Shaktikanta Das says India has emerged stronger from global crises.
Growth backed by reforms, macro stability and infrastructure investment.
GDP growth at 7.6% in FY26; consumption remains key driver.
India has demonstrated remarkable resilience during global crises, not only surviving them but also transforming through the turbulence to emerge stronger and exiting without creating new imbalances, said Shaktikanta Das, Principal Secretary to the Prime Minister.
“It is like entering a Chakravyuh. In a crisis, you enter a Chakravyuh. Now, if you do not know the exit route, then the economy gets stuck, and you end up creating bigger problems than the ones you initially set out to tackle,” Das said today while speaking at the AIMA National Leadership Conclave.
1 April 2026
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The ex-Reserve Bank of India governor said that India's response to a crisis has always been targeted and calibrated.
He also highlighted how crises like COVID-19 fractured global supply chains, suppressed consumer demand, and strained public finances. While the world was still trying to recover from it, war in Ukraine, escalating tariffs, and conflicts in West Asia further deepened the shock.
However, India managed to come out of it and strengthen itself. Against this backdrop, the former RBI governor highlighted India's strong economic performance, stating that real GDP growth stood at 7.6% in FY26, with an average growth of 7.8% over the past five years.
Reform-led resilience
He stressed that this performance is not incidental but the result of sustained structural reforms and policy continuity. India has combined macroeconomic stability — reflected in controlled inflation and comfortable foreign exchange reserves — with stable governance and a reform-oriented policy framework that has strengthened investor confidence.
Continued public investment in infrastructure such as roads, ports, railways, energy and digital systems has helped ease supply bottlenecks, while a young demographic profile and rising urbanisation have supported consumption, which accounts for over 55% of GDP, he noted.
Furthermore, the inflation-targeting framework has allowed flexible monetary policy without compromising long-term stability, and initiatives such as UPI and Aadhaar have deepened financial inclusion and improved fiscal efficiency. Despite pandemic-era spending pressures, India has adhered to a credible path of fiscal consolidation, while the banking and NBFC sectors have emerged stronger. Das also highlighted the importance of strategic autonomy, noting that diversified global partnerships reduce dependence on any single country and allow India to act in its national interest.
Strategy for businesses
Turning to industry, Das outlined a pragmatic approach for businesses navigating an uncertain global environment. He said companies should focus on building organisational resilience, strengthening balance sheets, diversifying supply chains and export markets, protecting employment and investing in workforce reskilling. At the same time, firms must make forward-looking investments to capture emerging opportunities as the global economic landscape evolves. He emphasised that the drivers of India’s next phase of growth are already underway, positioning the country not just to withstand global turbulence but to benefit from it.
