My distinguished co-panelists, distinguished members of the audience, members of media, ladies and gentlemen, it's a special feeling to be back at the Kautilya Economic Conclave 2026. Since its inception in 2022, I have been participating in almost all the editions of the Kautilya Economic Conclave, either as a speaker and last year as a moderator. This Conclave has emerged as a forum for rigorous intellectual discussion and strategic thinking. It's fitting that this Conclave bears the name of Kautilya, one of the greatest scholars and strategists of ancient India. Through his statecraft, diplomacy, and administrative vision, Kautilya helped lay the foundation of one of the first great pan-India empires, the Mauryan Empire, bringing large parts of the Indian subcontinent under a unified political authority. His ideas on economic management, national security, and governance, articulated in his immortal treatise, the Arthashastra, continue to be relevant even today.
The Arthashastra was a highly scholarly and intellectually rigorous work. One aspect that stands out is Kautilya's critical examination of the thoughts of his earlier authorities. This method of citing, comparing, and evaluating preceding scholars reflects a sophisticated academic approach and evidence-based decision-making. And that was about two millennia ago. At a broader level, Kautilya's timeless principles intersect with the vision of a resurgent India through several core domains. The economic vitality that we see in India today aligns with Kautilya's concept of yoga shema, which prioritizes welfare of the people. Kautilya advocated for an economy where the state creates public infrastructure and actively encourages private enterprise and trade. Does it sound familiar? Yes. I'm referring here to India's big thrust on infrastructure spending and structural reforms over the last decade or so.
Kautilya also emphasized that a state must build its treasury, that is the kosha, without passing on catastrophic debts to its future generations. India's policy emphasis on fiscal consolidation and sustainable debt may be seen in this context. There are indeed many more learnings from Kautilya's thoughts, thoughts which are very relevant for the current global economy, characterized as it is by wars, fragmentations, unilateralism, technological blockades, energy price volatility, and rising inflation. The interplay of these forces is creating uncertainty across the world and would perhaps stifle global growth. What is likely to follow is restrictive monetary policies from central banks. Even more critical is the exceptionally high public debt levels in many advanced economies, averaging close to 110% of their GDP, resulting in rising bond yields, lower fiscal space, and the ability of the countries to counter current and future shocks.
Despite such a global environment, India's real GDP grew by an impressive 7.8% in the first quarter of the current financial year, with strong domestic demand and investment conditions. This quarterly growth has come on top of 7.9% average annual GDP growth recorded during the post-COVID period of five years, that is from 21-22 to 25-26. In fact, as pointed out by my former colleague in the Reserve Bank of India, Dr. Michael Debabrata Patra, who is, I'm happy to note, present here, if the period from July-September 25-26 to April-June 26-27 is taken into account, real GDP growth in India just exceeds 8%. This resonates with my statement to Financial Times London a few months ago that India is within a striking distance of 8% growth.
Now, what are the factors behind the resilience of the Indian economy? Kautilya had emphasized that a ruler's foremost responsibility was to anticipate risks, safeguard the state against internal and external threats, and establish institutions capable of preventing and mitigating calamities. A distinguishing feature of India's development journey in the last 12 years has been the gradual creation of governance foundations before the crisis actually emerged. Many of the reforms undertaken over the past decade were not designed as one-off measures, but as specific buffers to enable the economy to absorb disruptions and recover rapidly. I would put the flexible inflation targeting, introduction of the goods and services tax, the big push for digital payments, and the banking reforms among others in this category. Thus, India's resilience is not accidental. It is the outcome of broad and mutually reinforcing reforms. I would like to highlight three major components of this broad-based approach.
First, strengthening governance and state capacity. Governments derive credibility from the outcomes of their actions. In the Arthashastra, Kautilya argues that a ruler's interests are inseparable from those of the citizens. Over the past decade, improvements in public infrastructure, sanitation, financial inclusion, housing, household electrification, digital services, and welfare delivery have contributed to stronger citizen-state engagement. When citizens experience tangible improvements in their lives, confidence in institutions increases. This confidence becomes a critical resource for governments seeking to undertake difficult reforms. One of the clearest examples of proactive institution building has been India's digital public infrastructure, or what is otherwise known as the India stack. The JAM Trinity, consisting of Jan Dhan bank accounts, Aadhaar, and mobile connectivity, was established well before the COVID-19 pandemic. And when the need arose, it enabled rapid transfer of financial benefits to millions of citizens affected by the COVID.
