India at economic crossroads, must reimagine growth strategy: CEA

India's economic trajectory is at an inflection point that demands a comprehensive reassessment of its development paradigm, according to Chief Economic Adviser V. Nageswaran. Speaking on the challenges ahead, Nageswaran emphasized that policymakers must proactively shape India's response to technological disruption rather than remain passive observers of global economic shifts.

The CEA's remarks underscore growing concerns about how rapidly advancing artificial intelligence could reshape India's labour-intensive economy. With millions dependent on traditional employment sectors, the transition to an AI-driven economy poses both risks and opportunities that require deliberate policy intervention.

Nageswaran advocated for a development model that leverages artificial intelligence as a tool to augment human capability rather than displace workers. This approach would contrast with patterns seen in developed economies, where automation has often prioritized efficiency over employment retention. The emphasis on worker-centric AI deployment reflects India's unique position as a developing nation with a young, growing workforce.

The CEA's call for strategic rethinking extends beyond technology policy to encompass broader questions about economic structure, skill development, and social safety nets. His intervention suggests that India's policymaking apparatus recognizes the urgency of adapting institutional frameworks to ensure sustainable, inclusive growth in the coming decades.