Benchmarks
Nifty23,063.10-383.71

FEATURED FUNDS★★★★★

Motilal Oswal Midcap Fund Direct-Growth

5Y Return
21.07 %

Invest Now

Enter search text:

Business News›News›India›India must boost manufacturing, FDI and AI-ready jobs to become developed nation: CEA Nageswaran

Read Today's Paper

India must boost manufacturing, FDI and AI-ready jobs to become developed nation: CEA Nageswaran
Synopsis

India needs to strengthen its manufacturing sector while attracting foreign investment to support economic growth. Chief Economic Adviser V Anantha Nageswaran emphasized the importance of resilience amidst global challenges. He noted a focus on AI's impact on employment, particularly for entry-level jobs. Ensuring the creation of AI-enabled roles alongside traditional jobs will be crucial for social stability.

Reuters

India must strengthen its manufacturing capabilities, attract foreign investment and create jobs suited to an artificial intelligence-driven economy as it seeks to become a developed nation by 2047, Chief Economic Adviser V Anantha Nageswaran said.



Speaking at the 13th SBI Banking & Economics Conclave 2026, Nageswaran said India's development transition was unfolding against a backdrop of geopolitical tensions, the weaponisation of supply chains, climate variability and growing competition from China's manufacturing capabilities.



Also Read: Who gets the fruits of India’s economic growth? CEA Nageswaran has an answer

"We have to reimagine and be prepared to reinvent many of the ways in which we operate, whether you are in the private or the public sector," he said, emphasising the need to build economic resilience while sustaining growth.



Nageswaran said manufacturing would be central to diversifying India's growth and strengthening its economic resilience and security. India, he said, could not afford to choose between manufacturing and services and would need to develop both sectors simultaneously.




He pointed to India's goods trade deficit, which remains at around 3.5-4% of GDP even after excluding oil and gold, as a reason to deepen domestic manufacturing. However, he cautioned that indigenisation should go hand in hand with export competitiveness rather than focus solely on replacing imports with domestic production.

FDI, supply chains

India must strengthen policies at both the state and national levels to attract foreign investment amid intensifying competition from developed economies, Nageswaran said. Key priorities include tax certainty and simplicity, investor protection and access to a skilled workforce.

He also called for building buffers in critical commodities and developing domestic capabilities in smaller but strategically important components that could emerge as choke points in global supply chains.



Also Read: ‘Viksit Bharat depends on Viksit Rajya’: CEA calls for more private capital, higher state capex



The CEA said India would need to build resilience not just through large-scale industrial capacity but also by identifying vulnerabilities in supply chains and preparing for disruptions.

AI and the jobs challenge

On artificial intelligence, Nageswaran said India should look beyond the development of frontier AI systems and focus on how the technology could reshape employment.



Citing recent research covering 41 countries, he said the evidence so far indicated that while junior workers were being affected, overall employment and employment among senior workers had increased.



For India, however, a slowdown in the creation of entry-level jobs could widen inequality and generate longer-term social risks, particularly given the country's demographic dividend, he said.



Nageswaran called for a focus on both AI-enabled and AI-insulated jobs, particularly in labour-intensive manufacturing and services such as hospitality, tourism and elder care. He also stressed the need to make trade skills more attractive and increase private-sector participation in curriculum development.

Growth remains resilient

Nageswaran said India's growth momentum remained resilient, with the economy expanding 7.8%. He attributed the sustained growth of 7% or above to reforms and progress in areas including digital public infrastructure, financial inclusion, capital expenditure and formalisation.



He said India would need to combine these gains with stronger manufacturing capabilities, investment and employment opportunities to support its long-term development ambitions.

Add as a Reliable and Trusted News Source
Add Now!

(You can now subscribe to our WhatsApp channel)

(You can now subscribe to our WhatsApp channel)


Read More News on
India manufacturing growthforeign investment in Indiaartificial intelligence jobs Indiaeconomic resilience IndiaNageswaran economic outlooksupply chain vulnerabilities

Enter search text:

Continue reading with one of these options:
Limited Access
Free
Login to get access to some exclusive stories

& personalised newsletters
Login Now

Unlimited Access
Starting @ Rs120/month
Get access to exclusive stories, expert opinions &

in-depth stock reports
Subscribe Now

ET

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Login using your ET Prime credentials to enjoy all member benefits

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Subscribe to gain powerful insights on business, stock market and industry trends.

Big Price Drop! Flat 40% Off

Student Only Offer

Already a Member? Sign In now

Already a Member? Sign In now
Already a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail Offer
Avail Offer

Claim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004

' + h3 + '

' + h4 + '

' + listing + '

What’s Included with

ETPrime Membership

Stories you might be interested in