CEA V Anantha Nageswaran says India must ensure economic growth translates into more jobs, higher wages and broader gains.
India’s growth outlook remains steady, but the country now needs to focus on turning economic expansion into broader economic transformation, Chief Economic Adviser V. Anantha Nageswaran said.
Speaking at the Platinum Jubilee National Management Convention 2026, Nageswaran said major agencies expect India to grow at around 6.5-7 per cent annually over the medium term. He also noted that the economy grew 7.8 per cent in the first quarter despite expectations that the West Asia conflict could weigh on growth.
“Growth is no longer the hard question for us. The hard question is transformation,” Nageswaran said.
He said economic growth measures the expansion of the economy, while transformation is about the nature of that growth and how widely its benefits are distributed.
According to Nageswaran, strong growth and rising capital inflows do not automatically translate into better living standards. India needs growth to reach households through stronger employment and incomes.
He identified job creation, rising wages and fairness as key elements of this transformation. Nageswaran also pointed to the experience of developed economies, where strong corporate profits and investment have at times coexisted with weak hiring and subdued wage growth.
For India, he said, household savings and asset values cannot indefinitely support consumption in the absence of stronger incomes.
More from BusinessNageswaran said the government can help lower the cost of doing business by making energy cheaper, improving access to land and enabling greater use of available space through denser development. Such measures, he said, can reduce business costs without cutting workers’ incomes.
The government has also taken steps to support employment through trade agreements, reduced compliance requirements, fiscal discipline and stronger bank balance sheets, he said.
However, Nageswaran stressed that sustained job creation ultimately depends on the private sector. Businesses need to hire workers, provide real wage growth and make timely payments to small suppliers.
He said this is particularly important for India’s manufacturing ambitions, with small and medium enterprises playing a major role in job creation. Delayed payments of 90 or 120 days from large buyers can constrain suppliers’ ability to invest, pay workers and expand.
For manufacturing to move beyond simple assembly towards design and components, suppliers will need to become stronger, Nageswaran said. Services such as healthcare, tourism and jobs less vulnerable to automation will also remain important
