Tata Sons Chairman N Chandrasekaran on Monday said India remains in a "stable and strong" economic position, supported by domestic demand, services exports and government policies.
Speaking at the India Forum for Quality Management (IFQM), Chandrasekaran said Prime Minister Narendra Modi's Viksit Bharat 2047 vision has spread across several disciplines.
Achieving the goal would require inclusive and sustainable development supported by world-class infrastructure, institutions and intellectual property.
Chandrasekaran said India's economy has continued to record strong growth despite an uncertain global environment. He pointed to high-frequency indicators, including automobile sales and cement demand, as evidence of economic resilience.
India's external position also remains resilient, he said, with the current account deficit consistently below 1% of gross domestic product (GDP). Exports remain strong, while foreign exchange reserves stand at $785 billion.
Energy security, manufacturing crucial for growth
Chandrasekaran identified energy security, manufacturing and human capital as three critical areas for sustaining India's economic expansion.
He stressed that ensuring energy security would be fundamental to future growth. India also needs to create more manufacturing jobs, particularly in advanced and precision manufacturing, to help move workers from low-productivity agricultural activities into higher-productivity manufacturing and modern services.
Chandrasekaran said assembly-led growth plays an important role in building the micro, small and medium enterprises (MSME) base. However, India must eventually develop end-to-end manufacturing capabilities.
R&D, skills and quality need greater focus
Building comprehensive manufacturing capabilities would require greater investment in research and development (R&D), innovation and skilling, Chandrasekaran said.
Highlighting the importance of quality in improving competitiveness, he cited Toyota and Germany as examples. Toyota used quality to drive innovation and competitiveness, while Germany strengthened its competitive advantage by focusing on quality.
Chandrasekaran said India could benefit from starting later by learning from the experiences and mistakes of successful manufacturing economies and global companies.
He also emphasised the need for increased investment in education and skill development as India builds its human capital and manufacturing capabilities.
