Household Savings Growth, Income, Crucial For India's Capital Needs: CEA Nageswaran

At the 2025 annual general meeting of the Confederation of Indian Industry, Chief Economic Advisor Anantha Nageswaran emphasised the importance of steady growth in household savings and income to meet India's capital needs. His address highlighted various challenges and opportunities facing the Indian economy.

He also pointed out the potential threats posed by AI and robotics to service jobs in India. "AI and robotics are threats since they come for service jobs first," Nageswaran remarked.

He further noted that the global model of capital-intensive growth does not align well with India's labour endowment, suggesting that India needs to find a growth model that leverages its abundant labour force.

Discussing the complexities of energy transition, Nageswaran described it as a "double whammy" for capital-led growth. He emphasised the necessity of accounting for backup costs in energy transition and the strategic vulnerability due to India's dependence on other countries for critical minerals.