assets in India make up around 15-20 per cent of GDP, significantly less than the 60-100 per cent range seen in more advanced pension markets.
(g) States/UTs are also providing financial assistance to an additional 5.86 crore beneficiaries through State Pension Schemes. Therefore, around 9 crore beneficiaries (including central NSAP plus additional state beneficiaries) are covered by the country’s pension safety net, with an estimated annual expenditure of more than Rs. 1 lakh crore.
(h) The Aadhaar-based Mobile Application for Digital Life Certification (DLC) of National Social Assistance Programme (NSAP) pension beneficiaries was launched in July 2025. As of 13 January 2026, a total of 47.76 lakh beneficiaries have been authenticated through DLC across India.
16. Labour Laws
(a) According to a study by SBI, the implementation of labour laws can increase the formalisation in the economy from 60.4 per cent to 75.5 per cent.
(b) SBI estimates that the implementation of the ‘Code on Wages’ would increase the disposable income of workers and has the potential to boost consumption by approximately Rs. 75,000 crore, in turn enhancing economic growth.
(c) From 77 lakh workers in FY21, the gig economy sector witnessed a 55 per cent increase to 120 lakh workers in FY25, driven by smartphone penetration among over 80 crore users and 15 billion UPI transactions per month.
(d) Representing over 2 per cent of India’s total workforce, the growth of gig workers is outpacing overall employment, with non-agricultural gigs projected to constitute 6.7 per cent of the workforce by 2029–30 and contribute Rs. 2.35 lakh crore to GDP.
(e) Code on Social Security (CSS) mandates aggregators’ contribution to 1-2 per cent of annual turnover (capped at 5 per cent of worker payouts) to fund life/health insurance, as well as pensions for gig workers, potentially covering 2.35 crore workers by 2030.
(f) About 40 per cent of gig workers report earning less than Rs. 15,000 per month. According to a NITI Aayog report, the share of high-skilled gig workers is expected to be 27.5 per cent by 2030, while the share of low-skilled workers is projected to be 33.8 per cent.
(g) Estimates from a 2025 study suggest that a 12-percentage-point increase in the skilled workforce, through investment in formal skilling, could lead to more than a 13 per cent increase in employment in labour-intensive sectors by 2030.
(h) Women’s participation in regular wage jobs is 10.8 per cent in Q2 FY26 in rural areas, coinciding with a significant share of women working as ‘own account workers/employers’ (37.5 per cent) or ‘helpers in household enterprises’ (34.2 per cent).
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Naveen Wadhwa Research and Advisory [Corporate and Personal Tax]
Chartered Accountant (All India 24th Rank)
14+ years of experience in Income tax and International Tax
Expertise across real estate, technology, publication, education, hospitality, and manufacturing sectors
Contributor to renowned media outlets on tax issues
Vinod K. Singhania
Expert on Panel | Research and Advisory (Direct Tax)
Over 35 years of experience in tax laws
PhD in Corporate Economics and Legislation
Author and resource person in 800+ seminars
V.S. Datey
Expert on Panel | Research and Advisory [Indirect Tax]
Holds 30+ years of experience
Engaged in consulting and training professionals on Indirect Taxation
A regular speaker at various industry forums, associations and industry workshops
Author of various books on Indirect Taxation used by professionals and Department officials
S.S. Gupta
Expert on Panel | Research and Advisory [Indirect Tax]
Chartered Accountant and Cost & Works Accountant
34+ Years of Experience in Indirect Taxation
Bestowed with numerous prestigious scholarships and prizes
Author of the book GST – How to Meet Your Obligations', which is widely referred to by Trade and Industry
Manoj Fogla
Expert on Panel | Research and Advisory [Charitable Trusts and NGOs]
Over three decades of practising experience on tax, legal and regulatory aspects of NPOs and Charitable Institutions
Law practitioner, a fellow member of the Institute of Chartered Accountants of India and also holds a Master's degree in Philosophy
PhD from Utkal University, Doctoral Research on Social Accountability Standards for NPOs
Author of several best-selling books for professionals, including the recent one titled 'Trust and NGO's Ready Reckoner' by Taxmann
Drafted publications for The Institute of Chartered Accountants of India, New Delhi, such as FAQs on GST for NPOs & FAQs on FCRA for NPOs.
Has been a faculty and resource person at various national and international forums
the UAE
Chartered Accountant (All India 36th Rank)
Has previously worked with the KPMG
Contact Us
Taxmann Delhi
59/32, New Rohtak Road
New Delhi – 110005 | India
Phone | 011 45562222
Email | sales@taxmann.com
Taxmann Mumbai
35, Bodke Building, Ground Floor, M.G. Road, Mulund (West), Opp. Mulund Railway Station Mumbai – 400080 | Maharashtra | India
Phone | +91 93222 47686
Email | sales.mumbai@taxmann.com
Taxmann Pune
Office No. 14, First Floor, Prestige Point, 283 Shukrwar Peth, Bajirao Road, Opp. Chinchechi Talim, Pune – 411002 | Maharashtra | India
