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Shaktikanta Das, the Principal Secretary-2 to PM Narendra Modi, has said that India is poised to contribute about one-fifth of the world's Gross domestic product (GDP) growth on the back of robust domestic demand and prudent macroeconomic and financial sector policies, which enabled it to withstand ‘external shocks’. He emphasised that India's underlying priority in free trade agreement negotiations with the US and other countries is to secure fair and balanced agreements in the best interest of the Indian people. India continues to demonstrate remarkable dynamism and resilience amid an uncertain global environment.

Noting that the global economy was experiencing a phase of unprecedented uncertainty and fundamental reset, the former governor of the RBI said the rules-based trading framework, promoting globalisation and free trade for over eight decades, is facing a challenge. He stated that the situation has changed from the days when it was considered that the world was flat and that it should become one market. He added that cost competitiveness and the principles of comparative advantage across countries were supposed to be the guiding principles, but a fundamental change has crept in.

He further said that the vulnerability in global supply chains has led many nations to rethink their external dependencies and give higher importance to supply chain resilience over cost efficiency. He said strategic autonomy is now a top priority and this transformation is also evident in the growing influence of regional trade agreements, which reflect a shift towards more fragmented yet practical trade alliances. He noted that the year 2025, in a nutshell, is a pivotal year in terms of global economic trajectory. He added that guided by a decade of structural reforms and strategic global positioning under the vision of ‘aatmanirbhar’ Bharat, the nation has successfully weathered multiple global headwinds.