India is entering a period of economic opportunity driven by favourable demographics and growing capabilities, but sustaining that momentum will require focused investments in people, skilling and productive sectors, BVR Subrahmanyam said on Saturday, February 21.
Speaking at the platinum jubilee celebrations of the All India Management Association (AIMA), Subrahmanyam said India is “in for good times”, and the momentum is currently in the country’s favour. However, he cautioned that the key question is whether India can steer this momentum in the right direction to achieve its development goals.
According to him, India is likely to remain the world’s largest supplier of workforce over the next 25 years, making investments in human capital critical as the country works towards becoming a developed economy.
Early Investment in Children Critical
Subrahmanyam emphasised that the foundation of a strong workforce begins in early childhood. He said investments in nutrition and development in the first two years of life are crucial, warning that inadequate nutrition during this period could affect the health and productivity of future generations.
He pointed out that a child born in 2026 will be 21 years old in 2047 — the year India aims to become a developed nation — highlighting the urgency of investing in the next generation today.
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Focus on Skilling the Workforce
The policy official also called for a major push towards skill development, particularly for young people who do not pursue higher education. Nearly half of India’s youth enter the workforce directly without attending college, he noted.
He argued that skilled workers in many sectors are already earning more than engineering graduates from average institutions, underscoring the need to make vocational training both high-quality and socially respected.
India, he said, must rethink its approach to skilling and create pathways that prepare young people effectively for the job market.
Manufacturing Needs Stronger Growth
While acknowledging that India’s services sector has been performing well, Subrahmanyam said manufacturing must expand more rapidly to support long-term economic growth.
Services will continue to grow, but manufacturing needs an additional boost to drive employment and o