Full Breakdown
Shaktikanta Das Stresses Reform-Driven Resilience and Domestic Capacity
By Drooid · · How we work
Core Event
On October 4, Shaktikanta Das, Principal Secretary-2 to Prime Minister Narendra Modi, addressed the Kautilya Economic Conclave in Delhi. He said India’s ability to weather global shocks is the result of a decade-long suite of reforms and a new focus on building domestic capacity in import-dependent sectors such as rare-earth permanent magnets.
Reform Pillars Underpinning Growth
Das identified three interlocking pillars of resilience:
- Governance and State Capacity – Expansion of digital public infrastructure (the Jan Dhan-Aadhaar-Mobile “JAM” framework) that enabled rapid benefit transfers during the COVID-19 pandemic and is estimated to have saved roughly INR5.1 trillion by curbing leakages.
- Macroeconomic Stability – Flexible inflation targeting, fiscal consolidation, the Goods and Services Tax, and a stable financial sector reinforced by the Insolvency and Bankruptcy Code and bank recapitalisation.
- Long-Term Productive Capacity – Investments in transport, logistics (PM Gati Shakti, National Logistics Policy, Sagarmala, UDAN), diversified energy sources, and manufacturing incentives.
Growth Metrics and Economic Indicators
- Real GDP expanded 7.8 % in Q1 FY 27; growth across July 2025 – June 2026 averaged slightly above 8 %.
- Gross non-performing assets of banks fell to 1.68 % in June 2026.
- The current-account deficit stood at 0.6 % of GDP in FY 2025-26.
- Solar-energy capacity reached 165 GW, with over 5 million households installing rooftop solar under the PM Surya Ghar Muft Bijli scheme.
- India’s Logistics Performance Index rank rose from 54 in 2014 to 38 in 2023, targeting the top 25 by 2030.
Domestic Capacity Building and Strategic Sectors
Das announced a “major initiative” to develop domestic production of rare-earth permanent magnets after China’s export restrictions created a global shortfall, noting that 80-90 % of supply originates from China. He also highlighted the Samudra Manthan scheme, which opens previously prohibited deep-water zones for oil and gas exploration.
He emphasized that “Atmanirbhata does not imply isolation,” stressing that self-reliance must coexist with participation in global supply chains, free-trade agreements, and strategic manufacturing.
Verbatim Quotes
- “I think the subject of the conference is totally different. I was speaking about resilience, and that it also costs” — K. Mishra, Principal Secretary to the Prime Minister
Future Priorities and Outlook
Das outlined five focus areas for the next growth phase:
1. Artificial Intelligence – Boosting productivity and public-service delivery while addressing data-governance and safety concerns.
2. Deeper Financial Markets – Expanding corporate bond markets, pension and insurance fund participation, and green-transition financing.
3. Strategic Self-Reliance – Strengthening domestic capabilities in energy, fertilisers, advanced manufacturing, and defence.
4. Sustainable Development – Advancing green hydrogen, renewable energy, and circular-economy practices.
5. Human Capital – Converting the large working-age population into a sustained source of productivity through skill development.
Das concluded that sustaining reform momentum is essential for achieving the “Viksit Bharat 2047” vision and maintaining India’s position among the world’s fastest-growing major economies.