Chandrajit Banerjee: why the Prime Minister's call is more about resilience than austerity

The government has also tightened non-essential imports, such as by raising duty on gold. It is a call for steadiness—small steps taken early so that bigger steps are not needed later.

A sensible rule would be: travel when a physical meeting genuinely adds value; go digital when it does not and shift gradually to digital workflows. Done well, this will save time and money without harming productivity.

It is important to read the message in the right perspective. The challenges India faces are not unique to us. Every country is grappling with them. India has continued to grow while inflation is benign. This call for conservation must not be mistaken for classic ‘austerity’ where growth is put on hold and investment is squeezed.

The recent debate around foreign travel is a good example of why precision matters. There were reports and conversations about levies or restrictions on overseas travel. The PM has made it clear that any such move is out of the question.

What is often missed in the noise is that India’s resilience has been built over years. Over the past decade, India has worked to reduce exposure to energy shocks by diversifying supply sources, strengthening refining capacity, building strategic reserves, expanding its gas grid, accelerating ethanol blending, electrifying the rail network and scaling up renewable energy.

These long-term steps may not always make headlines, but they matter enormously when the world turns uncertain.

So, what should industry do? The good news is that a lot is already happening. And not because anyone is being forced, but because efficiency lifts competitiveness. Greater efficiency protects margins, strengthens reliability and earns trust. In an uncertain world, that is real strength.

Start with fuel. For many businesses, fuel expenses are a meaningful operational risk. That is why the shift to electric vehicles (EVs) in last-mile delivery matters: replacing diesel with electric power reduces emissions, protects against fuel price spikes and improves cost predictability. There are also commonsense steps that do not need big investment: encouraging public transport and car-pooling, adopting hybrid work where possible, improving load efficiency and using rail freight.

The next big opportunity is energy efficiency within factories, offices and commercial establishments. Efficiency is not just about switching off lights; larger gains come when efficiency is built into the process and equipment.

Renewable energy, paired with disciplined energy management, reduces exposure to grid volatility and imported fuel-linked costs. Companies must use energy more efficiently and source more of it cleanly.

Then there are micro, small and medium enterprises (MSMEs), on which large companies rely. Supporting MSMEs through timely payments, local sourcing partnerships, technology sharing and easier access to working capital is a matter of good business sense. When MSMEs have stable cash-flow, delivery delays drop, quality improves and the entire manufacturing ecosystem becomes stronger.

Finally, discipline begins within the enterprise. Review discretionary expenditure. Reduce waste. Strengthen working capital management. This can be an advantage amid volatility. Overall, efficiency and ambition go together. Efficiency creates headroom to invest in infrastructure, innovation, skills and manufacturing. India must invest and grow but with less waste, lower exposure to shocks and stronger discipline.

Resilience takes more than policy. People and enterprises create it by the small choices they make. That is what turns conservation into a strategy and strengthens India’s growth story.

The author is director general, Confederation of Indian Industry.