India remains a ‘bright spot’ amid global uncertainty: Shaktikanta Das
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India remains a “bright spot” in an uncertain global economy, with high-frequency indicators pointing to broad-based economic momentum, Principal Secretary-2 to the Prime Minister Shaktikanta Das said.
Speaking at the launch of the India and Emerging Economic Order Forum (IEOF), organised by the Delhi School of Economics (DSE) and the Research and Information System for Developing Countries (RIS), Das said both urban and rural demand remained strong, supporting economic activity. “High-frequency indicators such as GST collections, electricity generation, rail freight movement, wholesale and retail vehicle sales, and similar other trends point to broad-based economic momentum,” he said. Das also called for greater efforts to reduce India’s dependence on imported energy.
India recorded average annual real GDP growth of 7.9% between FY22 and FY26 while the economy grew 7.8% in the first quarter of FY27, Das said. He attributed the sustained momentum to domestic demand, industrial and services activity, and a series of structural reforms.
These include the introduction of the GST, the Insolvency and Bankruptcy Code, flexible inflation targeting, public-sector bank recapitalisation, the Real Estate (Regulation and Development) Act (RERA), and the development of India’s digital public infrastructure.
Das, a former Reserve Bank of India governor, also pointed to developments in the space, nuclear energy and domestic energy exploration sectors as areas that could offer lessons for other developing economies.
Global South’s growing economic footprint
Das said the changing global economic landscape presented significant opportunities for developing economies, with their collective voice capable of playing a larger role in shaping global economic outcomes.
“Global South economies continue to face asymmetric challenges from the current developments in the global economy, trade, and geopolitics,” he said. These challenges, he added, would require stronger international cooperation, sustainable development financing and a more inclusive and representative global economic order.
According to Das, the economic centre of gravity is shifting eastwards, with the Global South steadily increasing its footprint in the global economy and geopolitics. These changes are reshaping global trade and economic relationships and are likely to have a lasting impact on how countries conduct business and trade.
“The rise of the Global South is one of the most defining features of the transformation taking place in the international geoeconomic landscape today,” he said, adding that the Global South must “dream together” and “actualise that dream together”.
Das said developing economies had made progress not only on economic indicators but also on social outcomes, including reductions in extreme poverty, higher life expectancy, and wider access to education.
However, he flagged persistent challenges, including poverty, debt vulnerabilities, infrastructure gaps, climate change, food and energy insecurity, unequal access to technology and demographic pressures. Around 120 crore young people are expected to reach working age over the next decade, he noted.
He said the newly launched IEOF could serve as a platform for research, policy dialogue and knowledge-sharing among countries of the Global South. He suggested that the forum focus on areas including global supply chains and innovation ecosystems, policy evaluation, climate finance and resilience, urbanisation and infrastructure financing, local-currency financing, and financial inclusion.