Chief Economic Adviser Anantha Nageswaran urges India to adapt its development model amid an ‘inflection point’, emphasising AI integration and skill development to sustain future growth beyond 7.8% expansion.
India’s economy has reached an “inflection point” that, according to Chief Economic Adviser Anantha Nageswaran, demands a reassessment of the policies that supported growth for much of the past three decades. Speaking in New Delhi on Tuesday, Nageswaran said the country is in a period of transition and argued that what worked after independence may not be sufficient for the next 25 years.
He said India needs to adapt its development model for the artificial intelligence era, using AI to strengthen workers rather than push them out of the labour market. Instead of following the more capital-heavy path often seen in richer economies, he argued, India should focus on approaches that suit a large workforce. He also said young people should be willing to acquire trade skills, not rely only on conventional education, as technology changes the kind of jobs available.
Despite geopolitical tensions and elevated crude prices, Nageswaran said he remained confident about the economy’s underlying strength. He pointed to strong bank credit growth, solid tax collections, and healthy balance sheets in the corporate and banking sectors. The economy expanded 7.8% in the April-June quarter, a pace he cited as evidence of resilience.
Nageswaran also pressed the private sector to do more, saying companies must invest, hire and pay fairly, while increasing spending on research and development. In a separate recent presentation reported by Business Standard, he said India could approach $20 trillion by 2046 if current growth trends persist, underscoring his view that the country’s next phase of expansion will depend less on policy alone and more on how businesses and workers respond to technological change.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