Digital governance has reduced information asymmetries, streamlined administrative processes, and enhanced accountability. Illustratively, direct benefit transfers have significantly reduced leakages in welfare programs, with estimated savings of around rupees 5.1 lakh crore. A significant dimension of India's recent development journey has been its success in extending the reach of governance, economic opportunity, and public services to certain regions that had long remained on the margins of growth due to left-wing extremism and terrorism. Success in overcoming these problems, which had become sticky, resonates with Kautilya's emphasis on danda, that is the authority of the state to maintain law, order, and discipline.
The second major initiative for strengthening India's resilience has been building macroeconomic stability. If you recall, I pointed out that I would like to highlight three major themes as factors behind the resilience of the Indian economy. The first one I have highlighted is strengthening governance and state capacity. I move on to the second major initiative, which is building macroeconomic stability. Now, this is built upon five distinct pillars. First, inflation targeting and monetary policy credibility. The adoption of flexible inflation targeting framework since 2016 enabled India to navigate through the successive shocks of COVID, the war in Ukraine, and the current conflicts in West Asia. Flexible inflation targeting has in fact created or provided the bedrock for India's high and sustained growth.
The second component is fiscal prudence and quality of expenditure. In fiscal policy, the government has shown sustained commitment to fiscal consolidation and reduction of fiscal deficit without compromising on growth-inducing expenditure. A roadmap for reduction in government debt-GDP ratio to 50% by March 2031 has also been announced. Third component of the macroeconomic stability, which is the main theme I mentioned, is tax reforms and market integration. The introduction of the goods and services tax in 2017 created an integrated national market, removed cascading burden of taxes, expanded the tax base and compliance, and led to greater formalization of the economy. Reforms in income tax have improved competitiveness of firms and reduced tax burdens on middle classes. The results have been telling.
The fourth component is restoration of the health and stability of the financial sector. In fact, restoration of the financial health of the financial sector, I would like to say, has been the defining feature of India's resilience in the recent years. India's financial sector has emerged as a strong pillar of economic growth, supported by reforms such as the Insolvency and Bankruptcy Code, bank recapitalization, and constructive regulatory oversight. Gross non-performing assets have fallen sharply to 1.68% in June 2026, while bank profitability has improved significantly. And finally, prudent management of the external sector has also supported India's efforts towards macroeconomic stability. India's external sector indicators have remained broadly resilient due to a mix of factors like the ongoing diversification of exports, conclusion of free trade agreements, sustained surplus in services trade, and steady inward remittances. Current account deficit for 2025-26 remained well within manageable levels at 0.6% of GDP. Other key external sector vulnerability indicators have also remained well contained.
The third major initiative, I said I'll mention three major initiatives, the third major initiative is building India's resilience through investment in long-term productive capacity. This is built upon again three major building blocks. First, infrastructure and logistics transformation. Through large-scale investment and coordinated transport planning, the Gati Shakti, that is the Gati Shakti, India has expanded physical and digital connectivity, logistics efficiency, and access to national services. Initiatives such as the National Logistics Policy, the Sagarmala, the Jal Jeevan Mission, and Udan exemplify a governance model that is citizen-centric and integrates planning, execution, and monitoring across sectors. The result has been lower economic frictions, greater competitiveness, enhanced market integration, and a stronger foundation for investment-led growth. No wonder India's rank in the World Bank Logistics Performance Index improved from 54 in 2014 to 38 in 2023. India aims to enter the top 25 by 2030.
India has also developed a diverse range of energy sources from fossil fuels, and this is the second component I wanted to mention in the context of what I said, the third major initiative which contributed to enhancement of India's long-term productive capacity. India has developed a diverse range of energy sources from fossil fuels, renewables, biofuels, and nuclear energy. City gas distribution has expanded to 700 cities. Piped cook gas has reached 1.75 crore households, and solar energy capacity has surged to 165 gigawatt. India has emerged as the third largest country in renewable energy capacity. Reliability of energy supply has also improved significantly. Under the Prime Minister Surya Ghar Muft Bijli Yojana, more than 50 lakh households now have rooftop solar installation. Household power bills have been reduced to either zero, or many households have been able to generate additional income through sale of surplus power. India is now better positioned to withstand external energy shocks.
