India’s Economic Ambitions: A Path Forward by 2047
Chief Economic Advisor Outlines Challenges and Opportunities
New York: V Anantha Nageswaran, Chief Economic Advisor to the Government of India, recently emphasized the urgent need for India to generate at least 8 million jobs annually over the next 10 to 12 years. He stated that this job creation is essential for the nation to realize its vision of becoming a developed country by 2047.
Nageswaran made these remarks at the Columbia India Summit 2025, hosted by the Deepak and Neera Raj Centre on Indian Economic Policies at Columbia University. He pointed out that a significant challenge for India is not only its sheer size but also the increasingly complex global economic environment.
“We have a vision to achieve a developed India by 2047. The biggest challenge, apart from India’s size, is that the external environment is not going to be so benign over the next 10-20 years,” he stated, referencing the differences in global conditions compared to the past decades.
The Imperative of Job Creation and Manufacturing Growth
“We must generate at least 8 million jobs per year and raise the manufacturing share of GDP,” Nageswaran urged, highlighting the need for India to bolster its manufacturing sector in light of China’s dominance, especially post-COVID.
Nageswaran pointed out that the journey toward development involves overcoming unique challenges, including those posed by rapid advancements in artificial intelligence, technology, and robotics. These issues are less prevalent for the developed nations today.
“India must navigate a huge and complex challenge. The need for job creation is critical,” he remarked, acknowledging the potential threats AI poses to entry-level jobs and low IT-enabled services.
Balancing Technology and Labour-Centric Policies
He explained that while preparing the workforce for an AI-driven world is essential, it is equally important to find a balance between labor-centric policies and technological advancements. “Technology should not solely be left to technologists; public policymakers need to be involved,” he emphasized.
Nageswaran added that as India strives toward its goal of ‘Viksit Bharat’ by 2047, integrating Indian businesses into global value chains and fostering a robust small and medium enterprise (SME) sector will be vital. “Manufacturing does not thrive in isolation from viable SMEs,” he noted.
Investment and Global Trade Challenges
The Chief Economic Advisor further suggested that India must either raise investment rates or maximize output from existing investments to attract global capital in light of existing geopolitical tensions.
“External trade will continue to play a significant role,” Nageswaran stated, underscoring the connection between external competitiveness and domestic innovation—a crucial aspect for enhancing potential growth.
However, he cautioned against expecting exports to contribute as significantly to GDP growth as in the past. “In the first decade of this century, exports contributed 40% to GDP growth, but this has diminished to around 20% and may decrease further,” he explained.
Maintaining Growth in a Changing Economic Landscape
Nageswaran acknowledged that while India’s export competitiveness is vital, it requires continuous improvement in quality, research and development (R&D), and logistics.
He noted that India’s growth rate has averaged over 8% in the last three years post-COVID. “Sustaining an 8% growth rate will be challenging moving forward; however, maintaining 6.5% over the next decade would be a positive outcome,” he remarked.
According to a report from the UN Trade and Development (UNCTAD), India is projected to grow by 6.5% in 2025, backed by steady public spending and ongoing monetary easing amid global economic uncertainties.
Conclusion: Strategic Priorities for Future Growth
In summary, the journey ahead for India in a challenging global environment is immense. Nageswaran remains optimistic about the potential for growth, primarily driven by strategic policy determination and a focus on deregulation. “Identifying priorities is essential to maintain our growth advantage,” he concluded.
Questions and Answers
Q1: What does V Anantha Nageswaran propose as essential for India’s development by 2047?
A1: He proposes that India must generate 8 million jobs per year and enhance the manufacturing share of GDP to realize its vision of becoming a developed nation by 2047.
Q2: What challenges does Nageswaran mention regarding India’s economic development?
A2: He notes that the external economic environment is becoming increasingly complex, which poses a significant challenge for India, along with the need to balance technology and labor-centric policies.
Q3: How can India improve its manufacturing landscape according to Nageswaran?
A3: Nageswaran believes integrating Indian businesses into global value chains and supporting a viable small and medium enterprise (SME) sector are crucial for the growth of manufacturing.
Q4: What economic growth rate does Nageswaran project for India in the coming decade?
A4: He projects that if India can maintain a growth rate of 6.5% sustainably over the next decade, it would be considered a positive outcome, considering the challenges.
Q5: What role does Nageswaran indicate for technology in India’s economic future?
A5: He emphasizes that technology must be aligned with public policy to ensure job creation and economic growth, highlighting the need to balance automation and employment opportunities.
