He pointed out that amid uncertainty in the global trade landscape, India should focus on robust fundamentals that are pillars of its economic growth, along with structural reforms that have strengthened these pillars.
Das was delivering the 85th Kale Memorial Lecture on ‘Indian economy in a changing global order’ during the convocation at Pune-based Gokhale Institute of Politics and Economics.
Balanced Approach?
The former RBI governor said, “India is poised to contribute about one-fifth of the world’s GDP growth”. Reforms such as the flexible inflation targeting framework, Insolvency and Bankruptcy Code and goods and services tax have “boosted investors’ confidence, improved ease of doing business and encouraged formalisation of the economy”, he said.
Structural reforms like the high-level committee on non-financial regulatory reforms, the Nuclear Energy Mission for Viksit Bharat targeting 100 GW nuclear power capacity by 2047, the National Critical Mineral Mission and the India Semiconductor Mission have the potential to boost the economy, he added. Stressing the importance of domestic reforms, Das said it has driven India to become the fourth-largest economy in 2025 and is likely to help the country become the third-largest economy.
While measures such as adoption of technology for delivery of services, FDI reforms, opening up sectors like space and mining to private sector participation and rationalisation of corporate tax will be key to powering the Indian growth story, industrial growth will be propelled forward by a combination of traditional and emerging sectors. “Traditional manufacturing industries such as electronics, auto components, chemicals and pharmaceuticals are projected to grow steadily. At the same time, new-age and high-growth sectors are also expected to expand rapidly, benefiting from supply chain diversification and strategic policy support,” he said.
Das also mentioned that even as the government has been on a path of fiscal consolidation, it has given impetus to capital and other developmental expenditure.
Three recent mega initiatives such as the Pradhan Mantri Viksit Bharat Rozgar Yojana, the Research, Development and Innovation Scheme and the package to revitalise India’s shipbuilding and maritime ecosystem, with a combined outlay of over Rs 2.5 lakh crore, are expected to make an impact on the Indian economy.
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