Finally, the third component is manufacturing and industrial development. Flagship schemes such as the Production-Linked Incentive Scheme, the PM Mitra, and Skill India are accelerating capacity building and strengthening India's manufacturing ecosystem. We are now witnessing a manufacturing resurgence in India. Illustratively, India has become the second largest mobile phone manufacturer globally. Semiconductors have also made a big entry into India's manufacturing space. Investments in automation, robotics, and Industry 4.0 technologies are also adding to the robustness of this system.
India now stands at a pivotal moment in its development journey. I repeat, India now stands at a pivotal moment in its development journey. A leap to Viksit Bharat 2047 is very much in the realm of realization. The journey ahead is focused on capitalizing on emerging opportunities. I will propose to highlight five major areas where the pace of activity will get significantly enhanced in the coming years. First, harnessing the AI revolution. Artificial intelligence represents perhaps the single most transformative technological development of this century so far. As a general purpose technology, AI has immense potential to enhance productivity, improve public service delivery, accelerate scientific discovery, strengthen health care outcomes, and transform education.
India's AI strategy rests on two complementary pillars. First, building sovereign AI capabilities through investments in indigenous foundation models, high-performance computing infrastructure, semiconductor development, and a robust innovation ecosystem. The AI mission, the AI course, and the India Semiconductor Mission are laying the foundations for long-term technological competitiveness. Second, India is pursuing the vision of AI for all. Initiatives such as Bhashini seek to bridge linguistic barriers, while India AI Future Skills aim to democratize access to AI capabilities. Attention is also focused on critical issues relating to concentration of technological power, data governance, cybersecurity, algorithmic bias, and AI safety.
The second major component of the way forward is deepening India's financial sector. As India's economic weight expands, the financial architecture must deepen commensurately. While India's financial ecosystem has evolved significantly, the next phase of growth will require strengthening of long-term finance and patient capital. This underscores the need to further deepen corporate bond markets, pension and insurance funds, municipal finance, innovative infrastructure financing, and a market for green and transition finance. The third component is promoting strategic Atmanirbharta or self-reliance. Now, Atmanirbharta does not imply isolation. Rather, it stands for building stronger domestic capabilities while remaining integrated with global markets and concluding more free trade agreements. Efforts are now focused on enhancing our presence in the global supply chains, strategic manufacturing, defense production, and domestic development of critical technologies.
The fourth component is sustainable development and climate leadership. India's rise must also be environmentally sustainable. We have made notable progress in renewable energy development and climate commitments. The next phase of growth will be driven by initiatives such as the National Green Hydrogen Mission, electric mobility, energy-efficient infrastructure, sustainable agriculture, and circular economy practices. The fifth component is investing in human capital. India has made substantial progress in expanding access to health and education. Over the last 12 years, the number of universities increased from fewer than 350, that is from less than 350 to nearly 1,000, and medical colleges from less than 400 to another 850. The next stage of development will enhance emphasis on learning outcomes, health care delivery, preventive care, research, and workforce skills.
Let me now conclude. If we pause for a moment and reflect upon India's story of resilience and its forward-looking strategy, what comes out clearly is a resonance with Kautilya's thoughts and advocacy. As we advance towards the vision of Viksit Bharat, sustaining the reform momentum will be very critical. Kautilya had explained long time ago, and I quote, 'Which is preferable, an immediate small gain or a large gain in the future? A large gain in the future is preferable if it is like a seed yielding fruit in the future.' Unquote. India's strategy is no longer to simply grow rapidly. It is to grow sustainably and resiliently over the long term. Thank you very much. Namaskar.
A very good afternoon to all of you. It is a great pleasure and honor to be here. First of all, I must confess that I'm an economist from Indonesia, so I'm not a student of Kautilya. But when I look at the title of the treatise, Arthashastra, it sounds very familiar to me. Because in Bahasa Indonesia, artha, harta, means wealth. And shastra means literature or science. So I haven't read this treatise, this document. But my guess is it's talking about the treatise of the political economy of wealth. And one thing that I try to look at, one of the important messages from Kautilya, and one of the statements stayed with me. He is said to have written that you cannot tell when a fish in water is drinking. In the same way, you cannot tell when an official is taking money. So for those who have worked for government, will agree that Kautilya understood about governance and the issue of corruption.
