India’s resilience to global shocks built on broad reforms: Shaktikanta Das
Speaking at the Kautilya Economic Conclave, Das said that reforms such as flexible inflation targeting, the goods and services tax, digital payments and banking sector reforms were not designed as one-off measures but as buffers that allow the economy to absorb disruptions and recover rapidly.
New Delhi - India is on the brink of achieving an 8% GDP growth rate, according to Shaktikanta Das, Principal Secretary-2 to the Prime Minister. Addressing the Kautilya Economic Conclave, Das emphasized that India's resilience is not accidental, but the result of broad and mutually reinforcing reforms across several key areas. These include artificial intelligence (AI), deepening of the financial sector, strategic self-reliance, sustainable development, and human capital development.
Das highlighted the complexities of the current global economic situation, which is characterized by wars, fragmentation, unilateralism, tech blockades, energy price volatility, and rising inflation. He warned that the interplay of these forces could stifle global growth, leading to restrictive monetary policies by central banks.
Despite these challenges, India's real GDP grew by 7.8% in the first quarter of FY27, driven by strong domestic demand and investment conditions. Das attributed India's resilience to three main factors: strengthening governance and state capacity, building macroeconomic stability, and investing in long-term productive capacity. He noted that India's development journey over the past decade has been marked by the creation of governance foundations before crises emerged.
Das emphasized that India's policies have focused on fiscal consolidation and sustainable debt management, with reforms like flexible inflation targeting, GST, digital payments, and banking reforms being strategically important. He also highlighted significant improvements in infrastructure, financial inclusion, housing, and welfare delivery, which have contributed to stronger citizen-state engagement.
The government has been actively working on building domestic capabilities in areas where India is largely dependent on imports, such as rare earth permanent magnets for automobile and electronic hardware manufacturing. Das stressed the importance of continuing structural reforms, completing the reform agenda, and maintaining a focus on stability in fiscal, monetary, and overall terms.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- India within striking distance of 8% GDP growth, resilience not accidental: Shaktikanta Das economictimes.indiatimes.com
