To achieve its vision of becoming a developed nation by 2047, India must generate 8 million jobs over the next 10–12 years and significantly increase the share of manufacturing in its GDP, according to the country’s Chief Economic Advisor, Dr. V. Anantha Nageswaran.
Speaking at the Columbia India Summit 2025, Dr. Nageswaran emphasized that while the goal of a developed India is ambitious, the path ahead may be more challenging than the previous decades. “The global environment over the next 10–20 years is unlikely to be as favorable as it was over the last 30 years,” he noted.
Post-COVID, China has firmly established its dominance in the manufacturing sector. India, too, must now focus on expanding its manufacturing footprint to support economic growth and employment generation. This sector will play a critical role in sustaining long-term GDP growth.
Dr. Nageswaran also highlighted the evolving nature of global development. Unlike today’s scenario, developed countries did not face technological disruptions such as artificial intelligence (AI), automation, and robotics during their industrial growth phases. India, given its vast population and complex socioeconomic landscape, must now address these challenges head-on—challenges that have no easy solutions.
He warned that AI could displace many entry-level jobs, including those in the IT sector. Therefore, training and upskilling in AI and emerging technologies will be crucial to safeguard India’s workforce and future-proof its economy.
A Strong MSME Sector is Key to India’s Development
As India moves forward on its path to becoming a developed economy, strengthening the Micro, Small, and Medium Enterprises (MSME) sector will be essential. Integration into global value chains and a thriving manufacturing ecosystem will be critical to this transformation.
Dr. Nageswaran underscored the need to boost investment rates across the country and empower Indian businesses to compete globally. Given that manufacturing and MSMEs go hand in hand, policies aimed at enhancing the capabilities and competitiveness of MSMEs will be vital for inclusive and sustainable growth.
