Shaktikanta Das: India to Shape Global Growth This Decade

A Beacon of Stability in a Turbulent World

Amid persistent global turmoil, India stands out as a picture of stability and is poised to not just participate in but actively shape global economic growth in the coming decade. This was the central message from Shaktikanta Das, former Reserve Bank of India (RBI) governor and current Principal Secretary to the Prime Minister. Speaking at recent events, Das emphasized that India's robust economic performance is the result of precise, strategic interventions that have fortified its fundamentals against a fragile international backdrop.

Navigating Global Headwinds

The global economy is currently navigating significant challenges, including geopolitical fragmentation, the realignment of supply chains, and uneven economic momentum. Das noted that trade and supply networks, once neutral instruments of globalization, are now being used for strategic influence. In this environment, where many advanced economies are grappling with elevated public debt and slowing growth, India has demonstrated remarkable resilience. According to Das, the country has successfully weathered multiple shocks since 2020, transitioning from an 'incredible' to a 'credible' economic power.

Strong Economic Performance and Projections

India's economic data underscores this narrative of strength. Post-pandemic, the country has accounted for nearly one-sixth of the world's real GDP growth and remains the fastest-growing major economy. Official estimates project the economy to expand by 7.6% in 2025-26, following a 7.1% growth in 2024-25. Das highlighted that the average real GDP growth in the five years since the pandemic stands at an impressive 7.8%. This expansion is distinguished by the timely rollback of fiscal and monetary support provided during the COVID-19 crisis, which prevented the buildup of long-term economic imbalances.

The Nine Pillars of India's Growth Story

Das attributed India's sustained high growth combined with macroeconomic stability to nine foundational building blocks. These pillars represent a comprehensive strategy that has strengthened the economy from multiple fronts. They include deep structural reforms like the Goods and Services Tax (GST) and the Insolvency and Bankruptcy Code (IBC), which have unified the market and transformed the credit culture. Another key pillar is fiscal consolidation pursued alongside record capital expenditure, which has boosted infrastructure development without compromising fiscal health.

A concerted push for manufacturing through Production-Linked Incentive (PLI) schemes has triggered a resurgence in sectors like electronics, pharmaceuticals, and defence. This is complemented by a deepening of services exports and the expansion of global capability centres. Furthermore, the strengthening of bank and corporate balance sheets, with gross non-performing assets falling to multi-year lows, has created a healthy financial environment. The expansion of digital public infrastructure, led by the Unified Payments Interface (UPI), has accelerated financial inclusion, while an assertive trade strategy ensures India's growing integration into the global economy.

'Atmanirbhar Bharat': A Strategy of Resilience

Das clarified that the vision of 'Atmanirbhar Bharat', or self-reliance, is not a move towards isolationism. Instead, it is a strategic approach to build domestic capabilities, enhance resilience, and reduce excessive dependence on external sources for critical goods and technologies. He explained that economic self-reliance strengthens the sustainability of growth and enables an autonomous foreign policy that allows India to engage with the world in its best national interest. This strategy ensures that India's rise is inclusive and beneficial not only for itself but for the global economy.

Future Growth Frontiers

Looking ahead, Das identified several key opportunities that will drive the next phase of India's growth. These include deeper trade integration, productivity gains driven by Artificial Intelligence (AI), and a continued manufacturing resurgence in high-tech areas such as electronics, semiconductors, defence, and green energy. He stressed the need for India to run a 'marathon and a sprint simultaneously'—maintaining macroeconomic and financial stability while aggressively pursuing these new frontiers of growth to achieve its goal of becoming a developed nation, or 'Viksit Bharat', by 2047.

Conclusion: Shaping the Next Decade

In conclusion, Shaktikanta Das presented a confident outlook for the Indian economy. The combination of structural reforms, fiscal prudence, and strategic initiatives has created a resilient and dynamic economy. As the world grapples with uncertainty, India's stability and clear growth trajectory position it to play a pivotal role in shaping the global economic landscape over the next decade.