Civilisational confidence key to India's economic future: Ex-IMF economist

Former IMF economist Sriram Balasubramanian on Tuesday said "civilisational confidence" is a necessary condition for shaping India's economic future and fulfilling the vision of Viksit Bharat.

Speaking at Delhi-based think tank Bharat Ki Soch's discussion series "Shastra se Samvad tak", Balasubramanian said India needed to think from first principles rooted in its own intellectual traditions, particularly Kautilya's Arthashastra.

"Civilisational confidence is not a sufficient condition, but a necessary one for shaping India's economic future and fulfilling the vision of Viksit Bharat," he said.

The session, titled "Kautilyanomics: For Modern Times", was part of Bharat Ki Soch's flagship series aimed at bringing classical Indian thought into contemporary policy discourse.

Balasubramanian said Kautilya's Arthashastra was conceived as a compilation of ideas that invited engagement, contextual interpretation and application, while also building on the work of earlier thinkers.

He said Kautilya's approach to economic thinking was principles-led rather than prescriptive, unlike many contemporary frameworks that seek to define models.

"Unlike many contemporary economic frameworks that seek to define models, Kautilya's approach is anchored in principles and outcomes, leaving room for adaptation based on judgement," he said.

"It is not about what Kautilya said, but what it means to us here and now," he added.

According to him, while contexts evolve, the underlying principles of governance, economic exchange and human behaviour remain consistent and can be adapted to contemporary systems.

Balasubramanian said his interpretation of "dharmic capitalism" rooted in the Arthashastra structured on three pillars -- rule-based and non-intrusive governance, growth via a global outlook, and responsibility towards sustainability and inclusivity.

He said the Indic economic philosophy did not see prosperity and welfare as opposing forces, but emphasised aspiration and wealth creation as central to inclusive and sustainable growth.

Balasubramanian said India's current approach reflected a model rooted in its own traditions while remaining actively engaged with the world through multilateral trade and diplomatic partnerships.

"Self-reliance is best understood not as isolation, but as openness anchored in domestic strength," he said.

On welfare economics, Balasubramanian said Kautilya approached welfare in practical terms, from ensuring basic needs for those at the margins to creating systems that enabled mobility.

He said that beyond targeted interventions aimed at sustenance, there was a need for institutional mechanisms such as formal labour arrangements and enforceable contracts to protect workers.

Balasubramanian also underlined the importance of trade and economic expansion in widening opportunities.

"Welfare cannot be framed as a standalone political or economic intervention, but as part of a multi-dimensional approach that supports stability as well as upward movement," he said.

Balasubramanian further said the most detrimental impact of centuries of foreign rule was the loss of understanding and access to classical Indian texts and wisdom.

He said India needed to think from first principles rooted in its own intellectual traditions, particularly in light of historical shifts that had distanced contemporary economic thinking from these foundations.

Anil Rajput, chairman of the advisory council of Bharat Ki Soch, said economic policy should be guided not only by numbers and growth rates but also by values, ethics, sustainability and social stability.

"As India grows economically and strategically, we must also grow with confidence and pride in our own heritage, knowledge systems and ideas," Rajput said.

Rajput said Kautilya understood that wealth creation, welfare, efficient governance and strong institutions must go hand in hand.

Concluding the session, the think tank's director R K Pachnanda, a former IPS officer, said sustained engagement with India's intellectual traditions could help transform ideas into collective inquiry connecting the past with the future.

He said reinterpreting indigenous knowledge systems could play an important role in shaping India's path towards sustainable and globally relevant growth.




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