Strategic Shifts in the Private Sector

In the wake of global disruptions, the private sector is urged to rethink its approach to supply chain resilience. Chief Economic Adviser V Anantha Nageswaran emphasizes the importance of strategic planning and exploring alternative sourcing to mitigate risks associated with China's dominance across various sectors.

Focus on Capex and Real Wages

The Economic Survey for 2024-25 highlights the critical role of the private sector in capital expenditure and real wages. Nageswaran discusses the need for a strategic compact between workers, employers, and the government, akin to Japan's post-World War II model, to ensure productivity and real wage growth.

Addressing Ultra-Processed Foods and R&D Investment

Beyond hiring and compensation, the survey calls for attention to workplace safety, the sale of ultra-processed foods, and increased investment in R&D. These measures are crucial for the long-term health of the market and the viability of investments in these areas.

China's Dominance and Domestic Capabilities

With China's dominance in multiple sectors, the survey underscores the need for policymakers and the private sector to build domestic capabilities. Initiatives like the Production Linked Incentive (PLI) scheme and investments in solar power generation and battery technologies are steps in the right direction.

Deregulation and the Pace of Reforms

The survey also touches on the importance of deregulation and accelerating the pace of reforms across sectors. The focus on ease of doing business and business reform action plans at both the Union and state levels is critical for industrial growth and taking reforms to the next level.