CHENNAI: Chief Economic Advisor to the Union government V Anantha Nageswaran on Friday cautioned that the world could be headed towards a prolonged period of geopolitical turbulence over the next two decades, drawing parallels with the volatile years between 1925 and 1945 and said nations and businesses would have to prioritise resilience in an increasingly uncertain global order.
Speaking on the Professor Mahesh Panchagnula Podcast hosted by IIT Madras, Nageswaran said the international landscape was undergoing a structural shift marked by growing strategic rivalries, disruptions in trade networks and heightened economic uncertainty.
"The next 20 years will mimic to some extent the period between 1925 and 1945," he said, noting that the era of pursuing efficiency at all costs was giving way to a greater focus on security and resilience. Supply chains and financial systems are increasingly becoming instruments of geopolitical competition, he observed.
Highlighting India's strategic strengths, the Chief Economic Advisor said the country's capabilities are often underestimated. India, he noted, is among a handful of nations that can ensure food security, manufacture essential medicines and independently launch satellites.
On concerns surrounding technological change and employment, Nageswaran said future opportunities would increasingly favour those who can combine technical knowledge with problem-solving abilities. He also pointed to the continuing relevance of skilled trades such as electrical work, plumbing and mechanical maintenance.
Future opportunities would increasingly favour those who can combine technical knowledge with problem-solving abilitiesV Anantha Nageswaran, Chief Economic Advisor, Union government
Describing India as a unique economic experiment, he said the country was attempting large-scale social and economic transformation within a democratic framework. Quoting a well-known observation on India, he remarked, "Whatever you say about India, the opposite can be equally true."
Anantha Nageswaran also said reforms such as the Goods and Services Tax had accelerated the formalisation of the economy, particularly among micro, small and medium enterprises. Citing internal assessments, he said nearly 65 per cent of the economy is now formalised.
He further called for a broader approach to higher education, arguing that students of engineering and computer science should also develop an understanding of economics, history and political economy to navigate an increasingly complex world.