Principal Secretary-2 to the Prime Minister, Shaktikanta Das has said that restoration of the health of the financial sector has been the defining feature of India’s resilience in recent years. He said, India’s financial sector has emerged as a strong pillar of economic growth, supported by reforms such as the Insolvency and Bankruptcy Code, bank recapitalization and constructive regulatory oversight. He was speaking at the Kautilya Economic Conclave 2026 in New Delhi today. Mr Das highlighted that the Gross non-performing assets have fallen sharply to 1.68 percent in June this year, while bank profitability has improved significantly. Mr Das said the prudent management of the external sector has also supported India’s efforts towards macroeconomic stability. He also mentioned that India’s external sector indicators have remained broadly resilient due to a mix of factors like the ongoing diversification of exports, conclusion of free trade agreements and sustained surplus in services trade. Mr Das said that the current account deficit for 2025-26 remained well within manageable levels at 0.6 percent of GDP.
Secretary in the Ministry of Statistics and Programme Implementation, Saurabh Garg, today said India’s economic resilience, supported by strong corporate performance and sustained investment activity, is now being reflected in upward revisions to the country’s growth estimates by various international agencies. Talking to the media on the sidelines of the Kautilya Economic Conclave in New Delhi, Mr. Garg said, the Indian economy had maintained its momentum after recording 7.8 per cent growth in the first quarter of the financial year 2026-27. He noted that strong corporate performance and continued capital investment, including by the private sector, were among the key indicators of the positive economic trend. He added that this momentum was also reflected in recent upward revisions to India’s growth projections by international ratings agencies and research firms, including S&P Global Ratings and Fitch Ratings.
On the impact of tensions in West Asia and risks arising from global oil price shocks, Mr. Garg highlighted that government interventions, along with measures taken by households and the private sector, had helped limit the adverse impact of external shocks on the Indian economy.