So this afternoon, I would like to raise about four issues. Because yesterday NK asked me whether he said commonality between Indonesia and India. So let me share about the four issues that I would like to share. I call it this: two students and one exam. So, firstly on credibility, secondly, what India got right, thirdly, what Indonesia adds, and fourthly, what neither has solved. So, let me start with the credibility first. I was a Minister of Finance back in 2013 when I had to manage the taper tantrum. The same situation happened in India. If you recall, Morgan Stanley put both countries in the so-called fragile five, in August 2013. Interestingly, within about seven months, both had survived the storm. And one interesting story is, if you look at these slides, India and Indonesia implemented very similar policy to weather the storm: raise interest rate, accepted weaker currency, cut the fuel subsidy, and moved to cut the current account deficit. And Indonesia and India were two countries who escaped the fragile five within a short period of time. So, the lesson learned from this experience, the similarities is: markets forgive a problem, but they do not forgive denial. So, we accepted that problem at the time.
Now, let's move to what India got right. I think Indonesia can learn from India on this. So, after the storm, India kept building. So, bad loans fell from 11% in 2018 to 1.8% in 2026. So, firstly on tax, exactly, I think India, correct me if I'm wrong, I'm not pretending that I understand the Indian economic policy, but India removed the multiple taxes and then went into one goods and services tax since 2017. As a result, the government revenue to GDP is about 21%. As for Indonesia, I have to admit that our government revenue to GDP now is 13%. And softened actually. So, Indonesia can learn from India on this mobilization of tax. Secondly, on oil. In 2014, as world oil price fell, India freed the price of diesel, then raised fuel taxes nine times within 15 months. And this tax policy actually became a cushion. So, when, if I'm not mistaken, about a couple of months ago, the Indian government decided to reduce the tax by 10 rupee per liter. So, the message is: build the cushion when the oil is cheap. Whereas for the case of Indonesia, we adjusted the fuel price in 2013-2022, but subsidy is still a big chunk of our budget. So, again, Indonesia can learn from India.
Thirdly, on the rails. State builds and market runs. The state built a digital identity for over a billion people, then stepped back. And money goes straight to the citizen. It reminds me of what Kautilya said actually. In the case of Indonesia, we are working on this. So, hopefully, we can copy what India has been doing related to the single identity. Firstly, on industry. This is very interesting. Because I can find the similarities. India has been quite successful on joining the production network and producing phones. The export expanded by about eight times within five years. In the case of Indonesia, we introduced the industrial policy by introducing the export ban on nickel and bauxite. Interestingly, it worked for nickel, but not so much for bauxite. In the case of India, it worked for a phone, but I'm not sure whether this could be expanded to other products as well. So, the lesson learned is: this kind of industrial policy may work for some specific industry or area, but the question is whether we can expand it.
Now let me move to what Indonesia can experience at. So, after the 1998 Asian financial crisis, we learned something. It is very important to make sure that our fiscal policy, to discipline the fiscal policy. So, in 2003 we passed the finance law. It is stipulated in our law that the maximum budget deficit is 3%. So, as a result, we can see from this chart the debt to GDP in Indonesia is about 40% whereas in India about 80%. And if you look at the interest payment to the revenue, in India it is about 25% whereas for Indonesia it is about one-sixth. So, probably there is a possibility of this pressure for the fiscal space, but luckily India has this strong tax revenue to GDP. But let me be fair for both. India is repairing its finances and Indonesia on ratio interest payment to revenue has been rising because revenue has softened as I said in the past 10 years.
So, now let me move to the most critical issue in my view now. What neither of us has solved. Growth continues, but unfortunately failed to produce good jobs. In the case of Indonesia, in the past 10 years, 80% of the jobs that had been created were basically informal. So the middle class shrunk from 21% to 16.6%. In the case of India, 11% of India's workers were in formal jobs. So this is the big issue that probably two countries and many emerging developing economies should address about the jobless growth, especially nowadays. We understand the problem of youth unemployment, the educated unemployment. With the rising middle class, it's also rising the expectation. If the government failed to deliver the expectation of the middle class, they will think the government has failed. So together with my colleague here, Monica Wihardja, I've done a sort of study to look at the relationship between the shrinking middle class and the social unrest for 29 countries in Asia. There has been an association in which the shrinkage of the middle class induces social unrest in many countries. So this is really a sort of real risk in the future. And to make things worse, in the past the concept of inequality was something abstract, but nowadays social media turned inequality into a daily reality show. So this is the thing that we have to address.
