Mon Apr 21 06:50:36 UTC 2025: **India Faces Steep Challenges to Achieve Developed Nation Status by 2047**

NEW YORK, April 21, 2025 – India faces a significant challenge in its ambition to become a developed nation by 2047, according to Chief Economic Advisor V. Anantha Nageswaran. Addressing the Columbia India Summit, Nageswaran highlighted the need to create at least 8 million jobs annually for the next decade and significantly boost the manufacturing sector’s contribution to GDP.

Nageswaran acknowledged the complexities of this goal, citing a less favorable global environment compared to the past three decades and the disruptive potential of artificial intelligence (AI) on the job market. He emphasized the need for a balanced approach between labor-centric policies and technological advancement, stressing the crucial role of public policymakers in navigating this transition.

Further complicating the situation, India must integrate its businesses into global value chains and foster a robust small and medium enterprise (SME) sector, vital for manufacturing growth. While acknowledging the importance of export competitiveness, Nageswaran cautioned against over-reliance on exports for economic growth, suggesting a focus on domestic deregulation to maintain sustainable growth rates.

Despite acknowledging the challenges posed by a potentially recessionary global economy and increased trade tensions, Nageswaran expressed optimism, noting India’s recent growth exceeding 8% and suggesting that maintaining a sustainable growth rate of 6.5% to 7% through domestic focus is achievable. The UNCTAD’s projection of 6.5% growth for India in 2025 further supports this view. The ultimate success will depend on policy determination and prioritization, particularly in the area of deregulation.

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