India’s Chief Economic Adviser V. Anantha Nageswaran emphasizes that next-generation reforms require collaboration between government and private sector to drive growth amid global uncertainty.
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Next-gen Reforms Must Come From Both Government & Private Sector
At the 52nd National Convention of the All India Management Association (AIMA), India’s Chief Economic Adviser, V. Anantha Nageswaran, delivered a pivotal keynote address, outlining a dual-pathway vision for India’s future economic growth. He asserted that the next wave of reforms must be a collaborative effort, demanding significant changes from both the government and the private sector to propel the economy forward.
The Call for Collaborative Reforms
Dr. Nageswaran framed his address around the essential partnership required for progress. “When we talk of reforms,” he stated, “it is changes that are required both on the part of the government and changes that are required on the part of the private sector as well. Both sets of reforms will be essential to drive growth forward.”
This highlights a shift in perspective, moving beyond viewing reform as a solely government-led initiative to a shared responsibility where corporate governance, investment, and innovation are equally critical.
Navigating Global Uncertainty with “Silver Linings”
The address acknowledged the significant headwinds facing the global economy, describing uncertainty as the prevailing theme in “geopolitics, geoeconomics, trade, and the fiscal situations of many countries.”
However, the CEA pointed to emerging “silver linings,” specifically noting the “hopeful comments made by the American president and a positive response from the honorable prime minister as well.” This likely refers to warming diplomatic and trade relations, which could present new opportunities for India amidst the global flux.
Defending India’s Robust Growth Momentum
A key part of the address was a robust defense of India’s recent GDP growth figures. Dr. Nageswaran clarified a common methodological misconception to assert that the country’s growth is driven by real economic activity, not statistical inflation adjustments.
He explained that unlike the standard practice where most countries calculate activity in nominal terms first and then deflate it, “In India for quarterly GDP estimates… at least 55% of the GDP estimate components are estimated first in real terms.” The deflator is applied afterward to derive the nominal values.
This technical point was made to counter any narrative that the high real GDP growth (7.8%) was merely a result of low inflation (a low deflator). He emphatically stated, “It is not as if a nominal number of 8.8% is calculated and because the deflator is 1% instead of 2 or 3% we got an exaggerated 7.8%. That is not true… There is real economic activity that is driving this momentum.”
The Path Forward
The CEA’s message was clear: India’s impressive economic trajectory is real, but sustaining it requires a new playbook. The next phase of development hinges on a synergistic reform agenda—where the government continues to improve the ease of doing business, infrastructure, and policy frameworks, while the private sector simultaneously steps up its investments, embraces ethical governance, and drives innovation.
This collaborative model is presented as the essential formula for India to navigate global uncertainties and secure its position as a leading engine of global growth.
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