‘Private sector must invest, hire, pay fairly’: Chief Economic Adviser Nageswaran

Chief Economic Adviser V Anantha Nageswaran addressed members of the industry body ASSOCHAM, warning that the nation’s young workforce must shift focus from traditional academic routes to trade skills to remain employable in an era dominated by artificial intelligence. He emphasized that the private sector has a critical role to play by investing, hiring and offering fair compensation, alongside boosting research and development, to keep India’s growth trajectory on track.

Nageswaran cited several stark statistics: unemployment among 15‑29‑year‑olds rose to 15.1% in August, three times the overall rate of 5%; a NITI Aayog report from 2021 estimated that 8.7 crore youths were not in education, employment or training; and an Azim Premji University study found that fewer than 7% of male graduates secure a permanent salaried job within a year. He also noted that India’s economy expanded by 7.8% in the April‑June quarter, outpacing expectations, while corporate profits hit a 15‑year high in 2023‑24 but wage growth lagged, raising concerns about income inequality.

The adviser’s remarks come against a backdrop of growing anxiety over AI and automation displacing entry‑level positions, as well as previous criticisms of private‑sector reluctance to invest, which he linked to demand uncertainty. By urging both policy makers and businesses to adapt, Nageswaran signaled that sustained growth will depend on a collaborative effort to upskill the workforce, improve wage structures, and embrace technological change.