India must create at least 8 million jobs annually for the next decade to realize its ambition of becoming a developed nation by 2047, according to Chief Economic Advisor (CEA) V Anantha Nageswaran. Speaking at an event hosted by Columbia University, Nageswaran outlined the key economic challenges and opportunities that lie ahead for India in its journey towards ‘Viksit Bharat.’
“But India, with its size, has to navigate this huge, complex challenge, and there are no easy answers. If you look at the number of jobs we need to create, it’s about 8 million jobs a year. And Artificial Intelligence may have a big role in taking away entry-level jobs, or low IT-enabled services jobs may come under threat,” he said.
He emphasized that while preparing the workforce for an AI-driven world is essential, the approach must balance technology adoption with employment generation. “We find the right balance between labour-centric policies and technology, because technology at the end of the day is not just a choice to be made by technologists. It has to be made by public policymakers,” Nageswaran added.
To strengthen its growth engine, India must integrate more deeply with global value chains and foster a vibrant MSME sector, he said, noting that manufacturing success is often tied to a robust small business ecosystem.
Nageswaran acknowledged the limitations of relying heavily on exports for future growth. “It has to be the driving force… But from a policy perspective, it will make sense to assume that it will not be so easily possible to extract growth out of exports as we used to do before.”
He reiterated that sustaining growth between 6.5% to 7% through domestic deregulation and strategic reforms will be crucial amid global economic uncertainties.
