Industry must aim for a strategic reset amid global turmoil: Shaktikanta Das

Amid rising global volatility and supply-chain disruptions, Indian companies must shift their focus from short-term cost efficiency to long-term resilience, Shaktikanta Das, principal secretary to the Prime Minister, said on Monday.

Addressing the Confederation of Indian Industry Annual Business Summit in the capital, the former Reserve Bank of India governor urged businesses to diversify supply chains, strengthen balance sheets, invest in workforce skills and explore new markets, arguing that the changing global economic order now demands a strategic reset.

“Over the years and across the world, firms have optimized efficiency through single-source supply chains spreading beyond their national borders... But it is now evident that no country or single supply chain remains the cheapest, safest or the most predictable on a sustained basis," said Das, who had steered the central bank during the tumultuous pandemic period.

“Resilience maximization” is increasingly replacing “cost minimization” as a priority for corporates and businesses, he said. “Resilience maximisation can indeed be highly cost-effective in the long run. Operational strategies of industry and businesses need to be reoriented from concentration to diversification, and from short-term efficiency to long-term resilience,” he added.

Strategy shift

Indian businesses must embed resilience into their operating models by strengthening risk management, improving decision‑making agility, and proactively anticipating market, technological, and other emerging developments in the world of business, he said. “This would enable firms to absorb shocks, adapt quickly, and emerge stronger, turning uncertainty into opportunity," Das said. "The message that we 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.”

The former central banker underscored the need to strengthen balance sheets as periods of global stress inevitably test the financial strength of companies. “Strong balance sheets provide the flexibility to withstand external shocks, manage cash‑flow pressures, and invest when opportunities arise," he said. "Indian firms should prioritise prudent leverage, robust liquidity buffers, and forward looking capital allocation.”

Building new supply chains and diversifying the country's markets were also critical. "Companies must proactively diversify sourcing, localize critical inputs to the extent feasible, and integrate into multiple global value chains. By doing so, firms can reduce exposure to external shocks while positioning themselves as reliable partners in the evolving global trading system,” Das said.

The importance of manpower reskilling to compete in today's times also cannot be overstated. “As technology, automation and artificial intelligence reshape industries, the future competitiveness of Indian firms will depend heavily on workforce readiness," said Das. "Continuous reskilling and upskilling through vocational training and industry-academia collaboration, particularly in digital, manufacturing, and advanced technical domains must become an organizational priority.”

He further noted the need of strategic investments for future readiness and for capitalizing on new opportunities.

On the policy side, Das said for India’s journey towards its Viksit Bharat@2047 goal, there should be no complacency on the reforms agenda and the government must remain steadfast in pursuing it.

“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.

Amid a turbulent global backdrop, India stands out as an outlier in terms of resilience, said Das. “India has not only absorbed successive disruptions since the covid-19 pandemic, but has repeatedly converted adversity into opportunity and momentum," he said, pointing to the country being the fastest‑growing major economy over the period.