India is on the cusp of achieving 8% GDP growth, according to Shaktikanta Das, Principal Secretary-2 to the Prime Minister. Speaking at the Kautilya Economic Conclave, Das underscored the nation's current position at a pivotal stage in its developmental journey, emphasizing a strategic shift from rapid expansion to sustainable and resilient long-term growth.
Navigating Global Economic Headwinds
Das acknowledged a challenging global economic landscape marked by ongoing conflicts, fragmentation, unilateralism, and technological blockades. He pointed to energy price volatility, rising inflation, and the prospect of restrictive monetary policies by central banks worldwide as significant concerns. Furthermore, high public debt levels in numerous advanced economies are leading to increased bond yields and reduced fiscal capacity to address future shocks.
India's Resilience and Growth Trajectory
Despite these global complexities, India's economic performance remains robust. The nation recorded a real GDP growth of 7.8% in Q1FY27, driven by strong domestic demand and investment. Over the five-year period from FY22 to FY26, post-pandemic, India achieved an impressive average annual GDP growth of 7.9%. Das further noted that real GDP growth for the combined period of July-September 2025-26 to April-June 2026-27 is projected to exceed 8%.
A key factor in India's strong position, Das explained, has been the proactive development of governance foundations over the past twelve years, predating emerging crises. These foundations include:
- Strengthening governance and state capacity.
- Building macroeconomic stability through flexible inflation targeting, fiscal prudence, and improved expenditure quality.
- Implementing tax reforms and market integration.
- Restoring the health of the financial sector.
- Prudent management of the external sector.
Investment in long-term productive capacity and diversification of energy sources have further bolstered India's ability to withstand economic shocks.
Charting the Path to Viksit Bharat 2047
To capitalize on future opportunities and progress towards the vision of Viksit Bharat 2047, Das outlined several crucial measures. These include harnessing Artificial Intelligence, attracting long-term finance and patient capital, pursuing strategic self-reliance, ensuring sustainable development, and maximizing human capital. He stressed that sustaining the current reform momentum is critical for achieving India's ambitious long-term goals.