CEA: Share gains fairly with workers for sustainable growth

Chief Economic Adviser V Anantha Nageswaran has said that India's economic growth can translate into meaningful transformation only when its gains are shared fairly between workers and corporates. Speaking at an AIMA event, he stressed that fairness is not charity but a condition for a healthy and sustainable market economy. "Growth changes the country only when it is shared honestly between those who do the work and those who put up the money," he said.

Nageswaran argued that the debate over fairness should not be a choice between workers and businesses. He said capital is entitled to a fair return, but workers must have a meaningful share in the prosperity they help create. He warned that holding down wages and delaying payments to suppliers is self-defeating, as it eventually erodes consumer purchasing power. The honest way, he said, is to lower real costs, with governments helping by reducing compliance burdens, power costs, and land prices.

He said India's medium-term growth outlook is 6.5-7% annually, with Q1 growth at 7.8% despite global headwinds. Nageswaran said the country must now focus on turning growth into 'transformation', ensuring better jobs, higher wages, and improved living standards for ordinary Indians. He cited post-June 2024 measures like an employment-focused Budget, trade agreements, fiscal consolidation, and improved credit access.