Chief Economic Advisor (CEA) V Anantha Nageswaran expressed optimism about the economy’s improved capital formation, bolstered by various government initiatives, leading to a surge in job opportunities in the current decade compared to the previous one.
Addressing an event, Nageswaran remarked that the downturn in fixed investment and credit expansion moderation, which had hampered economic growth prospects in the past decade, was hopefully now a thing of the past.
He noted that non-food credit growth is currently nearing 20 per cent, indicating a positive momentum, while highlighting the robust condition of both corporate and banking balance sheets, alongside improvements in hiring.
Referring to the 2021-22 data, Nageswaran pointed out that although the farm sector saw a decline of approximately 1.5 million jobs, manufacturing and services each added 3.7 million jobs, and the construction sector generated 1.9 million jobs. He anticipated this trend to persist, supported by strong gross value-added growth in the manufacturing and construction sectors.
Nageswaran emphasised the need for regulatory and tax policy reforms to ease burdens, and reduce complexity, coercion, and predatory practices. Additionally, he highlighted the challenges associated with formally winding down failed businesses.
