Fourth Kautilya Economic Conclave (KEC 2025) — A Forum for Inclusive and Resilient Growth

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Context

• The Fourth Kautilya Economic Conclave (KEC 2025), jointly organised by the Institute of Economic Growth (IEG) and the Ministry of Finance, concluded in New Delhi on 5th October 2025.

• The three-day event (3–5 October) brought together senior policymakers, economists, central bankers, industry leaders, and international experts to deliberate on strategies for resilient, inclusive growth amid global uncertainty.

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About the Kautilya Economic Conclave (KEC)

Aspect	Details
Inception	2022
Organisers	Institute of Economic Growth (IEG) & Ministry of Finance
Frequency	Annual
Objective	To provide a platform for evidence-based economic dialogue between policymakers, scholars, and the private sector.
Focus	Combining India’s lived policy experience with global economic perspectives.

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KEC 2025 – Key Highlights

Inauguration

• Inaugurated by Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman on 3rd October 2025.

• Theme: “Pathways to Resilient and Inclusive Growth in an Era of Global Uncertainty.”

Key Dignitaries and Participants

• Dr. P.K. Mishra – Principal Secretary to the PM

• Shri Shaktikanta Das – Governor, Reserve Bank of India

• Shri Vikram Misri – Foreign Secretary

• Dr. S. Jaishankar – Union Minister of External Affairs

• Shri Jyotiraditya Scindia – Union Minister for Communications & DoNER

• Mr. Jean-Claude Trichet – Former President, European Central Bank

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💬 Major Themes and Deliberations

1. India’s Economic Resilience

• FM Smt. Nirmala Sitharaman highlighted:

  • India’s rise as a stabilising economic force is deliberate, not accidental.

  • Fiscal consolidation, quality capital expenditure, and inflation control have strengthened macro fundamentals.

  • Domestic factors (consumption + investment) continue to anchor growth, reducing vulnerability to global shocks.

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2. Macroeconomic Stability

• Discussions focused on:

  • Maintaining low and stable inflation.

  • Ensuring exchange rate discipline.

  • Building buffers for financial stability amid global commodity volatility.

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3. Digital Public Infrastructure & Technology

• Showcased India’s leadership in:

  • Digital finance, AI, and 5G-based systems.

  • Use of Digital Public Infrastructure (DPI) such as UPI, Aadhaar, and ONDC for inclusion.

• Shri Jyotiraditya Scindia delivered an address on “Emerging Technologies”, emphasizing AI, automation, and connectivity for rural growth.

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4. Global Trade and Fragmentation

• Experts discussed:

  • Rising protectionism and supply-chain reconfiguration.

  • The need for new trade partnerships and resilient value chains.

  • Importance of India’s role in G20 and WTO reforms.

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5. Legal and Regulatory Reforms

• Panels stressed:

  • Ease of Doing Business through reduced compliance burden.

  • Need for modern regulatory architecture to attract long-term FDI.

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6. Sustainable Finance and Climate Change

• Policymakers and economists debated:

  • Scaling up green bonds, carbon markets, and blended finance.

  • Financing the energy transition and climate adaptation.

  • Aligning India’s efforts with SDG 13 (Climate Action) and net-zero commitments by 2070.

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7. Demographic Challenges

• Demographers highlighted:

  • Ageing populations in developed economies.

  • Youth bulge in developing regions, especially India.

  • Need for education, skilling, and job creation to leverage the demographic dividend.

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8. Global Lessons and Diplomacy

• Mr. Jean-Claude Trichet spoke on “What Europe Can Learn from the Indian Federation,” drawing lessons from India’s federal fiscal model for European integration.

• Dr. S. Jaishankar emphasised linking economic policy with foreign policy, noting that strategic partnerships and domestic stability must reinforce each other.

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Key Takeaways

1. India’s Strength Lies in Domestic Stability:

   • Resilient growth anchored in strong consumption and investment.

2. Reforms Are Ongoing:

   • Continued structural reforms essential for long-term, high-quality growth.

3. Global Economic Governance:

   • India’s experience in fiscal federalism, digital inclusion, and demographic management offers models for global learning.

4. Green Growth Is the Future:

   • Emphasis on sustainable finance and climate-compatible development.

5. Integration of Economics & Foreign Policy:

   • Economic diplomacy will shape India’s external engagement in a fragmenting world.

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Prelims Pointers

Area	Details
Organisers	Institute of Economic Growth (IEG) & Ministry of Finance
Inception Year	2022
2025 Theme	Pathways to Resilient and Inclusive Growth
Inaugurated By	Smt. Nirmala Sitharaman
Key Speakers	Jean-Claude Trichet, Dr. S. Jaishankar, Jyotiraditya Scindia
Venue	New Delhi
Focus Areas	Macroeconomic stability, digital public infrastructure, sustainable finance, demographic transitions
Global Relevance	Lessons from India for global economic governance

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Mains Relevance

GS Paper III – Indian Economy

Possible Question:

“The Fourth Kautilya Economic Conclave (KEC 2025) highlights India’s emergence as a resilient and inclusive economy in a turbulent global environment. Discuss the factors contributing to this resilience.”

Answer Pointers:

• Fiscal consolidation, macroeconomic discipline.

• Digital transformation (DPI).

• Focus on sustainable and green finance.

• Skill development and demographic management.

• Integration of foreign and economic policy.

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⚙️ Significance of KEC

• Strengthens the policy-research-industry nexus.

• Provides a forum for global thought exchange.

• Reinforces India’s role as a knowledge and governance hub in economic policymaking.

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Challenges Identified

1. Global trade fragmentation and protectionism.

2. Financing green and inclusive growth.

3. Maintaining inflation control amid supply shocks.

4. Labour market adjustments for the digital and AI era.

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Conclusion

The Fourth Kautilya Economic Conclave (2025) reaffirmed India’s economic resilience and reform-driven growth model.
It showcased India’s ability to balance macroeconomic stability, digital innovation, sustainable finance, and global cooperation — establishing the nation as a thought leader in shaping future global economic governance.
The conclave’s message is clear: India’s growth story is robust, inclusive, and globally relevant.