New Delhi, October 4 (Daily Kiran) : Shaktikanta Das, the principal secretary to the Prime Minister, stated on Sunday that the extensive economic reforms implemented over the past decade have enabled India to emerge as a more robust and resilient economy amid global shocks. Speaking at the Kautilya Economic Conclave in New Delhi, the former RBI Governor and ex-Secretary of Economic Affairs emphasized that these reforms were not isolated measures but were designed to enhance the economy’s ability to withstand shocks and recover swiftly.
Das highlighted key initiatives such as flexible inflation targeting, the Goods and Services Tax (GST), the expansion of digital payments, and reforms in the banking sector, all of which have significantly strengthened India’s economic foundation.
He noted that India’s performance has been particularly remarkable during a time when the world faces geopolitical tensions, global trade disruptions, technical restrictions, volatile energy prices, and rising public debt in developed nations. In the first quarter of the fiscal year 2026-27, India’s real GDP growth rate stood at 7.8%, bolstered by strong domestic demand and investment. Das pointed out that the country is now approaching an 8% growth rate, having recorded over 8% growth for four consecutive quarters from July-September 2025 to April-June 2026-27, reflecting India’s economic potential.
Das further emphasized that the foundation of India’s economic strength lies in its macroeconomic stability. The flexible inflation targeting framework, implemented in 2016, has allowed India to effectively navigate various global shocks, including the COVID-19 pandemic, the Russia-Ukraine war, and conflicts in West Asia.
He also mentioned the government’s approach to maintaining fiscal balance while continuing to support growth-oriented spending, which has played a crucial role in stabilizing the economy. Describing GST as a pivotal tax reform, Das noted that it has transformed the country into a unified market, reduced the dual impact of taxes, and promoted the formalization of the economy.
The revival of the banking sector is another defining feature of India’s economic resilience, according to Das. A stronger banking system has supported investment and economic activities. He pointed to substantial investments in the transport and logistics sectors as further strengthening the economy’s capacity. Initiatives like PM Gati Shakti, the National Logistics Policy, Sagarmala, and Udaan have reduced barriers to economic activity and laid a solid foundation for investment-driven growth.
In terms of energy security, Das remarked that India has fortified its position by developing a balanced energy mix that includes fossil fuels, renewable energy, biofuels, and nuclear energy, helping to mitigate the impact of external energy shocks.
Das observed that India is also witnessing a resurgence in its manufacturing sector. The Production Linked Incentive (PLI) schemes, semiconductor investments, automation, and Industry 4.0 technologies have rejuvenated manufacturing.
Looking ahead, he identified five key pillars for India’s future growth: artificial intelligence (AI), deep and developed financial markets, strategic self-reliance, sustainable development, and human capital. He stressed the importance of maintaining the momentum of reforms, as India’s goal is not just rapid growth but achieving long-term, sustainable, and resilient development. The country’s future economic success will depend on how effectively it advances reforms, investment, innovation, and human resource development.
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