Viksit Bharat 2047 comes before Net Zero goal in 2070: CEA V Anantha Nageswaran

Besides capital and energy needs, Nageswaran also underscored the need to build trust.

India needs to achieve the middle ground between energy transition and our development goals, Chief Economic Advisor V Anantha Nageswaran said at the CII summit on May 29 in Delhi.

“Viksit Bharat 2047 comes before Net Zero goal of 2047,” the CEA said, highlighting that India’s growth needs to come at a time when challenges on the capital front are mounting.

India is dependent on critical minerals and rare earth elements. Every panel we install, we increase our dependence on the outside world, he further added.

Highlighting other medium-term challenges to growth, the CEA noted that India is straddled with a capital-intensive model of growth, which goes against the core strength of the economy.

While the CEA underscored the efficiency gains from artificial intelligence, he also stressed the need for corporate India to focus on labour-intensive manufacturing.

On the issue of tariffs and the global uncertainty, the CEA highlighted that regardless of the way tariffs are imposed, India is set to benefit in a few sectors.

“We are in an uncertain geopolitical and economic environment, where not just policy but judicial reactions keep changing,” said Chief Economic Advisor V Anantha Nageswaran.

The reaction comes just a day after US courts deemed liberation day tariffs illegal.

“India has silver linings: energy prices are much lower, regardless of how tariffs play out, India will enjoy an advantage and monetary policy has become less unfavourable for growth this year,” the CEA noted.
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Reserve Bank of India has delivered two consecutive rate cuts until April. Experts indicate that another cut might be in the fray in the upcoming June meeting.

“Tax relief also kicks in this year, monsoon is good, we will be able to achieve a growth rate between 6.3-6.8 percent and sustain it for a considerable period,” Nageswaran noted.

MC Poll conducted earlier this week pegs India’s growth at 6.3 percent for the current fiscal.

On the rupee front, the CEA warned the industry that the coming period may be more defined by a stronger currency than a weaker one.

However, he assured that the rupee won't see the kind of depreciation witnessed over the last three decades.

He also urged corporates to focus on corporates to focus on the demographic dividend.

“Combination of ultra-processed foods and screen time is a huge risk for demographic dividend, he said, noting that CSR is not just about spending 2%, but it's integrating practices.

Besides capital and energy needs, Nageswaran also underscored the need to build trust.

“Key question apart from energy security and capital allocation is how to engender trust in society. We don't discuss these kinds of questions often,” the CEA said.