Economic Survey 2025–26: Social Sector Paradox

Syllabus: GS3/ Economy

In News

• The Economic Survey 2025–26 flags a social sector paradox in India: strong gains in health outcomes alongside stagnation or uneven progress in education quality and urban capacity.

What is the Social Sector Paradox?

• The social sector paradox describes a scenario where surface-level metrics like enrolment rates or life expectancy rise, but underlying quality, learning outcomes, and service delivery capacities do not keep pace with population growth, economic needs, or urban expansion.

Key Trends Highlighted by the Survey

• Education: Enrolment without Learning:
  • Near-universal elementary enrolment, but low proficiency in reading and arithmetic persists.
  • Expected years of schooling, still below many major economies.
  • Sharp dropouts after Grade VIII; secondary net enrolment ~52.2%.
  • Skill mismatch risks as students exit before acquiring employable competencies.
  • Adolescent dropouts weaken the demographic dividend.
• Health Progress But with Emerging Risks:
  • Health shows steady gains with sharp declines in maternal mortality and under-five deaths, life expectancy exceeding 70 years, and expanded coverage via digital health and insurance like Ayushman Bharat. 
  • However, emerging risks include rising non-communicable diseases, obesity, and lifestyle disorders amid these improvements.
• Urbanisation: Economic Engines, Weak Foundations
  • Cities generate a large share of GDP, but face low municipal revenues, capacity gaps in housing, transport, sanitation & weak climate resilience.
  • Under-funded cities can become growth bottlenecks instead of catalysts.

Source: IE