Secondly, the petrol pump. India, the pump prices held through the 2026 oil shock until mid-May, then raised in small steps. So, state oil companies carried the losses. Similar in Indonesia, the budget pays for the state oil company to sell below cost, and the bill grows each time the oil rises. The lesson learned of this is: a subsidy by another name is still a subsidy. So, next, that will be my last slide. I will say that India and Indonesia are mirror images. And what can emerging markets learn? In terms of revenue, India taxes well, but carries relatively high debt. Indonesia carries relatively light debt, but is weaker in revenue. That's what I call mirror. In terms of production network, India joined the production network in the case of phones, but left the talk for the RCEP in 2019. Indonesia is the opposite. We became a member of the RCEP in 2023. We joined the trade agreement, but we are still less integrated. So, the lesson learned from this is a couple of things: guard the treasury, watch the fist, discipline your favorite, and choose your friends wisely. I thank you.
Good afternoon. Thank you very much to the Ministry of Finance and to the Institute of Economic Growth for having invited me to this conference and to participate in this panel. I think that is quite important in discussion. And the first thing that comes to mind and that's important is to understand India in development. What can we learn from other countries and what are the opportunities that India offers to the global economy? So the first thing is that the growth has been impressive and for a long time since 1985. GDP has multiplied by 10 and there are few economies that can have that great performance. And but also has been persistent. So India is a story of perseverance and persistence and I think that that's quite important. It went from 1.7% of the global economy to today close to 3.5% and in 20 more years if it grows four points above the global economy will be more than 7% of the world economy which is also extremely important for all other emerging markets that we want to trade. We want a multipolar world where we can have a lot of partners and I think that India is quite important.
So I want to focus on, in my time frame, four things about India and lessons that. The first is about the discussion of shock therapy and gradualist reforms. The second is the importance of India as a big economy within the global economy. Then some things that I think are also important in the tensions between the state and markets and finally about macroeconomic stability. Let me just start saying that India is a very good example of gradualism. There has been a very long discussion especially when we saw the liberalization of Eastern Europe, whether you should go fast, a shock, or you can do it gradually. The discussion in that case of Eastern Europe was that perhaps the mistake in some places is that you don't have institutions, so you first have to build institutions and then do the reforms and liberalization if you want to have beneficial reforms. The case of India is a case in which institutions already existed. It has a democracy. It has institutions, but went the gradual way. And the gradual way was basically because it had to trade off the cost and benefits of reform over time. So, in order to spread the cost over time, it went very successfully, I think, through gradually. Of course, with the crisis of 1991, there was a need to do some strong reforms, but overall, if one looks at these 40 years, it has been a story of gradualism. So, and I think that is going step by step, and I think that's quite important.
The second thing that I think that today is really relevant is the size and the importance of India in the global economy because we were used to a world in the 1990s that went through deep trade liberalization. Okay, so the world and the benefits of integration, emerging markets, small economies took advantage. China entered the WTO and the world grew. But now the world has changed. Today, there is a dominance of geopolitical reasons. So, today the discussion is which country is the leader in AI, in electric vehicles, in technology. And for small emerging markets, it's quite a challenge because we don't like to take sides. We want to trade with everybody, but sometimes there are pressures. So, having another country like India growing and strong in the global economy is very good for small emerging markets and is very good for creating a multipolar rather than a bipolar world. So, I think that that's a. For the case of India, also it gives autonomy to India in these tensions that the global economy is going through today and that will persist. I think that will for several years. So, for emerging markets it's good to have a multipolar world and for India I think that has autonomy and the capacity to navigate all the tensions that the global economy is going through today.
Let me now talk about this whole discussion and about the role of the state versus market. That is one thing that's important in this discussion. This old debate, markets against state, is not very useful. We don't want to have all discussion about whether this is for the market, this is for the state. We know that the role of the state is important. It has to provide public goods within them, institutions, macroeconomic stability that I will talk about. And the purpose of state intervention is to enlarge the operation of markets and make markets work better. And I think that that's a. So, the role of the state is quite important. In the case of India, we all know the digital infrastructure and it's not just the regular infrastructure, but digital infrastructure and all the opportunities that the government can give to the private sector and to investment in order to have more growth.
However, in this there is a tension and I think that the tension has to do. This is something that is being discussed all around the world and I think that in India is also relevant, in my country is relevant. As we grow richer, as we develop, of course there are much more of different kind of things that the political system has to provide. We were discussing, we have to take care of the environment. We have to take care about some isolated communities. There are many things that are needed for the state to take care in addition to traditional infrastructure and public goods. Now, what's the problem is that as we grow and we start creating red tape, bureaucracy, and we end up with a system in which the state many times, instead of helping private activity, is hampering investment. And I think that that's a challenge that we all have. It's increasing from advanced economies to even very poor economies. It's a problem with red tape, with bureaucracy, and how we protecting all of the other objectives and the needs that the society have, not allowing also investment growth, especially in low-income, middle-income countries where growth and expansion of income is necessary. And we need with all the poverty and lack sectors that we have. So, I think that that's quite relevant for the development and the role of the states within the economy. Okay, so I think that this is a problem and we face also the problem that there will be bureaucratic or red tape competition across countries and we have to be careful to have an efficient state protecting all the things that we need as a society want to take care.
