{
  "id": 11650586,
  "title": "Economic resilience cannot mean global insulation; domestic production \"may cost more\": Principal Secy to PM",
  "url": "https://urgent.news/2026/10/03/economic-resilience-cannot-mean-global-insulation-domestic-production",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-03T08:46:26.000Z",
  "source": {
    "name": "The Economic Times - Economy",
    "slug": "the-economic-times-economy",
    "url": "https://economictimes.indiatimes.com/news/economy/policy/economic-resilience-cannot-mean-global-insulation-domestic-production-may-cost-more-principal-secy-to-pm/articleshow/134655468.cms"
  },
  "original_language": "en",
  "account": "New Delhi: India's pursuit of economic resilience should not entail isolating itself from global markets, as acknowledged by PK Mishra, Principal Secretary to the Prime Minister. Mishra highlighted that domestic production may incur higher costs compared to sourcing materials from the most economical sources abroad. During periods of disruption, the advantages of domestic production become apparent, he explained. However, Mishra emphasized that resilience should not translate to isolation from the world but rather the capacity to remain open to global trade without succumbing to excessive vulnerability. He stressed that resilience entails the ability to stay connected to the world while maintaining a certain level of independence. Mishra pointed out that uncertainty influences economic behavior as businesses react to an increasingly unpredictable future by delaying investments, broadening their supplier base, increasing inventories, and sustaining spare capacity. Similarly, governments build reserves, enhance fiscal buffers, and invest in capabilities that may appear costly under normal circumstances but prove invaluable during crises. Mishra underscored that building resilience entails an additional expense. This reality is increasingly evident worldwide, as economists highlight that resilience is not a free commodity. Mishra emphasized the significance of accurately pricing risks while balancing the additional costs that economies can afford to bear for enhanced resilience. He explained two primary methods for assessing risks. The conventional approach considers the spectrum and probability of potential outcomes, encompassing both positive and negative scenarios. In contrast, the second approach focuses on the probability of returns falling below a critical or catastrophic threshold. The latter method is gaining traction among nations today. Mishra cautioned against treating domestic manufacturing solely as a means to substitute imports. He stressed that resilience should be pursued in tandem with productivity and competitiveness. The ultimate goal of developing domestic capabilities should not merely be to replace imports at any cost but to create competitive, scalable, and export-oriented capabilities, he concluded.",
  "summary": "PK Mishra emphasized the need for India to remain open to global markets while enhancing economic resilience. He indicated that domestic production could be more expensive than imports, which highlights the need for a better risk assessment. Businesses are increasingly postponing investments and diversifying suppliers due to economic uncertainties. Mishra underlined that building domestic…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}