Shaktikanta Das, PM's Principal Secretary-2, says India within striking distance of 8% growth

Shaktikanta Das, Principal Secretary-2 to the Prime Minister of India, said India’s real GDP grew by 7.8% in the first quarter of the current financial year, supported by strong domestic demand and investment conditions.

“... Despite such a global environment, India's real GDP grew by an impressive 7.8% in the first quarter of the current financial year, with strong domestic demand and investment conditions. This quarterly growth has come on top of 7.9% average annual GDP growth recorded during the post-COVID period of 5 years, that is, from 2021-22 to 2025-26,” Das said while speaking at the Kautilya Economic Conclave 2026.

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“In fact, as pointed out by my former colleague at the Reserve Bank of India, if the period from July-September 25-26 to April-June 26-27 is taken into account, real GDP growth in India just exceeds 8%. This resonates with my statement to Financial Times London a few months ago that India is within a striking distance of 8% growth...” he said.

To secure resilient and long-term economic expansion, India must maintain its momentum on structural reforms while actively strengthening its productive capabilities, he added.

Das emphasized that the nation's strong economic performance in recent years is rooted in enhanced governance, robust macroeconomic stability, and deliberate investments toward future capacity.

A central element of this transformation has been the development of institutional digital systems. Das cited India's digital public infrastructure—specifically the "JAM trinity" combining Jan Dhan accounts, Aadhaar, and mobile networks—as critical in delivering swift financial support throughout the COVID-19 pandemic.

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"Digital governance has reduced information asymmetries, streamlined administrative processes, and enhanced accountability," Das said, adding that direct benefit transfers had resulted in estimated savings of around Rs 5.1 lakh crore through reduced leakages in welfare programmes.

Addressing stability at the macro level, Das identified several foundational pillars: clear inflation targets, monetary credibility, fiscal discipline, broad tax reforms, market integration, a healthier financial system, and cautious management of the external sector.

He underscored the financial domain as a major engine driving economic output, bolstered by policy frameworks like the Insolvency and Bankruptcy Code, bank recapitalization drives, and tightened regulatory oversight.

"Gross non-performing assets have fallen sharply to 1.68 per cent in June 2026, while bank profitability has improved significantly," Das said.

Furthermore, he credited major capital allocations in physical infrastructure, logistics networks, energy transition, and domestic manufacturing for solidifying the country's economic bedrock.

Looking forward, Das outlined five pivotal themes expected to direct India's upcoming growth phase: capitalizing on artificial intelligence, deepening financial markets, building strategic self-reliance, advancing climate leadership and green development, and expanding investments in human capital.

While highlighting AI's potential to revolutionize public services, healthcare, education, and scientific research, he cautioned that key challenges—including data governance, algorithmic bias, AI safety, and cybersecurity—must be carefully managed.

"The journey ahead is focused on capitalising on emerging opportunities," Das said.

Concluding his remarks, he noted that the national priority has evolved beyond swift growth toward a broader commitment to "grow sustainably and resiliently over the long term", describing ongoing reform efforts as essential to fulfilling the Viksit Bharat 2047 roadmap.