Economy needs more than resilience

India’s stability amid global turmoil is remarkable, but hard-nosed reforms are essential to sustain growth

- M GOVINDA RAO

Speaking at the Kautilya Economic Conclave in Delhi, the Union finance minister is reported to have alluded to the enormous resilience the Indian economy has acquired in the face of global turmoil by firmly anchoring economic growth in domestic consumption.

This was re-emphasised by the Reserve Bank of India (RBI) governor, who stated that the country has settled well into a resilient growth equilibrium, defying all odds to provide stability in a volatile global environment.

Surely, these statements infuse a lot of confidence, particularly in the wake of enormous uncertainty caused on the external front by global conflicts and the Trump tariffs. However, we need a reality check. Complacency about our ability to accelerate growth to reach a developed country status by relying solely on domestic consumption to anchor the process is misplaced. Rather than taking the current developments as a given, it is necessary to see the challenge posed by the prevailing situation as an opportunity and respond effectively to make the economy competitive.

Indeed, dependence should not be allowed to turn into compulsion, but the solution lies in engaging actively with the world by acquiring enough strength. This is necessary not only to earn global respect as an economic power to be reckoned with, but also to enhance the welfare of the people of the country.