And finally let me talk about something that we were discussing in the previous session and it's the role of macroeconomic stability which is also a cornerstone of success in India and in many emerging markets. I think and I like always to emphasize that the last major crisis in emerging markets was the Asian crisis in 1997. There were some problems with these European countries with the global financial crisis but the last big crisis that started in Asia it hit Russia, Brazil and all Latin America. And the current macroeconomic frameworks policies have made economies very resilient. So the existence of monetary policy credibility with the purpose of price stability has been a key for success of macroeconomic policy. Also prudent fiscal policy, sustainable fiscal policy and a well regulated financial system. And indeed as we saw what's happening in advanced economies during the global financial crisis and most of the financial tensions that they have had is because of the lack of appropriate regulation that in emerging market has been quite successful.
Now, all of this framework what has made us to navigate through the global financial crisis very successful, through all the tensions with Europe, with taper tantrum, then with COVID, very successful policies. We couldn't avoid the pandemic but to reduce the cost, I think that was very important. And this has made the framework quite resilient and they must remain. Macroeconomic stability is not a development strategy but is a necessary condition for progress and I think that this is something that we have to deepen. We have to take care especially today that I think that the most important challenge is fiscal space. Fiscal policy, we need to have fiscal space. We had fiscal space for COVID and there was a large fiscal expansion but that fiscal space has been reduced and on top of that we are having an economy that in the future most likely will have higher interest rate so that the tensions of public finance will be bigger and we have to take care. But overall, I think that what we have learned in emerging markets, what India has done and also the benefit that can produce for the global economy and for all emerging markets is a very good news. Thank you very much.
Are there any questions for the panel? Please raise your hands. I see one there in the corner. Please introduce yourself and keep your question brief.
This is Ashima Goyal from IGIDR. My question is to Secretary Das. He gave us a very impressive list of policies that the government has implemented. So, the question I had was that we are going through a period of very sustained shocks. And is something special required to address these shocks or you feel that what has already been done, what is being planned is sufficient? Thank you.
See, there can never be a moment where you can say that whatever I have done is sufficient. I mean, there is always something more to do. But in the current context, as I have very briefly touched upon, the emphasis has been to build our domestic capacity, domestic competence in areas where we are largely import dependent. So, whether it is energy or it is in fertilizer and so many other areas, the government is now focusing on such areas. Apart from that, the focus of the government is also on areas to take measures and to develop long-term capacity in areas where again we are dependent on imports. Take the example of the rare earth permanent magnets. Now, last year when there were restrictions on imports and it became a major problem because China had imposed certain restrictions for whatever reason they know better. It was a problem for almost the whole of the world. And because almost 80 to 90% of rare earth magnets supply and in that entire ecosystem originates in China. So, Government of India at that time, Central Government came out immediately thereafter with a major initiative to develop domestic capacity in rare earth permanent magnets because that is one critical component on which manufacture of automobiles, automobile manufacturing, electronic hardware manufacturing, and so much other manufacturing depends. Or for example, recently the Government has approved, the cabinet has approved what is called the Samudra Manthan scheme. We have, earlier there was a time when for oil and petroleum exploration, oil and gas exploration, there were certain areas in our coast in the high seas which were described as no-go zones for whatever reason. Now, that distinction has been removed and we are now entering into deep water exploration to again develop domestic sources of energy supplies, gas and oil. So, I can go on giving many examples. I have just mentioned two illustrations. It is basically, number one, to continue with the structural reforms, whatever remaining reforms agenda are there, to continue with that. Number two, to develop domestic capabilities where the country is largely dependent on imports. And thirdly, to continuously focus on stability, as I have explained. Stability consisting of fiscal, monetary, and overall macroeconomic and macrofinancial stability, because that provides the bedrock that supports long-term growth. So, broadly, I would say this is the approach the government is taking.
Thank you. We will take two questions, but keep them very brief. The gentleman in the front, followed by you, please.
