“It is in the enlightened self-interest of corporates who are swimming in profits to take job creation seriously,” Nageswaran wrote in a note, not mincing words. He said the private sector needs to do more to boost consumption.
Is there a feeling of frustration or disappointment? Nageswaran told CNBC-TV18 that the government is neither frustrated nor disappointed. “It is just to stress the fact that economy and economic activity [are] ongoing phenomena.”He said placing the onus on the corporate sector just makes economic sense, and that his words will hold true even 20 years from now.
Also read: Using AI to cut jobs may result in more tax, warns Eco Survey“…what I’m writing about is an ongoing thing … [it] is valid today, will be valid five years later, will be valid even 20 years later.”
He drew parallels with post-World War II Japan, where the government worked hand-in-hand with the private sector to pull the country from the throes or war and transform it into a burgeoning economy.
“…there was a compact between the government, the private sector and workers that basically [helped Japan] transform itself into a first-world country. And that is the kind of compact that we should [have] in this country,” Nageswaran said.
He said the government has held this view in the past as well and is merely “expanding on that this time.”
“These are natural, ongoing obligations for all sectors of the economy for medium-term growth. There is nothing to be frustrated or disappointed about at this point,” the CEA said.
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