India is being seen as an example of how economies can manage global uncertainty through reforms, policy discipline, and innovation, according to Shaktikanta Das, Principal Secretary-2 to the Prime Minister.
He said the global economy is facing repeated disruptions, including geopolitical tensions, supply chain breakdowns, shifting demand, and pressure on public finances after the COVID-19 period. Ongoing conflicts in regions like West Asia have further disturbed trade routes, logistics systems, and labour markets.
Despite this, India has maintained strong performance. Between 2021-22 and 2025-26, the country recorded an average annual GDP growth of 7.8%, showing resilience and steady recovery.
He pointed to several factors behind this stability. These include controlled inflation, strong foreign exchange reserves, and consistent reforms that have improved investor confidence. Large investments in infrastructure such as roads, railways, ports, and digital systems have helped reduce bottlenecks and improve efficiency.
Domestic demand remains a major driver, with consumption contributing more than 55% of GDP, supported by a young population. Financial systems have also strengthened, with banks and non-banking institutions recovering well after the pandemic.
Digital platforms like UPI and Aadhaar have expanded financial inclusion and improved economic formalisation. At the same time, fiscal policy has balanced consolidation with higher capital spending to support growth.
Das also noted that India’s policy response during crises has been measured, combining stimulus with gradual withdrawal to avoid long-term distortions. Repeated shocks have pushed countries to prioritise resilience over cost efficiency, especially in supply chains.
India’s “Atmanirbhar Bharat” approach, he said, is about strategic autonomy rather than isolation, focusing on building domestic capacity while staying globally connected. He added that India is strengthening its position in manufacturing, including mobile phones, semiconductors, and pharmaceuticals, while digital systems continue to drive inclusion and growth.
