India is on track to become a USD 5 trillion economy by 2027-28, says the Chief Economic Advisor

Chief Economic Advisor V Anantha Nageswaran has remarked that India is moving on a path to become a USD 5 trillion economy by 2027-28.

PM Modi's Chief Economic Advisor says India is on track to become USD 5 trillion economy

On Thursday, speaking at the CII Annual Business Summit, he confidently shared that even as the country is facing complex geopolitical challenges, and quickly positioning itself to benefit from shifting global trade dynamics, India has full potential.

Speaking on India's economic trajectory, the CEA mentioned that some sectors are expected to benefit from US tariffs, creating new opportunities for Indian businesses.

He further elaborated that the energy transition mantra presents a double whammy for capital-led growth. He added that cheap power remains essential for growth while accounting for backup costs in the energy transition. [Source: The Economic Times]

Anantha Nageswaran even outlined a three-pronged strategy – "Trust, Deregulate, and Reciprocate" – as the essential formula to avoid the middle-income trap.

He lauded for fairer distribution of incomes, balanced deployment of capital and labour, improved workplace culture and mental health initiatives, and increased investment in R&D from the private sector.

"We're seeing a small gap in the private sector's rate of growth in profitability and rate of growth in capital formation," the CEA observed, to draw attention.

However, he warned that AI and robotics pose significant threats since they target service jobs first, potentially undermining India's competitive advantage in the services sector.

He said AI deployment is a "business decision choice," not an inevitability. “Choose where to deploy AI and where human labour is more appropriate for India's job needs.”

The Chief Economic Advisor to the Government of India, Dr. V. Anantha Nageswaran, has previously worked as a writer, author, teacher, consultant and is a former member of the Prime Minister's Economic Advisory Council.

The Chief Economic Advisor advises the PM Modi government on economic matters and is responsible for preparing the Economic Survey of India, which is presented in Parliament before the Union Budget. 

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