India could face headwinds from ‘known and unknown sources’ despite weathering perfect storms: Shaktikanta Das

India could face headwinds and challenges emanating from “known and unknown sources” even as it has successfully emerged from what appeared to be perfect storms caused by multiple global shocks since 2020, Principal Secretary-2 to the Prime Minister, Shaktikanta Das, said.

“India stands today at the cusp of a historic journey – from being an incredible India to a credible India. There will be headwinds and challenges emanating from known and unknown sources,” Das said, adding that India had emerged from “perfect storms caused by multiple global shocks since the COVID-19 year of 2020”.

Speaking at the Bibek Debroy Memorial in Delhi, he said that with the policies adopted by the country, “the wind is in our sails” and that India is “indeed on our path to Viksit Bharat”.

Das said trade and supply chains, which were once seen as neutral conduits of globalisation, are increasingly being used as “instrumentalities of disruption and dominance”. He pointed to reshoring and friend-shoring of supply chains and prioritisation of strategic alliances over global integration, saying these trends are fragmenting global networks.
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He said this reflects broader geo-economic fragmentation, including restricted technology flows, barriers to labour mobility and uncertainty around global public goods. According to him, critical sectors such as semiconductors, rare earths, energy and pharmaceuticals are now being leveraged as tools of influence, exposing vulnerabilities, especially in dependent economies.

“Recognising these realities, India’s stance in the changing world order is clear. India stands for a cooperative and rules-based global system; but at the same time, we are proactively forging partnerships and strategies to secure our national interest in a world where power is more diffused,” Das said.

He said that for a little over a decade, India has maintained a “rock-solid commitment to macroeconomic and financial sector stability” despite multiple and overlapping global shocks, including the COVID-19 pandemic and conflicts in Ukraine and other flashpoints, which disrupted economic activity and trade and led to high inflation, high public debt, low growth and synchronised monetary tightening globally.

Despite these challenges, Das said the Indian economy remains resilient and is expected to be the fastest-growing major economy in the world.

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