India’s Chief Economic Adviser (CEA), Dr V Anantha Nageswaran, laid out a roadmap for India’s economic growth amid global uncertainties while speaking at the Bharat@100 Summit organised by ASSOCHAM on Thursday.
Nageswaran emphasised the need for collaboration between the public and private sectors and academia to propel India toward its aspiration of becoming a developed nation.
Despite the challenges posed by global economic and political shifts, Nageswaran expressed confidence in India’s growth story, underpinned by a decade of structural reforms. Drawing a contrast with East Asia’s growth path in a bipolar world, he said that India faces a more complex geopolitical environment.
Nageswaran said that the private sector has to step up its role in boosting consumption, which he identified as a key driver of economic growth.
“Corporate profitability reached a 15-year high in FY24, but much of this has been directed toward deleveraging balance sheets. While improving financial health is crucial, it must be balanced with wage growth to ensure demand sustains for corporate products,” the CEA stated.
Addressing India’s manufacturing aspirations, Nageswaran suggested shifting the narrative from competing with China to integrating it within supply chains. He stressed the role of MSMEs in achieving a manufacturing share of 25% in GDP.
Drawing lessons from countries like Germany and Switzerland, the CEA advocated for higher quality standards and robust skilling programs.
The CEA also called for a sharper focus on research and development (R&D), lamenting the tendency in Indian production to prioritize maximizing output over optimizing it.
Concluding his address, Nageswaran underscored the need for deregulation, improvements in quality control, and enhanced technical education as critical components of India’s growth strategy. He said that a united effort from the government, private sector, and academia is needed to achieve the vision of Viksit Bharat or a developed India by 2047.
