Anantha Nageswaran said – 8 million jobs needed every year; emphasis on manufacturing as well

New Delhi| V Anantha Nageswaran, Chief Economic Advisor of India, stressed on the preparation of the goal of India becoming a developed country by 2047. He said that India must create 8 million new jobs every year for at least the next 10 to 12 years to achieve the goal of becoming a developed country by 2047. Along with this, the share of manufacturing sector in the country’s GDP will also have to be increased. Let us tell you that Nageswaran was speaking at the ‘Columbia India Summit 2025’ held at Columbia University. This program was organized on the economic policies and future of India.

Difficult for India in the coming years
Nageswaran said at the summit that the coming 10-20 years will not be easy for India. India will no longer get the favorable environment that it got after 1990. Changing world conditions, technological changes and global conflicts can hinder economic development.

He said that challenges like artificial intelligence (AI), robotics and technology are now ahead, which developed countries did not have to face earlier. He said technologies like AI can eliminate entry-level jobs. In such a situation, we will have to bring such a balance in policies, which will create employment and also use technology.

Emphasis on manufacturing and MSMEs
Nageswaran said that if India has to become strong in global manufacturing, then development of small and medium industries (MSMEs) is equally important. He said that no country could become a manufacturing superpower without a strong MSME sector. He also said that either we have to increase the investment rate or extract maximum profit from the existing investment, because global capital flows (Foreign Investment) are also now being affected by conflicts.

He pointed out that exports previously accounted for up to 40% of India’s GDP (2003-08), which has now declined to less than 20%, and could fall further. Therefore, it will no longer be possible to develop by relying only on exports.

A sustainable growth rate of 6.5% is the real way
Nageswaran said that after Covid, India has achieved an average growth rate of 8% in the last three years. However, he admitted that it would be difficult to maintain this rate. He suggested that if India maintained a sustainable growth rate of 6.5% for the next 10-20 years and could sometimes increase that to 7%, this could be a practical path.

Recently the United Nations Trade and Development Organization (UNCTAD) had also said that India’s economic growth rate could be 6.5% in 2025, while the rest of the world is at risk of recession. Regarding this, Nageswaran said that India definitely faces challenges, but if policies are made in the right direction and domestic reforms are focused, then India can move towards a strong and sustainable development.