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Informist, Friday, Jan. 31, 2025

 

--CEA Nageswaran: World is perhaps evolving more rapidly than we realise

--CONTEXT: Remarks by CEA Nageswaran in preface to Economic Survey 2024-25

--CEA: End of rapid world trade growth clouds India's export growth outlook

--CEA: India must go all out to attract further local, foreign invest needed

--CEA: Need calibrated, careful approach to climate change, energy transition

--CEA: Indigenising technology, raw materials for e-mobility an urgent task

--CEA: Most effective govt policy can be significant roll back of regulation

--CEA Nageswaran: Indian economy is on a steady growth path

--CEA Nageswaran: Period of hyper globalisation has ended

--CONTEXT: CEA Nageswaran's comments at press meet on Economic Survey 2024-25

--CEA Nageswaran: Nations recalibrating towards domestic priorities

--CEA: China dominates global downstream, mainstream EV supply chain

--CEA: Given global context, we must raise the game to level playing field

--CEA Nageswaran: Deregulation at state, local level needed to boost MSMEs

--CEA: Labour norms to protect workers can have unintended consequences

--CEA: General govt spending on social svcs has risen 2.5 times in last 7 yrs

--CEA: Aligning profit growth with wage rises essential to sustain demand

--CEA: AI deployment has opportunities, challenges for labour-rich India

--CEA: Private sector must weigh benefits of AI against social costs

--CEA Nageswaran: Research, development funding mostly from govt entities

--CEA: Private sector R&D in India low, concentrated in sectors

--CEA Nageswaran: Coal will remain mainstay of India's energy security

--CEA Nageswaran: India's energy transition needs a multi-faceted approach

--CEA Nageswaran: Indian economy poised to do better in second half of FY25

--CEA: Pandemic effects now completely erased from trend estimates of growth

--CEA: FY26 growth forecast of 6.3-6.8% in line with other estimates

--CEA: Tough to assess effect of other nations' trade policy on India growth

--CEA: FY26 real GDP view factors in other nations' uncertain trade policy

--CEA: Carbon tax norm may raise carbon emission to EU on mfg shift

--CEA: Don't expect major upside in crude prices

--CEA: India's growth can improve if export growth picks up

 

NEW DELHI - Chief Economic Adviser V. Anantha Nageswaran on Friday called on the private sector to weigh the benefits of adopting artificial intelligence with the costs the society might face, while also pushing the non-government sector to spend more on research and development. The comments by the government's top economist assume significance in the wake of shockwaves sent through the world by Chinese firm DeepSeek's new artificial intelligence model, DeepSeek-R1, which claims to perform as well as those of US companies but works at a fraction of their cost.

 

"Past technology revolutions in general, sometimes we all feel that technology eventually generates more jobs than it displaces. That is true. But the key work is eventually. What happens between now and eventually is critical," Nageswaran told reporters at a briefing on the Economic Survey for 2024-25 (Apr-Mar).

 

"Technological transitions have not been painless in the past...and we need to learn from them. The private sector therefore, needs to weigh the benefits of Artificial Intelligence against the social costs, which may be subterranean in nature and which may surface over a longer period," he added.

 

In his preface to the Economic Survey, which forecast that India's GDP may grow 6.3-6.8% in the next financial year, Nageswaran noted that the world is evolving "more rapidly than we realise", adding that the end of rapid growth in world trade was clouding the outlook for India's exports.

 

With the period of hyper-globalisation ending and countries recalibrating towards domestic priorities, the chief economic adviser warned of the position occupied by China as the sole manufacturing superpower which dominates global downstream and mainstream supply chains in key sectors such as electric vehicles. In this context, India must raise its game to level the playing field, he said. This could be done through deregulation, augmenting internal capacities for growth, and making the energy transition ‘The Indian Way'. According to Nageswaran, while India's energy transition needs a multi-faceted approach, coal will remain the mainstay.

 

Commenting on the private sector's role, Nageswaran called on it to spend more on research and development. "Whatever R&D happens in the private sector in India is not only low but is also sectorally concentrated and that is one area of improvement," he said. At the same time, he also warned that profit growth had to align with increases in wages as that was "essential for sustaining demand and supporting corporate revenue and profitability growth in the medium to long run".  End

 

Reported by Siddharth Upasani

Edited by Vandana Hingorani

 

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