(MENAFN- Live Mint) New Delhi: Finance minister Nirmala Sitharaman on Monday called on economists and scholars to adopt a more data-driven, technology-oriented approach to understanding India's rapidly changing economy and play a greater role in shaping policy and research that reflect the nation's realities rather than Western models.

The methodology for studying the economy must evolve, said Sitharaman, describing technology as the fifth factor of production.“Without technology, land, labour, and capital will remain where they are. Economies that adopt it across sectors progress faster, while those that limit its reach lag behind,” she said, speaking at an event at the Delhi School of Economics (DSE).

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“India stands together today and stands tall and stands distinctly on its feet because of the economic strength of India,” she said, noting that the country has moved from being the 10th largest economy in 2014 to the 5th today, and“soon, probably to the 3rd.”

Sitharaman underscored the importance of objective, data-led analysis and urged economists to“read data, read between the data, and talk for India.”

Bridging a gap

Institutions like DSE, she said, should bridge the gap between research and governance, producing insights that directly inform policymaking.

“Many international economic theories are Western-centric,” 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 policymakers in advanced data analytics and artificial intelligence to improve early economic warning systems, policy design, and governance outcomes. She also encouraged a multidisciplinary approach that blends economics with data science, environmental studies, and public policy.

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Sitharaman said DSE should anchor field immersion programmes that expose students to ground realities 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 the people”.

Calling for deeper India-centric research, Sitharaman urged the institution to focus on subjects such as fiscal federalism, goods and services tax reforms, financial inclusion, employment elasticity, and climate finance, while also assisting state governments in policy formulation.

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