Chief Economic Adviser highlights need for 8% growth for ‘Viksit Bharat’

India aims to sustain an 8 per cent real gross domestic product (GDP) growth rate over the next 20 years to become a developed nation (Viksit Bharat) by 2047. However, global factors like trade policies and economic uncertainty could impact this goal, stated V Anantha Nageswaran, Chief Economic Adviser to the Government of India, during a press briefing after Economic Survey was tabled in Parliament.

“We are presenting a growth outlook of 6.3-6.8% for FY26. The risk factor is not only due to changes in the global playing field, but also due to the global stock markets, which have lately become volatile, as we witnessed earlier this week,” he added.

He added that deregulation was required by governments at all levels, including state and central levels, to achieve the goal of ‘Viksit Bharat’.

“This recommendation is not only for the Union Government. By simplifying regulations that affect small businesses, we are also lowering the cost of doing business and opening up space for them to hire more people, which will lead to income growth and, therefore, better consumption,” he said.

The Chief Economic Adviser also expressed concern over falling FDIs and stated that FDI, as a share of GDP has come down much faster than the export share of GDP globally. “We are not only competing with other emerging market nations, we’re also competing with industrialised countries, which want to friendshore, onshore their investments. Therefore, one of the biggest magnets for FDI is actually the prospect of profitable returns, which is what India has been providing,”he added.

“We have done most of those things in several areas such as defense, space anddrones. So, whether it is with respect to tariff policies or visa policies, the government has been responding to the emerging situation,” he added.

When asked whether the government was contemplating to tax companies replacing labour with AI, he said, “It is a potential scenario that can develop over time. “Social impacts of technological deployment results in such massive labour displacement” is a point that has been made by the IMF in its discussion paper that came out roughly a year ago. “

“There’s no specific action that is contemplated; nor is hinted at in the Economic Survey,” he stated.