Principal secy-2 to PM nudges industry to reorient biz to be future-resilient
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Das suggested diversification into new markets as his fifth suggestion | (Photo: PTI)
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The government has not become complacent about reforms and several other initiatives are on the anvil in coming months, Shaktikanta Das, principal secretary-2 to the Prime Minister,
asserted on Monday, even as he nudged India Inc towards a strategic reorientation to better absorb shocks amid rising geopolitical uncertainty.
Speaking at the CII Annual Business Summit here, Das said the government was taking bold and forward-looking measures to enhance strategic self-reliance across areas ranging from rare earths and permanent magnets to critical minerals, shipbuilding, cotton productivity and artificial intelligence (AI).
“There is no reform complacency, and I would like to highlight and emphasise this sentence. Policy consistency combined with timely and calibrated reforms are expected to ensure that India not only maintains macroeconomic stability, but also emerges as a globally competitive and inclusive economy,” he said.
“Several other initiatives which are in the pipeline… will follow in the coming months and years to strengthen the long-term resilience of our economy,” Das conveyed. Calling upon Indian businesses to strengthen their balance sheets, he also advised them to reskill manpower, diversify into new growth markets to reduce vulnerability, invest in future-ready capabilities and technology, and increase spending on research and development instead of seeing it as a cost.
“This is the moment for enterprises to think boldly, innovate fearlessly and invest strategically in emerging opportunities. Indian industry must move beyond incremental progress to consultative action, creating global champions, building resilient supply chains, pioneering new technologies and solving national challenges at scale,” Das said.
He said the traditional “corner solution” model was increasingly being disrupted and had become less efficient. A corner solution refers to overreliance on a single source of production, just-in-time supply chains, or dependence on a single supply source. “No country or single supply chain remained cheapest, safest or the most predictable on a sustained basis due to geopolitical conflicts and fragmentation,” he cautioned, that industry’s operational strategies should shift from concentration to diversification and prioritise resilience maximisation over cost minimisation. “Leadership now means daring to take risks, reimagining business models and aligning growth with future opportunities.”
“What and how industry chooses to build, disrupt and lead today will define India’s economic growth, social progress and global standing tomorrow,” he added, while laying out seven suggestions as a road map for India Inc leaders.
As his first suggestion, Das said Indian businesses should strengthen risk management, improve decision-making agility and proactively anticipate market, technological and other emerging developments, enabling firms to absorb shocks, adapt quickly and emerge stronger. “The message that you must give to the international community is that India is ready — ready to do business, ready to innovate and ready to contribute to global prosperity,” he said.
Second, he said companies should strengthen balance sheets, as strong balance sheets provide the flexibility to withstand external shocks, manage cash-flow pressures and invest when opportunities arise. “Indian firms should prioritise prudent leverage, robust liquidity buffers and forward-looking capital allocation while building new supply chains,” he said.
Third, companies should proactively diversify sourcing, localise critical inputs wherever feasible and integrate into multiple global value chains. This, he said, would reduce exposure to external shocks while positioning companies as reliable partners in the evolving global trading system.
Fourth, Das stressed the need to reskill manpower as technology, automation and AI reshape industries. “The future competitiveness of Indian firms will depend heavily on workforce readiness. Continuous reskilling and upskilling through vocational training and industry-academia collaboration, particularly in digital manufacturing and advanced technical domains, must become an organisational priority,” he said. Investing in human capital would not only improve productivity but also foster a stronger and more inclusive corporate culture while promoting long-term efficiency, he added.
As his fifth suggestion, Das recommended diversification into new markets. Noting that overdependence on a narrow set of markets or geographies increases vulnerability during global slowdowns, especially for exporters, he said Indian businesses should actively explore new export markets and leverage India’s growing economic and diplomatic influence. “Market diversification would spread risks, stabilise revenue streams and allow firms to tap into new growth corridors and demand patterns,” he said.
Sixth, Das urged industry to invest strategically in technology, innovation, sustainability and capacity-building to prepare for the future and capitalise on emerging opportunities. “This would enable firms to capitalise on structural shifts, rather than merely reacting to them,” he said, adding that businesses investing with a long-term perspective today would be best placed to lead tomorrow.
As his seventh suggestion, Das exhorted industry to increase expenditure on research and development and not treat it as a cost. “Expenditure on R&D by corporates should not be seen as a cost centre. It must be seen as a strategic investment,” he said.
7 mantras for India Inc
Key suggestions to the industry from Shaktikanta Das, principal secretary-2 to Prime Minister
- Build organisational resilience
- Strengthen balance sheets
- Build new supply chains
- Re-skill available manpower
- Diversify into new markets
- Invest strategically for
- future readiness
- Increase expenditure on R&D
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