Rons Bantwal
Mangaluru, May 13: "Prime Minister Narendra Modi’s announcements on May 10 regarding geopolitics and the Indian economy are visionary steps aimed at making the country’s economy stronger, self-reliant, and future-ready. Even amidst global uncertainties, India is moving forward with confidence and strategic planning," stated CA S S Nayak, convener of the Dakshina Kannada District BJP Economic Cell.
Addressing a press conference at the Mangaluru Press Club on Wednesday, Nayak elaborated on India’s current economic standing and future trajectory.
India today: The 5th largest economic power Nayak highlighted that India is rapidly growing as a major economic powerhouse, currently ranking as the fifth largest in the world, with the largest youth population globally. He noted that India's GDP has reached approximately 4.15 trillion dollars and is steadily progressing towards the 5 trillion dollar mark.
Speaking on energy conservation, he said, "India imports more than 85% of its crude oil requirements. Even a slight reduction in fuel consumption can save thousands of crores of rupees in foreign exchange."
Areas of concern and ground realities Addressing the challenges, Nayak pointed out that in FY26, the total import bill stood at 775 billion dollars. Notably, four commodities alone accounted for 240 billion dollars: crude oil ($135 billion), gold ($72 billion), vegetable oils ($19 billion), and fertilizers ($14 billion). These four items constitute 31.1% of India's total imports, with gold alone making up 10%.
"India is one of the world's largest consumers of gold, importing 700 to 900 tonnes annually, which drains 72 billion dollars in foreign exchange. If gold imports drop by 30-40%, we could save 20-25 billion dollars," he explained.
He also noted that India's trade deficit, which was 95 billion dollars in 2024-25, rose to 119 billion dollars in 2025-26. The current account deficit rose to 88 billion dollars, accounting for 2.1% of the GDP. Nayak emphasized the need to bring this deficit below 1% of the GDP.
Steps towards self-reliance Nayak detailed the government's efforts to reduce import dependency. "Currently, 55-60% of the country's edible oil demand is met through imports. However, through the National Edible Oil Mission, domestic oilseed production is being ramped up rapidly," he said.
He also highlighted India's rapid growth in the electric vehicle (EV) sector, attracting massive investments in charging infrastructure and battery manufacturing. Furthermore, India is stepping towards global leadership in solar energy and green hydrogen. In the fertilizer sector, the development of Nano Urea by IFFCO is a significant milestone towards self-reliance.
Rupee depreciation: Opportunities and challenges Analyzing the depreciation of the rupee, Nayak cited factors like the strengthening of the US dollar, rising import costs, and capital outflows. However, he outlined the positive impacts, stating, "When the rupee depreciates, Indian goods and services become cheaper internationally, boosting exports for the IT, pharma, and textile industries. It also benefits NRIs sending remittances and encourages domestic manufacturing (Make in India)."
He acknowledged the challenges, including imported inflation, increased burden on foreign debt repayment, and higher costs for students studying abroad.
Comparative fuel prices Nayak presented a comparative analysis of petrol and diesel prices globally, showing that Indian fuel prices (Petrol: Rs 94-107, Diesel: Rs 90) remain competitive when compared to nations like Singapore, Germany, and even neighboring Sri Lanka and Pakistan.
Positive objectives of PM’s announcements Nayak summarized the positive impacts of the Prime Minister’s vision:
- Economic discipline: Reducing unnecessary imports and promoting local products will strengthen foreign exchange reserves.
- Forex reserves: India's foreign exchange reserves stand at around 700 billion dollars, providing stability amid global economic turbulence and covering 11 months of imports.
- Aatmanirbhar Bharat: The "Local to Global" vision will boost demand for Indian products, empower MSMEs, and create jobs.
- Work culture: Promoting 'Work from Home' and hybrid models will reduce traffic, save fuel, and improve employee well-being.
- Emerging sectors: Savings in foreign exchange can be redirected to boost semiconductor manufacturing, EV production, renewable energy, defense, and AI.
- Digital India: Through UPI, India boasts the world’s largest digital payment system, ensuring transparency and economic strength.
- Global respect: Global companies view India as the "engine of future growth."
- Youth power: With over 65% of the population being youth, India leads in innovation, startups, and technology.
"The Prime Minister's announcement on May 10 is not a sign of distress but a symbol of responsible leadership. India is not just facing challenges; it is transforming them into opportunities," Nayak concluded.
Co-convener Er G Yogish Pai, members Rajesh Rao M (economic expert), CA Sri Krishna Bhat Kokkada, Vasantha Shetty (banking expert), and Dr S M Shivaprakash were present at the press conference.