New Delhi: Finance Minister Nirmala Sitharaman on Monday urged economists and academics to take a more data- and technology-driven approach to understanding India’s fast-changing economy and play a bigger role in shaping policy and research that reflects the country’s realities rather than Western models.
The methodology for studying economics needs to evolve, Sitharaman said, identifying technology as the fifth factor of production. “Without technology, land, labor and capital will stay where they are. Economies that embrace them across sectors advance faster, while those that limit their reach fall behind,” she said at an event at the Delhi School of Economics (DSE).
“Today, India is standing together, standing tall and clearly standing on its feet because of India’s economic strength,” she said, adding that the country had moved from the 10th largest economy in 2014 to the 5th largest today and “soon, probably the third”.
Emphasizing the importance of objective data-driven analysis, Sitharaman urged economists to “read the data, read between them and speak for India”.
Bridging the gap
According to her, institutions like DSE should bridge the gap between research and administration and produce knowledge that directly informs policy making.
“A lot of international economic theory is Western-oriented,” she said. “We need India-centric models that can also serve the Global South.”
The minister urged the Delhi School of Economics to train economists and policy makers in advanced data analysis and artificial intelligence to improve economic early warning systems, policy design and governance outcomes. She has also promoted a multidisciplinary approach that combines economics with data science, environmental studies and public policy.
Sitharaman said DSE should anchor field immersion programs that expose students to ground reality by engaging with districts, small businesses, self-help groups and cooperatives. Such initiatives, she said, will help create “economists with empathy who understand both the numbers and the minds of people.”
Calling for deeper India-focused research, Sitharaman urged the institution to focus on topics such as fiscal federalism, goods and services tax reforms, financial inclusion, employment elasticity and climate finance, while assisting state governments in policy formulation.
