India's Path to a $5 Trillion Economy by 2028 Amid Global Shifts

Chief Economic Advisor V Anantha Nageswaran voiced optimism on Thursday about India's trajectory towards becoming a USD 5 trillion economy by 2027-28. His remarks came amid complex geopolitical challenges as India aims to capitalize on shifting dynamics in global trade. Nageswaran indicated some sectors might benefit from US tariffs, offering fresh opportunities for Indian enterprises.

The advisor identified five major obstacles that India must tackle on its path to becoming a developed nation by 2047. He emphasized the discord between global capital-intensive growth models and India's labor-rich economy, a mismatch posing difficulties for job creation. According to him, cheap power is crucial for development, alongside managing backup energy costs.

Highlighting AI threats, Nageswaran warned that automation could undermine India's services sector. He also noted strategic vulnerabilities in critical minerals' foreign dependency. The CEA called for a balance between AI use and protecting jobs, underlining that economic growth demands more groundwork in private sector alliances, trust deficit mitigation, and strategic investments.

(With inputs from agencies.)