 "Nageswaran warns of AI’s labor displacement while heralding India’s robust economic growth amidst global uncertainties and promoting sustainable job creation.")
V. Anantha Nageswaran, the Chief Economic Advisor to the Indian government, recently projected that the Indian economy will grow between 6.5% and 7% in the current financial year, with an impressive nominal growth rate of 11% accounting for inflation. He emphasized that this growth is noteworthy considering global economic challenges. Nageswaran highlighted the post-COVID recovery in India, driven by effective fiscal and monetary policies, and pointed out the stability of macroeconomic indicators, including a healthy banking system. He also mentioned the importance of advancing the MSME sector for job creation and stressed the need for women’s participation in the workforce. Additionally, he warned about the potential labor displacement caused by artificial intelligence, suggesting a balanced approach between technology and employment.
The Indian economy is set to grow at a rate of 6.5 to 7 percent during the current financial year, according to V. Anantha Nageswaran, the Chief Economic Advisor (CEA) to the Union government. Speaking at an event hosted by the Bengal Chamber of Commerce and Industry, Nageswaran highlighted this growth as a notable achievement in light of the global economic challenges.
He mentioned that alongside the real growth rate, the nominal growth rate, which accounts for inflation, is projected at around 11 percent. Nageswaran emphasized that India’s post-COVID recovery has been bolstered by strong fiscal and monetary policies put in place by the government. He assured attendees that the country’s current account balance is stable and that the domestic banking system remains robust.
Nageswaran noted improvements such as reduced external debt and lower retail inflation, indicating a healthy economic environment. He stressed the importance of generating productive employment, ensuring food security, and easing regulatory constraints for micro, small, and medium enterprises (MSMEs) to maintain this growth momentum. Additionally, he pointed out the necessity for more women to participate in the workforce and the importance of creating secure work environments.
On the topic of artificial intelligence (AI), Nageswaran cautioned that while it presents numerous opportunities, it might also displace labor. He stressed the need to find a balance between technological advancement and social responsibility.
As India moves forward, the focus remains on sustaining economic growth while addressing social issues and improving workforce participation.
Tags: Indian Economy, V. Anantha Nageswaran, Economic Growth, AI Impact, MSMEs, Labor Market, Inflation, Fiscal Policy, Post-COVID Recovery.
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What does CEA predict for India’s economy in FY 2024-25?
The Chief Economic Advisor (CEA) predicts that India’s economy will grow by 6.5% to 7% during the financial year 2024-25. -
What is meant by ‘steady state’ growth?
‘Steady state’ growth means a consistent and stable rate of economic expansion over time, without major fluctuations. -
Why is this growth important for India?
This growth is important because it can lead to more jobs, better living standards, and overall improvement in the quality of life for people in India. -
What factors are contributing to this growth prediction?
Factors like increased investment, strong government policies, and recovery in various sectors after the pandemic are contributing to this growth prediction. - How can the government help achieve this growth target?
The government can help by improving infrastructure, supporting businesses, and implementing good policies that encourage both domestic and foreign investments.
