Shaktikanta Das, Principal Secretary-2 to Prime Minister Narendra Modi, announced that India is set to drive approximately one-fifth of global GDP growth. This impressive resilience, he explained, stems from strong domestic demand and carefully crafted macroeconomic and financial policies that effectively buffer the nation against external economic turbulence.
Speaking at a Pune event on Saturday, October 11, 2025, Mr. Das stressed India’s core objective in ongoing free trade agreement (FTA) discussions with the U.S. and other nations: to secure equitable and mutually beneficial agreements that truly serve the Indian populace.
Mr. Das highlighted India’s ‘remarkable dynamism and resilience’ in navigating today’s unpredictable global landscape.
His remarks were made during the 85th Kale Memorial Lecture at Pune’s Gokhale Institute of Politics and Economics, where he spoke on ‘Indian Economy in a Changing Global Order’.
Observing a period of profound uncertainty and structural transformation in the global economy, Mr. Das pointed out that the established, rules-based trading system—which has advocated for globalization and free trade for more than eighty years—is now confronting significant challenges.
He explained that the notion of a ‘flat world’ and a unified global market, once prevalent, has undergone a drastic shift. While cost efficiency and comparative advantage were traditionally the driving forces, a foundational change in economic thought has emerged, he noted.
“The landscape has fundamentally transformed,” Mr. Das declared. He elaborated that the global economy and trade are now highly fragmented, with long-standing rules being challenged and new standards still forming. Both the COVID-19 pandemic and the conflict between Ukraine and Russia have significantly hastened a global shift towards greater self-reliance.
The former RBI governor highlighted that vulnerabilities within global supply chains have prompted many countries to re-evaluate their reliance on external sources, prioritizing supply chain resilience above mere cost efficiency.
“Strategic autonomy has become a paramount concern,” he stated, noting that this transformation is also reflected in the rise of regional trade agreements, signaling a move towards more localized, practical trade partnerships. He concluded that “2025 is unequivocally a pivotal year for the global economic path.”
Thanks to a decade of structural reforms and a strategic global stance aligned with the ‘Aatmanirbhar Bharat’ (Self-Reliant India) vision, the nation has adeptly navigated numerous global economic challenges, Mr. Das emphasized.
He reiterated that strong domestic demand, coupled with carefully managed macroeconomic and financial sector policies, has equipped India to absorb various external shocks, positioning the country to generate approximately one-fifth of the world’s GDP growth.
India, he noted, has been proactively restructuring its trade relationships to adapt to the evolving global economic landscape.
“Currently, India is a signatory to 14 Free Trade Agreements (FTAs) and six Preferential Trade Agreements (PTAs), with the U.K., Australia, and the UAE recently joining its FTA partners,” he informed.
Mr. Das also mentioned that India and the member nations of the European Free Trade Association (EFTA)—Iceland, Liechtenstein, Norway, and Switzerland—finalized a broad Trade and Economic Partnership Agreement in March 2024.
“India is currently engaged in FTA negotiations with several key partners, including the U.S., the EU, Peru, Oman, and New Zealand,” he revealed. “Our primary goal in these discussions is always to achieve fair and balanced agreements that best serve our nation and its citizens.”
In this shifting global trade environment, it is crucial to recognize and build upon the strong economic foundations and the impactful structural reforms that have continually bolstered the Indian economy.
“These elements have been instrumental in allowing India to successfully navigate the complexities of the current global order,” he concluded.