In letter to PM, Bernstein lists eight areas to boost economic growth

MUMBAI: Bernstein, one of the leading foreign brokerages operating in India, has written an open letter to Prime Minister Narendra Modi mentioning eight areas the government should focus on for the Indian economy to grow.

Touching upon areas from agriculture to AI, Bernstein analysts Venugopal Garre and Nikhil Arela said these eight areas are the “critical areas of focus and possible solutions to recharge the India story and move it away from a low-end labour arbitrage model to a higher productive track.” The Bernstein letter pointed out that although there is genuine entrepreneurial depth among Indian companies, one uncomfortable fault line is employment.

The analysts pointed out that for two decades, India’s services engine was powered by a large, reasonably priced, English-speaking talent pool working in IT services, GCCs and BPOs. “Gen AI now challenges that template,” they said. “Given the emerging situation, innovation is a hard precondition, and not just a desirable rhetoric,” they added. They listed the critical areas of focus and possible solutions to recharge the India story. Those areas are agriculture, energy, AI, manufacturing, railways and transport, cash transfers and subsidies, R&D and innovation, and high taxes and weak public service delivery.
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