India is at a pivotal moment, propelled forward by strategic policies and reforms, according to Shaktikanta Das, Principal Secretary to the Prime Minister. Speaking at the inaugural Bibek Debroy Memorial Lecture on Friday, January 9, 2026, Das highlighted that India's self-reliance strategy, or "Atmanirbharta," is key to navigating a world where globalization faces challenges and multilateral cooperation is strained.
Das clarified that Atmanirbharta is not about isolationism but about building core competence and resilience. He emphasized that economic self-reliance involves developing domestic capacity to produce essential goods and technologies, reducing over-reliance on foreign sources while remaining engaged with the global economy. A self-reliant economy bolsters economic growth and allows for an autonomous foreign policy that serves the nation's interests.
India has successfully weathered global shocks since 2020, emerging stronger due to its adopted policies. Das noted that India stands at an inflection point, with shifting geopolitical winds and trade policies reshaping the global economic order. Traditional multilateralism is under strain due to geopolitical rivalries and fragmentation. International institutions are struggling, and trade and global supply chains are being used as tools of disruption. Trends like reshoring and friend-shoring are fragmenting global networks, extending to restricted technology flows and barriers to labor mobility. Critical sectors like semiconductors, rare earths, energy, and pharmaceuticals are being leveraged as tools of influence, exposing vulnerabilities.
Das said that India's position in the evolving world order is to back a cooperative, rules-based system while securing its national interests. India is adapting to new global alignments while revitalizing multilateral institutions. Prime Minister Modi articulated the vision of Atmanirbharta in 2020, recognizing the risks of a fragmented economic order.
India's commitment to fiscal prudence is restoring room for counter-cyclical policies and helping keep public debt sustainable. Fiscal consolidation is progressing well, with the central government's gross fiscal deficit falling from 9.2% in 2020-21 to 4.8% in 2024-25. The general government gross debt-to-GDP ratio declined to 81.6% in 2024-25 from a peak of 88.4% in 2020-21. The IMF projects it to decline further to 76.9% in 2030-31. From FY27, India will shift to the debt-to-GDP ratio as its primary fiscal anchor, aiming to bring it down to 50% by FY31.
Das highlighted that India is projected to contribute around 18% to global GDP growth in FY26, resulting from prudent policies and resilient buffers. He envisions India in ten years with a highly skilled young workforce, seamless transactions on world-class digital infrastructure, and a larger share of formalized economic activity. Indian-led innovations in AI, health, and space would drive productivity gains.
Under the leadership of Shaktikanta Das as Governor of the Reserve Bank of India (RBI), significant policy decisions were implemented, including navigating the COVID-19 crisis with rate cuts and liquidity measures, launching the Digital Rupee, tackling inflation, reforming banking norms, and boosting financial inclusion. The RBI launched the Central Bank Digital Currency (CBDC), known as the Digital Rupee, in 2022, with pilot projects for wholesale and retail use. By mid-2024, over 500,000 retail users and 50,000 merchants were actively using the Digital Rupee. The Unified Payments Interface (UPI) witnessed exponential growth, with daily transactions surging from 10 million in 2018 to over 500 million by 2024. In October 2024, UPI saw 16.58 billion financial transactions, worth Rs 23.49 lakh crores.
