Chief Economic Adviser says fair wage sharing is key to sustainable growth

At a keynote for AIMA, Chief Economic Adviser V Anantha Nageswaran stressed that India’s economic expansion will only translate into real transformation if workers receive a meaningful share of the gains. He described fairness as a market condition, not a charitable act, noting that consumers need sufficient income to purchase goods and services. Nageswaran warned that practices like holding down wages or postponing supplier payments are self-defeating, as they erode consumer savings.

He urged the government to lower power tariffs, make land more affordable and simplify compliance to reduce the cost of doing business and spur job creation. The adviser highlighted recent policy steps, including an employment-focused budget, new trade deals, fiscal consolidation and stronger banking balances. He concluded that true transformation depends on equitable distribution of wealth, which boosts productivity and supplier strength alongside corporate returns.