PM's principal secretary PK Mishra inaugurates SBI conclave, outlines India's growth path

Principal secretary to Prime Minister PK Mishra on Wednesday outlined the foundations for India’s transition from an emerging economy to a leading global economic power, calling for stronger institutions, deeper financial markets and a shift towards innovation-led growth.Mishra said India now had an opportunity to move from being primarily a large consumer market to becoming a major production and innovation hub. (Representative Image)Addressing the inaugural session of the 13th SBI Banking and Economics Conclave 2026 in Mumbai, Mishra said India’s rise could not be measured by the size of its economy alone. The conclave is being held on the theme “From Emerging to Leading: India’s Expanding Role in the Global Economic Order”.Mishra said a leading economy must have the ability to sustain growth, absorb external shocks without disproportionately affecting households and the financial system, and contribute increasingly to the global economy.Also Read: ‘Govt has taken a host of measures to tackle low GDP’: PK MishraStronger economic foundationsHighlighting changes over the past decade, Mishra pointed to macroeconomic stability, fiscal consolidation, stronger bank balance sheets, the Insolvency and Bankruptcy Code, GST, digital public infrastructure and increased public capital expenditure as key foundations of India's economic architecture.He said public capital expenditure had risen from about ₹2.5 lakh crore in 2015-16 to more than ₹12 lakh crore in 2026-27, strengthening the foundations for private enterprise.Mishra also highlighted the expansion of India's digital public infrastructure, from Jan Dhan-Aadhaar-Mobile and Direct Benefit Transfer to UPI, Account Aggregator and digital lending infrastructure.“The financial system must now increasingly move from accommodating growth to enabling growth,” he said, according to the statement.He said these digital systems could significantly expand access to credit and enable financial institutions to assess businesses using GST returns, bank statements, payment flows and other digital information.Also Read: India must build ‘antifragile’ systems to tackle risks: PK MishraShift from collateral to cash flowCalling for a shift “from collateral to cash flow”, Mishra said technology could help banks evaluate the actual strength of businesses rather than relying predominantly on family-owned assets.Such an approach, he said, could particularly benefit first-generation entrepreneurs, asset-light businesses and small enterprises whose creditworthiness is reflected in their business performance.He also said India's growing investment requirements could not be financed by banks alone. Deeper corporate bond and equity markets, larger institutional investors and infrastructure funds would be needed to channel domestic savings into productive investments.These sources of finance would be crucial for infrastructure, manufacturing, urbanisation, the energy transition and innovation, he said.India needs to move beyond ‘Make in India’Mishra said India now had an opportunity to move from being primarily a large consumer market to becoming a major production and innovation hub.He called for greater domestic value addition, stronger component ecosystems, design capabilities, intellectual property creation and globally competitive Indian brands.“India must move from Make in India to Design in India, Innovate in India and Lead from India,” he said.Mishra also highlighted the potential of GIFT-IFSC, wider settlement of international trade in rupees and Indian digital payment platforms in supporting the country's growing global economic engagement.Also Read: India’s policymaking must account for uncertainty: PM’s principal secretaryExternal risks, resilienceThe Prime Minister's Principal Secretary said the Covid-19 pandemic, the Ukraine conflict and disruptions linked to the West Asia crisis had demonstrated the importance of institutional and financial capacities developed during periods of stability.India's economy, he said, had grown at an average rate of more than 7% in real terms since the pandemic, while growth in the first quarter of the current year stood at 7.8%.At the same time, he flagged risks from fragmented global alliances, rising trade barriers, import dependence, pressure on external accounts and the rapid development of artificial intelligence.Mishra stressed the need to strengthen domestic manufacturing, skilling, foreign direct investment and the overall competitiveness of the Indian economy.‘Credibility comes from consistency’Mishra said India's growing economic weight would also bring greater responsibility in shaping the standards, norms and institutions governing global commerce and finance.He said resilience and credibility were built over time through sound institutions, consistent policies and effective delivery. Referring to India's recent sovereign rating upgrades, he said they were an external reflection of changes built over many years.“Credibility comes from consistency,” he said.Concluding his address, Mishra said India's 2047 vision could not simply mean a larger GDP. The country would need to become more productive, innovative, technologically capable, financially sophisticated and globally competitive.He called on the government, industry, financial institutions, economists and policymakers to work together to finance the next generation of Indian enterprises and convert India's economic scale into productive capability and global leadership.