{"id":65556,"date":"2026-01-31T18:31:48","date_gmt":"2026-01-31T13:01:48","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=65556"},"modified":"2026-01-31T18:33:48","modified_gmt":"2026-01-31T13:03:48","slug":"entrepreneurial-state-india","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/31-01-2026\/entrepreneurial-state-india","title":{"rendered":"Economic Survey: India Must Shift to Entrepreneurial State"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The Economic Survey 2025-26<\/strong> borrows a phrase from Mariana Mazzucato to describe what Indian governance must become: <strong>an Entrepreneurial State.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is an Entrepreneurial State?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It is a deeper shift towards<strong> entrepreneurial policy<\/strong><strong>making under uncertainty:<\/strong> a state that can act before certainty emerges, structures risk rather than avoiding it, learns systematically from experimentation, and corrects course without paralysis.\n<ul class=\"wp-block-list\">\n<li>It does not mean state capitalism, nor does it imply the commercialisation of government functions or privileging private interests.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Key Elements:\u00a0<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Bounded Experimentation: <\/strong>Creating institutional \u201csafe spaces\u201d where innovation is permitted with accountable review mechanisms.<\/li>\n\n\n\n<li><strong>Regulatory Sandboxes:<\/strong> Extending beyond fintech to sectors like labour and environmental regulation to encourage innovation.<\/li>\n\n\n\n<li><strong>Legal Protection for Good-Faith Decisions: <\/strong>Ensuring officials can innovate without fear of punitive repercussions.<\/li>\n\n\n\n<li><strong>Independent Ex-post Review Mechanisms: <\/strong>Assessing decisions based on the information available at the time rather than only based on outcomes.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>India has already begun to see elements of this approach in practice:<\/strong> from the creation of mission-mode platforms in semiconductors and green hydrogen, to the restructuring of public procurement to enable first-of-a-kind domestic innovation.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges in Current Approach<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The chapter highlights structural and behavioural issues that limit performance, including:\n<ul class=\"wp-block-list\">\n<li><strong>Risk Aversion: <\/strong>Bureaucratic culture often prioritizes procedural compliance over judgement and experimentation.<\/li>\n\n\n\n<li><strong>Hysteresis and Permanence: <\/strong>Temporary policies often become permanent, raising the stakes and disincentivizing experimentation.<\/li>\n\n\n\n<li><strong>Accountability Systems:<\/strong> Retrospective scrutiny (through audits, judicial review, etc.) discourages innovative or adaptive actions.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Need for Entrepreneurial State<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Impact of Global Political Scenario: <\/strong>A lingering concern that the negative effects of the ongoing global political and economic turmoil may manifest with a lag.\u00a0<\/li>\n\n\n\n<li><strong>Trade Wars:<\/strong> As strategic rivalry intensifies, trade turns coercive, sanctions multiply, supply chains are politically realigned, and financial shocks spread faster across borders amid weaker institutional buffers.\n<ul class=\"wp-block-list\">\n<li>Policy is increasingly nationalised, forcing countries to choose more sharply between autonomy, growth, and stability.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Global Financial Crisis: <\/strong>The risk of a systemic shock cascade in which financial, technological, and geopolitical stresses amplify one another rather than unfolding independently.\n<ul class=\"wp-block-list\">\n<li>While this remains a lower-probability scenario, its consequences would be significantly asymmetric.\u00a0<\/li>\n\n\n\n<li>The macroeconomic consequences could be worse than those of the 2008 global financial crisis.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>The three scenarios pose a common risk for India: <\/strong>disruption of capital flows and the consequent impact on the rupee.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>State capacity is not just administrative resources, it&#8217;s about <strong>incentive structures, risk-taking capacity, and governance culture.<\/strong><\/li>\n\n\n\n<li>The chapter m<strong>oves beyond traditional policy analysis<\/strong> to emphasize <strong>institutional design and adaptive governance.<\/strong><\/li>\n\n\n\n<li>India\u2019s economic strategy must balance stability and democratic legitimacy with entrepreneurial action and institutional innovation.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2220007&amp;reg=3&amp;lang=1\" target=\"_blank\" rel=\"noopener\"><strong>PIB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> The Economic Survey 2025-26 borrows a phrase from Mariana Mazzucato to describe what Indian governance must become: an Entrepreneurial State. <\/li>\n<p><\/p>\n<p><strong> What is an Entrepreneurial State? <\/strong><\/p>\n<li class=\"ms-5\"> It is a deeper shift towards entrepreneurial policymaking under uncertainty: a state that can act before certainty emerges, structures risk rather than avoiding it, learns systematically from experimentation, and corrects course without paralysis. <\/li>\n<li class=\"ms-5\"> It does not mean state capitalism, nor does it imply the commercialisation of government functions or privileging private interests. <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/31-01-2026\/entrepreneurial-state-india \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-65556","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/65556","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=65556"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/65556\/revisions"}],"predecessor-version":[{"id":65560,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/65556\/revisions\/65560"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=65556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=65556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=65556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}