Delivering the first Bibek Debroy Memorial Lecture on the them Indian Economy: A Story of Rising Credibility, Shaktikanta Das, principal secretary 2 to prime minister, said the global economy is at an inflection point, with geopolitical rivalries, protectionist trade policies and weakening multilateral institutions reshaping cross-border commerce and investment flows.
He said India is on the path to “Viksit Bharat” with “wind in its sails” due to the Centre’s policies.
Das acknowledged that there will will be headwinds and challenges emanating from “known and unknown” sources, but the economy remains resilient with macroeconomic stability as its bedrock.
“Traditional multilateralism, which once anchored global governance, is under severe strain,” Das said. Against this backdrop, India is recalibrating its economic and strategic posture, combining its commitment to multilateralism with a more pragmatic approach to partnerships and national resilience, the offficial noted.
“We acknowledge that the multilateral system must be revitalised, even as we adapt to new alignments,” he said.
Trade and supply chains, earlier viewed as neutral drivers of globalisation, are increasingly being deployed as strategic tools, Das said, while highlighting that restrictions on technology flow, labour mobility and access to critical inputs such as semiconductors, rare earths, energy and pharmaceuticals have heightened vulnerabilities, particularly for emerging economies.While some realignment of supply chains is inevitable, he cautioned that excessive fragmentation could raise costs, reduce efficiencies and amplify economic volatility in emerging markets and the Global South.
India, he said, embraced “Atmanirbharta” (self-reliance) as a guiding policy framework to build domestic capacity in critical goods and technologies, reduce over-dependence on foreign suppliers. The approach, articulated by Prime Minister Narendra Modi in 2020, is not isolationist but aimed at strengthening India’s role in global value chains, he noted.
“Atmanirbharta” rests on two pillars-economic self-reliance and geopolitical autonomy-which enable the country to sustain growth while retaining strategic flexibility, the official said.
Growth Track
Das said the country is on track for a decade of accelerated growth, driven by a young, digitally-skilled workforce, expanding formalisation of the economy and homegrown innovations in AI, health and space. The Indian economy is projected to expand 7.4% in 2025-26.