Indian economy resilient despite global challenges: Shaktikanta Das

India's economy remains resilient despite geopolitical headwinds and trade barriers, with real gross domestic product projected to grow 7.4 per cent in FY26, the principal secretary to the PM said

Principal Secretary-2 to the Prime Minister, Shaktikanta Das, on Friday said the Indian economy remains resilient and is expected to be the fastest-growing economy in the world despite geopolitical tensions and trade barriers, CNBC-TV18 reported in a social media post on X.

 

Global trade stagnation poses fresh risks

Speaking at the inaugural Bibek Debroy Memorial Lecture at the India International Centre (IIC) in Delhi, Das also cautioned that the share of trade in the global economy has stagnated, a trend that could lead to higher costs and greater vulnerabilities.

 

India is likely to contribute about 18 per cent of global growth, he added.

 

 

Institutions under strain as power becomes diffused

Das, who previously served as the Governor of the Reserve Bank of India (RBI), further said that the world today stands at a turning point with key institutions underperforming in their core mandates and critical sectors being used as tools of influence.

 

He said India continues to back a cooperative, rules-based global order while actively safeguarding its national interests in a world where power is becoming more diffused.

 

India is proactively forging new partnerships and strategic alignment, with its economic growth anchored in stability, he added.

 

India’s post-Covid growth trajectory remains strong

India's economy rebounded with an average growth of 8.2 per cent after Covid-19, he noted, adding that real gross domestic product (GDP) was likely to grow at 7.4 per cent in the current financial year. He further said that India's declining debt-to-GDP ratio will provide the economy with headroom.