New Delhi, Jan. 30 -- Economic Survey 2025-26 deserves credit for elevating state capacity from a background condition to a central analytical concern. It moves the policy conversation beyond the familiar terrain of growth rates, fiscal arithmetic and sectoral incentives towards the institutional foundations that determine whether policy intent can be translated into outcomes.

In an international environment marked by geopolitical fragmentation and contested trade regimes, the ability of the state to act coherently, credibly and predictably has become a binding constraint on development.

It emphasizes implementation, institutional incentives, regulatory credibility, organisational design and the ability to learn under uncertainty.

Its ...