NEW DELHI: Amid the global challenges, the Indian economy is demonstrating strength on the back of robust domestic demand, sustained industrial and services sector activity, and improving labour market conditions, principal secretary to PM Shaktikanta Das said Tuesday.”High-frequency indicators such as GST collections, electricity generation, rail freight movement, wholesale and retail vehicle sales and similar other trends point to broad-based economic momentum. Rural demand has also strengthened significantly, reflected, among others, in higher tractor and two-wheeler sales,” he said at the launch of India and Emerging Economic Order Forum (IEOF) by the Delhi School of Economics and Research and Information System for Developing Countries.Das cautioned on the impact of the West Asia crisis, arguing that it has triggered sharp increase in energy prices and renewed inflationary pressures, which can stifle global growth and purchasing power of consumers.He underlined the need to cut oil imports, while flagging three reform initiatives taken in recent months that may hold lessons for the Global South, opening up of the space sector, nuclear energy push and a fresh thrust to oil and gas exploration through the Rs 84,000 crore Samudra Manthan.“The ongoing and persistent trade policy uncertainty, geopolitical strains, and weather-related shocks also pose material risks to global growth. These headwinds are significant for almost all countries in the world.”The former RBI governor said economic gravity is shifting eastward but called for addressing some of the challenges faced by Global South, including food security, trade diversification and greater participation in global value chains, energy transition, amid the conflict in West Asia, maintaining macroeconomic stability and creating jobs and expanding economic opportunities.“These challenges can be addressed only through collective action. Global South economies possess a substantial share of the world’s critical minerals, natural resources, agricultural commodities, and youthful human capital. While individual countries often have limited influence in international economic negotiations, their collective voice can constitute a powerful force in shaping global economic outcomes,” Das said.
