Amid persistent global shocks and economic uncertainty, India must continue to prioritise structural reforms, strengthen domestic productive capacity in import-dependent sectors, and maintain macroeconomic and financial stability. That was the core message delivered by Shaktikanta Das, Principal Secretary-2 to the Prime Minister, at the Kautilya Economic Conclave. Das also expressed confidence that the country stands within striking distance of 8 per cent growth and that the larger vision of Viksit Bharat by 2047 remains attainable.
Growth Performance and the 8 Per Cent Threshold
Das pointed to recent data as evidence of resilience. India’s real GDP grew by an impressive 7.8 per cent in the first quarter of 2026-27, supported by robust domestic demand and favourable investment conditions. He noted that when the period from July-September 2025-26 through April-June 2026-27 is considered, real GDP growth just exceeds 8 per cent. This performance, he said, resonates with his earlier assessment that India is within striking distance of sustained 8 per cent growth.
The quarterly number sits on top of an average annual growth rate of around 7.9 per cent recorded in the five years following the pandemic. In Das’s view, these figures demonstrate that the economy has developed stronger buffers against external disruptions than in earlier periods of global stress.
Resilience Built on a Decade of Reforms
Das rejected the idea that India’s relative stability is accidental. He described it as the outcome of broad and mutually reinforcing reforms implemented over the past decade. Among the measures he highlighted were the introduction of flexible inflation targeting, the Goods and Services Tax, a sustained commitment to fiscal prudence, the expansion of digital payments, and banking-sector reforms that strengthened balance sheets and improved credit flow.
These reforms, he argued, were designed not as one-off interventions but as structural changes intended to help the economy absorb shocks and recover more rapidly. Stronger governance and state capacity, improvements in infrastructure and logistics, and investments in productive capacity have further reinforced this resilience. Initiatives such as Gati Shakti, production-linked incentive schemes and skill-development programmes were cited as examples of efforts to expand long-term industrial and logistical capability.
Building Domestic Capacity in Critical Areas
A central theme of Das’s remarks was the need to reduce import dependence in strategically important sectors. He stressed that the government is focusing on building domestic competence in areas such as energy, fertilisers and other critical inputs. The objective is not isolation but the creation of reliable domestic supply chains that can withstand global disruptions.
He illustrated the point with reference to rare-earth permanent magnets, a component essential for automobiles, electronics and other manufacturing. Following supply concerns, the government moved to develop domestic capacity in this area. Similar logic, Das indicated, applies across multiple sectors where India has historically relied heavily on imports. Strengthening these capabilities forms part of a broader strategy of strategic self-reliance that remains open to global markets and trade agreements.
Self-Reliance Without Isolation
Das was careful to distinguish strategic self-reliance from inward-looking protectionism. Aatmanirbharta, in his framing, means building stronger domestic capabilities while continuing to integrate with global value chains and concluding additional free-trade agreements. India has signed several trade deals in recent years, many with developed economies, and this outward orientation remains part of the policy approach.
The same balance appears in his comments on the financial sector and external management. Export diversification, a sustained services trade surplus, steady remittances and prudent external-sector policies have helped keep external indicators broadly resilient even as global conditions have become more fragmented and uncertain.
Priorities for the Next Phase
Looking ahead, Das identified several areas where the pace of activity must increase if India is to convert recent growth into a durable high-growth trajectory. These include harnessing artificial intelligence through indigenous foundation models, high-performance computing and semiconductor ecosystems; deepening financial markets, particularly corporate bonds, pension and insurance funds, and infrastructure financing; advancing environmental sustainability and climate-related finance; and investing in human capital.
He also emphasised the continuous need for fiscal, monetary, macroeconomic and macro-financial stability. In an environment marked by wars, supply-chain fragmentation, energy-price volatility and elevated public debt in many advanced economies, the ability to maintain stability at home becomes a competitive advantage.
Viksit Bharat and the Longer Horizon
Das located the current moment within the larger national objective of becoming a developed economy by 2047. India, he said, stands at a pivotal point in its development journey, and a leap toward that goal is within the realm of realisation. Sustaining the momentum of reforms will be essential. The strategy is no longer simply to grow rapidly for a few years, but to grow in a manner that is sustainable and resilient over the long term.
The combination of recent growth numbers, institutional reforms already in place, and a clear focus on domestic capacity in critical sectors forms the basis of his optimism. At the same time, he acknowledged that reform is never finished. There is always more to do, particularly when global conditions remain unsettled.
A Measured Case for Continuity and Ambition
Shaktikanta Das’s intervention at the Kautilya Economic Conclave offered a coherent narrative: India has built meaningful economic buffers through a decade of structural change; recent growth has brought the economy close to the 8 per cent threshold; and the next phase requires deeper domestic capabilities, continued reform and careful attention to stability. In a world still characterised by uncertainty, the emphasis on self-reliance in critical areas, open engagement with global markets, and long-term capacity building provides a pragmatic roadmap. Whether the 8 per cent mark is sustained will depend on execution, but the direction of policy, as outlined by Das, is clear.
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