‘Private sector must invest, hire, pay fairly; youth should be open to trade skills’: Chief Economic Advicer Nageswaran

Chief Economic Advisor V Anantha Nageswaran urged the private sector to invest, hire, and compensate fairly, warning that youth should consider trade skills over conventional education in the age of artificial intelligence (AI). Speaking at ASSOCHAM, Nageswaran stated that the current period is one of significant change, and what has worked for India since independence may not be sufficient for the next 25 years.

He emphasized the need for individuals and households to raise their game, as numerous transformations in geopolitics, supply chain, and technology call for embracing change for the economy to sustain its growth. Nageswaran acknowledged that most government actions to maintain economic momentum are already in place, but added that the private sector must invest, hire, and compensate fairly, and invest in research and development.

These remarks come as concerns grow about job displacement by AI and automation, with unemployment among those aged 15-29 standing at 15.1% in August, more than triple the overall rate of 5%. Data from August also showed that 8.7 crore people aged 15-29 were not in education, employment, or training, according to a report by NITI Aayog.

Nageswaran has previously criticized the private sector's reluctance to invest, which may lead to demand uncertainty. He previously highlighted the disparity between soaring corporate profitability and stagnant wage growth, raising concerns about income inequality.