Union Finance Minister Nirmala Sitharaman said India’s economic resilience has been strengthened over the past decade through fiscal discipline, infrastructure development, banking reforms and a series of structural measures.
Speaking at the 5th Kautilya Economic Conclave in New Delhi on Saturday, Sitharaman said economic resilience means being able to absorb major shocks without losing the growth trajectory while retaining enough policy space to respond to future challenges. The conclave is being held from October 3 to 5 under the theme “Resilience in an Age of Flux.”
She pointed to several risks that India managed to avoid, including a prolonged inflation spiral, fuel shortages, banking-sector stress and the need for an abrupt fiscal correction.
India’s Economic Fundamentals Remain Strong
Referring to Kautilya’s Arthashastra, Sitharaman cited the principle “kosha-purvah sarva-arambhah”, which underlines the importance of the treasury for undertaking state activities. She said strong public finances give the government greater flexibility to respond when economic conditions become difficult.
The Finance Minister highlighted several indicators while describing India’s economic position. Real GDP growth stood at 7.8 per cent in the first quarter of FY27, while CPI inflation was 4.82 per cent in August 2026. She also cited a current account deficit of 0.5 per cent of GDP in the first quarter and foreign exchange reserves of around USD 766 billion.
Reforms, Banking and Infrastructure Form Key Pillars
Sitharaman said several initiatives introduced since 2014 have contributed to the country’s economic resilience. These include the Jan Dhan-Aadhaar-Mobile (JAM) framework and Direct Benefit Transfer, along with schemes such as PM Awas Yojana, Swachh Bharat, Ujjwala, Ayushman Bharat and food-security measures.
She also highlighted the scale of credit extended under PM MUDRA Yojana, with more than 52 crore collateral-free loans sanctioned. Banking-sector reforms and the 18.8 per cent increase in non-food credit during the year to August 2026 were also cited as part of the broader financial-sector strengthening.
Infrastructure development has remained another major focus. Capital expenditure for FY27 was budgeted at Rs 12.22 lakh crore, while the national highway network has expanded by around 61 per cent since 2014. The number of operational airports has also more than doubled during the period.
Strategic Priorities for the Years Ahead
Looking ahead, Sitharaman identified strategic resource security, predictable global trade, skill development and greater private-sector participation in research and innovation as important areas for India.
She said efforts to reduce dependence on vulnerable single-source supplies would include initiatives such as the National Critical Mineral Mission, Rare Earth Corridors, India Semiconductor Mission 2.0 and the development of small modular reactors.
Sitharaman stressed that economic resilience cannot be treated as a one-time exercise. She said India would need to continue strengthening its economic foundations to support higher productivity, improved employment opportunities and broader participation as the country works towards the goal of Viksit Bharat by 2047.
Disclaimer
This article is intended for general informational purposes and is based on statements and figures attributed to the Finance Minister and publicly available reports. Economic data and government policies can be revised or updated. Readers should refer to official government releases and the latest economic data for the most current information.