India needs competitive capabilities, import diversification: PK Mishra

New Delhi: India's economic resilience lies in strengthening domestic capabilities, undergoing diversification, and remaining open to the world, said a senior official in the Prime Minister's Office (PMO).

Addressing a session titled 'A World Priced for Risk' at the annual Kautilya Economic Conclave, P K Mishra, principal secretary to the Prime Minister, said self-reliance doesn't mean closing doors to the world but being self-sustaining and self-generating.

The world in the near future will belong to those who can be steady without being closed, careful without being fearful, and ambitious without being naive, and India intends to be such a country, he said.


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"The world is confronting not merely risk, but uncertainty," said Mishra, underlining that geography has returned to the centre of the economic table amid rising global uncertainty.

"Disruption to shipping routes can affect energy prices thousands of kilometres away, while the concentration of critical minerals and their processing creates new vulnerabilities," he said.

Mishra said India has maintained substantial stocks, increased domestic production where possible, diversified procurement, and ensured that alternative supply routes and suppliers are available.

Mishra said the number of countries from which India imports crude oil has increased to 43 from 27, which is "very large".

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Mishra cautioned that strengthening domestic capacity shouldn't translate into import substitution at any cost. Domestic capabilities need to be competitive, scalable and capable of eventually serving global markets, he said.

Mishra cited developments in electronics, semiconductors and pharmaceuticals as examples of strategic sectors where India is seeking to strengthen domestic capabilities while expanding its role in global production networks.

He pointed out that export restrictions, sanctions and tariffs become instruments of economic policy and are sometimes even weaponised.

Speaking at the same session, Nicholas Stern, IG Patel Professor of Economics and Government at the London School of Economics said India is in a "special position" to lead during a period of escalating climate and energy security risks.

"India is a major player at centre stage, and the world needs exactly that," said Stern.