India must create at least eight million jobs annually for the next 10–12 years and significantly raise its manufacturing share in Gross Domestic Product to achieve the goal of becoming a developed nation by 2047, according to Chief Economic Advisor Mr. V. Anantha Nageswaran to the Government of India. Speaking at the Columbia India Summit 2025 in New York, Mr. V. Anantha Nageswaran noted that the global environment over the next two decades would be far less favourable than the post-1990 era, making domestic policy efforts all the more critical. He highlighted that India must navigate a unique challenge—balancing labour-centric growth with technology integration in an era of artificial intelligence (AI), robotics, and automation, which threaten entry-level and low-skilled service jobs.
He further stressed the importance of plugging Indian businesses into global value chains and developing a robust micro, small, and medium enterprise (MSME) sector, which was historically essential to manufacturing-led growth in successful economies. He noted that India’s growth has averaged above 8% in the three years following the COVID-19 pandemic. However, sustaining a 6.5% growth rate in the current global scenario would be significant. With global trade contributing less to India’s growth than in previous decades, domestic reforms, deregulation, quality enhancement, Research and Development, and improved logistics must take centre stage. Investment efficiency and resilience to geopolitical tensions affecting capital flows will also be key to maintaining momentum. According to the United Nations Conference on Trade and Development (UNCTAD), India is expected to grow by 6.5% in 2025, supported by strong public spending and easing monetary conditions, despite a challenging global backdrop.
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