Vice President stresses inclusive growth, policy flexibility amid global uncertainty

Vice President C.P. Radhakrishnan, speaking at the inauguration of the fifth Kautilya Economic Conclave, said India’s transition towards a developed economy would be meaningful only if economic growth is inclusive and its benefits reach every section of society.

Radhakrishnan said policymakers must understand ground realities while framing economic policies, particularly at a time when geopolitical tensions, changing global trade patterns, rapid technological advances and climate challenges are creating greater uncertainty.

“Change is the only constant factor. But we never thought the changes will be so fast, so dynamic,” he said, calling for greater flexibility and decisiveness in policymaking. He said democratic institutions and consensus-building were important for ensuring that economic reforms remained sustainable. While reforms in a democracy could take time, the process helped build public acceptance and gave them greater durability, he said.

India, he added, had demonstrated that economic growth and democracy could progress together. “The process may sometimes be gradual, and sometimes we may lose our patience also inside, but we should never show it outside,” he said, stressing the importance of consensus in pushing reforms forward.

Financial inclusion, women-led growth key to resilience

Radhakrishnan highlighted financial inclusion and formalisation as important pillars of India’s economic resilience. He pointed to the Jan Dhan-Aadhaar-Mobile framework and direct benefit transfers, saying they had strengthened transparency and reduced dependence on intermediaries.

According to the figures cited by him, more than 590 million Jan Dhan accounts had been opened by August 2026, while cumulative direct benefit transfers had crossed ₹53.4 trillion.

He also cited the Goods and Services Tax as a major structural reform that had helped integrate and formalise the economy. The number of registered GST taxpayers, he said, had risen from more than 6 million in 2017 to over 16 million by May 2026.

Radhakrishnan also highlighted the role of self-help groups and women in driving economic activity. Under the National Rural Livelihoods Mission, more than 9 million self-help groups cover over 100 million rural women, he said, adding that these groups were increasingly becoming platforms for entrepreneurship and income generation.

“A resilient economy is not built only in the boardrooms, financial markets, and large infrastructure projects alone,” he said, adding that resilience was also built when women, small enterprises and self-help groups gained access to formal economic opportunities.

He said more than 250 million Indians had moved out of extreme poverty over the past decade, describing it as a significant achievement. At the same time, he stressed that India’s development should be measured not only through GDP but also by how its benefits reach different sections of society.

Looking ahead, Radhakrishnan said India would need to strengthen research and education partnerships with global institutions, develop human capital and create greater opportunities for enterprises and innovation. “In an age of flux, India’s resilience will come not from resisting change, but from embracing it with confidence, inclusion, and a free, collective endeavour,” he said.