2024-08-17 22:55:29
New Delhi: The government is constantly striving to make the country a developed nation. But meanwhile the government fears that black swan events can hinder the country’s progress. At the same time, the government has also started brainstorming on how our economy can remain strong even if the thrust of globalization decreases. To deal with these, the government has sought inputs from experts. Addressing economists and students at the Delhi School of Economics, the Prime Minister’s Principal Secretary PK Mishra said that India should achieve economic, social and environmental stability to face crises in the supply chain. He said that the government is preparing policy reforms and interventions to make India a developed nation. PK Mishra has asked economic researchers to provide developing scenarios for the next two decades, inputs on how to deal with black swan events and the thrust of globalization.
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First know what are Black Swan events
Black swan events are used from the Reserve Bank to politics. This is an event that no one has imagined. When it happens, its effect can be seen on a large scale. It can be an event related to an economic crisis or an epidemic or a war. The fear of such events dominates the market. Any kind of economic crisis, major terrorist attacks, government upheaval, etc. are examples of black swan events. In many places, Covid was also considered a black swan event. In the case of the Indian economy too, many times things related to the situation of black swan event have come to the fore. However, the Reserve Bank has also denied them.
Economic and social stability is essential
In his address, PK Mishra said that India must achieve economic, social and environmental stability to cope with supply chain disruptions. He said that geopolitical tensions, declining globalization and rising economic nationalism, the impact of emerging technologies and climate change…these are some of the challenges that we must try to address in both our policy and actions.
These things were mentioned
Listing some ideas for economic research, Mishra said that the journey towards developed India should be through appropriate policies based on facts, logic and analytical power. In this, he told about three main things
- First, some of these research areas will develop scenarios for the next two decades.
- Second, how to address black swan events.
- Third, addressing the issues and limitations of globalisation in the next two decades.
Major disruptions in the global supply chain
PK Mishra said that researchers will have to find answers to important questions like what may be the form of globalisation in future, how it will be reshaped, relevance of microeconomics concepts to macroeconomics issues and incorporation of artificial intelligence and quantum computing in economic models.
He said that due to geopolitical tensions, governments are sending goods from one country to another via sea. This is increasing the cost of sending goods, which also increases the price of the product. At the same time, attacks on cargo ships in the Red Sea have also raised concerns about dependence on the global supply chain.