New Delhi, Oct 3 — India has maintained a high level of growth amid global uncertainty due to sound macroeconomic fundamentals, and investing in resilience is economically rational, P.K. Mishra, Principal Secretary to the Prime Minister, said here on Saturday.
Speaking to the media on the sidelines of the ‘5th Kautilya Economic Conclave ', Mishra said, “I think the subject of the conference is totally different. I was speaking about resilience, and that it also costs”.
“It has a cost, but how much does it cost? And in the current context, where the uncertainty is because of the global development, how is India able to cope with all this, and how has it successfully faced the pandemic and other crises? India has also maintained a high level of growth and maintained macroeconomic fundamentals,” he noted.
According to the Principal Secretary, India’s main strength is macroeconomic fundamentals, which are very strong.
“We have been able to diversify our supply chain. We have also been able to have wider trade relationships, more FTAs, and more trade relationships. So, we're also trying to increase our manufacturing capability. So, in that sense, we would like to continue to be open, at the same time, you know, less vulnerable. So, we would like to avoid vulnerability, at the same time, remain open to the world,” he said.
The top bureaucrat said that economic decisions are taken not fully knowing what the results will be. There’s always an element of risk.
According to him, the globe is increasingly confronted not just with risk but also uncertainty. The distinction is now in sharp focus between risk-taking and uncertainty, he noted.
Referring to the Strait of Hormuz crisis, Mishra said that choke points become sources of vulnerability and that tariffs sometimes become instruments of weaponisation.
The energy transition is being repriced along with everything else. Other restrictions are being increasingly used for strategic purposes.
“The question is not whether globalisation has ended, but how do we preserve the gains while making economies less vulnerable to shocks and concentration?’ he said.
“India’s electronics sector is a good example. The same is visible in the pharma and semiconductor sectors,” he added.