Economic policy and geopolitics are increasingly intertwined, as modern trade tools like tariffs and export controls shift from traditional commercial instruments to strategic leverage. Speaking at the 5th Kautilya Economic Conclave in New Delhi, Principal Secretary to the Prime Minister PK Mishra highlighted how these evolving shifts create fresh uncertainties for global economies.
Key Takeaways from the Address
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Strategic Trade Policy: Tariffs and export controls are now widely deployed for strategic objectives rather than solely for commercial gains, blurring the lines between economic policy and geopolitics.
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The Evolution of Globalisation: Mishra emphasized that globalisation has not ended; instead, the core challenge for policymakers is preserving the advantages of openness while mitigating exposure to unpredictable global shocks.
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The Technological Factor: Rapid advancements in artificial intelligence introduce a new layer of economic unpredictability.
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The Cost of Resilience: While building economic resilience is essential, Mishra noted that it carries an inherent financial cost that policymakers must carefully evaluate.
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India’s Economic Stability: Highlighting India’s performance, Mishra noted that the country has successfully navigated recent global disruptions, including the pandemic, while keeping robust macroeconomic fundamentals and high growth intact.
When asked about upcoming GDP growth forecasts, Mishra remarked humorously that he was “not an astrologer,” urging observers to wait for official announcements.
