Stable institutions, steady pursuit of reforms will steer India to 2047 goal: Jean-Claude Trichet

Former European Central Bank President Jean-Claude Trichet emphasized that institutional stability and steady pursuit of reforms are crucial for India to achieve its 2047 goal of becoming a developed nation. In an interview with Deepshikha Sikarwar and Kirtika Suneja, Trichet highlighted that Europe and India should avoid succumbing to power politics that are replacing rules-based trading systems and relationships.

Trichet noted that the credibility of the 2047 goal is derived from the reforms implemented over the years, which provides a strong foundation for the steady pursuit of economic reforms until the goal is reached in 2047. He stressed that the stability of democratic institutions in India plays a significant role in giving credibility to the goal, as India's democracy has proven resilient in many difficult circumstances worldwide.

Moreover, Trichet pointed out that India's considerable human resources, both in quality and quantity, contribute to the trust in the goal. However, he cautioned about the risk of a serious market correction due to over-indebtedness, both globally and in India. He advised extreme prudence for all participants in the financial markets.

Regarding the impact of artificial intelligence (AI) on economic growth and jobs, Trichet expressed amazement at the rapid progress made by AI in recent months. While acknowledging the potential negative short- to medium-term effects, he remained optimistic about the long-term benefits of AI. He suggested that AI could have both negative and positive consequences, with the transition period likely to be complicated.

However, he believed that in the medium run, the adaptation problems could be manageable, and the overall impact of AI would be positive.