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India must sustain its reform momentum and focus on building long-term productive capacity to achieve resilient and sustainable growth, Shaktikanta Das, Principal Secretary-2 to the Prime Minister, said at the Kautilya Economic Conclave.
Das said India's recent economic resilience has been supported by stronger governance and state capacity, macroeconomic stability and investments in long-term productive capacity. One of the key areas of institution building has been India's digital public infrastructure, with the "JAM trinity" of Jan Dhan bank accounts, Aadhaar and mobile connectivity enabling rapid transfers of financial benefits during the COVID-19 pandemic, he said. "Digital governance has reduced information asymmetries, streamlined administrative processes, and enhanced accountability," Das said, adding that direct benefit transfers had resulted in estimated savings of around Rs 5.1 lakh crore through reduced leakages in welfare programmes. On macroeconomic stability, Das highlighted inflation targeting and monetary policy credibility, fiscal prudence, tax reforms and market integration, restoration of financial sector health and prudent external sector management as key pillars. He said India's financial sector had emerged as a strong pillar of economic growth, supported by measures including the Insolvency and Bankruptcy Code, bank recapitalisation and regulatory oversight. "Gross non-performing assets have fallen sharply to 1.68 per cent in June 2026, while bank profitability has improved significantly," Das said. He also pointed to infrastructure and logistics investments, energy diversification and manufacturing development as key contributors to India's long-term productive capacity. Looking ahead, Das identified five areas that would shape India's next phase of growth harnessing artificial intelligence, deepening the financial sector, promoting strategic self-reliance, sustainable development and climate leadership, and investing in human capital. He said AI could enhance productivity, public service delivery, scientific research, healthcare and education, while stressing the need to address data governance, cybersecurity, algorithmic bias and AI safety. "The journey ahead is focused on capitalising on emerging opportunities," Das said. He added that India's strategy was no longer simply to grow rapidly but to "grow sustainably and resiliently over the long term", making continued reform momentum critical to achieving the Viksit Bharat 2047 vision. (ANI)
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