Without 8M jobs a year, India may miss 2047 goal
What's the story
India needs to create at least eight million jobs annually in the next decade or so, to achieve its goal of becoming a developed nation by 2047.
Chief Economic Advisor (CEA) V Anantha Nageswaran stressed on this during his recent speech at the Columbia India Summit 2025.
He also stressed on the need for a major boost to India's manufacturing sector as part of this job creation plan.
Economic hurdles
External factors pose challenges to India's growth
Nageswaran also mentioned that India's size, along with the external environment, poses challenges in its quest to become a developed nation.
He said, "The biggest challenge, apart from India's size, is that the external environment is not going to be so benign for the next 10-20 years as one might have had in the last 30 years."
This highlights the challenges global economic conditions could pose to India's growth.
Tech hurdles
AI and automation present unique challenges for India
Nageswaran emphasized that India has its own developmental challenges, especially with the emergence of artificial intelligence (AI) and automation.
He said, "Artificial intelligence, technology, and robotics are challenges that some of the developed countries today do not have to face in their developmental journey."
The CEA added, "It is one thing to prepare the population for a world dominated by AI, but it is another thing to ensure that we find the right balance between labor-centric policies and technology."
'Viksit Bharat' vision
Strengthening manufacturing and SME sector for economic growth
As part of the 'Viksit Bharat' 2047 vision, Nageswaran stressed on the need to strengthen manufacturing and integrate Indian businesses into global value chains.
He also emphasized on building a robust small and medium enterprise (SME) sector.
"Countries that became manufacturing powerhouses did not do so without having a viable small and medium enterprise sector," he said.
Investment strategy
India must boost domestic innovation
Nageswaran noted that India needs to either increase investment rates or squeeze more out of existing investments.
He said, "It is not that external trade is not going to matter. It will matter and we need to focus on that because external competitiveness is also a way to boost domestic innovation, domestic potential growth."
Nageswaran also warned that India cannot depend on exports to drive growth like it did in the early 2000s, owing to changing global economic conditions.