India's Economic Advisor Urges Export-Linked Industrial Support

Chief Economic Advisor V Anantha Nageswaran called for a fundamental shift in India's industrial strategy on October 29, 2026, arguing that government support for domestic manufacturing must be tied to export competitiveness and import price parity. Speaking at the ISID-IDRA Fourth National Conference, Nageswaran stated that India can no longer rely on smooth market access for essential goods due to geopolitical tensions and supply-side shocks, including crude oil vulnerability and semiconductor chip shortages.

Nageswaran advocated for a "quid pro quo" approach to fiscal support, warning that protectionism without productivity investment could weaken industrial resilience. He emphasized that support should be time-bound and prioritize the creation of buffers for essential commodities to reduce reliance on restricted external supplies.

While noting a strong GDP growth of 7.8% in the first quarter of 2026-27, Nageswaran highlighted a stagnation in the manufacturing sector, which has remained at approximately 14.8% of gross value added. He concluded that the 21st century will be defined by a geopolitical contest for real resources, making productivity-led growth essential for national security.