Trust, deregulation key to achieve long-term economic prosperity: Chief Economic Advisor

New Delhi, May 29 (IANS) Trust, deregulation and reciprocation are the cornerstones of avoiding the middle-income trap and achieving long-term economic prosperity, Chief Economic Advisor (CEA) Dr V. Anantha Nageswaran said on Thursday.

Speaking at the CII ‘Annual Business Summit 2025’ here, Dr Nageswaran emphasised India's top policy priorities for sustainable development and economic growth.

"Key areas include balancing energy affordability and security with energy transition through power sector reforms, addressing AI's impact on employment, ensuring fair income distribution, and focusing on education and skilling for the youth," he stressed.

The CEA further emphasised promoting manufacturing and SMEs, enhancing food security and agricultural productivity, encouraging private sector investment, and integrating economic growth with energy policies and external dynamics are also crucial for a resilient and competitive economy.

"The private sector's role in nation-building is crucial and necessitates a tripartite collaboration between the government, private sector and academia. To achieve developed economy status by 2047, the private sector must be socially responsible, ensuring balanced deployment of capital and labour," he noted.

This involves fair income distribution, workplace safety, investment in research and development, and attention to mental health, among other aspects.

On the macroeconomic front, the CEA emphasised that the IMF projects India to reach a $5 trillion economy by 2027-28.

"Achieving this milestone and avoiding the middle-income trap requires improving living standards. Trust, deregulation, and reciprocation from the private sector are pivotal for fostering sustainable growth and ensuring economic resilience," he added.

Siemens Limited Managing Director and Chief Executive Officer, Sunil Mathur, emphasised the need to improve regulatory frameworks in the country through the adoption of best practices like Regulatory Impact Assessment (RIA) for new regulations.

CII Vice President R. Mukundan highlighted the need for transformational reforms and outlined a multi-pronged agenda for enhancing India’s competitiveness covering issues such as adoption of a consultative approach to policy making as seen with the GST Council, investment in human capital along with physical infrastructure, improving the female labour force participation rate, significant increase in inhouse R&D spending, and moving toward sustainable growth.

--IANS

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