To escape middle-income trap, India must bridge the trust gap: Nageswaran

CHIEF Economic Advisor V. Ananth Nageswaran delivered a stark warning to India's industry leaders today, identifying a critical "trust deficit" and unsustainable economic imbalances as key threats to the nation's ambition of becoming a developed economy by 2047.

- ENS ECONOMIC BUREAU @ New Delhi

Speaking at the CII Annual Business Summit, he outlined a three-pronged strategy — "Trust, Deregulate, and Reciprocate" — as the essential formula to avoid the middle-income trap. He sees India's capital-intensive development model, which, he says, is 'alien' to India's core strength as a labour-abundant nation, as a big handicap for its development. He highlighted a concerning trend, where corporate profitability has surged faster than both capita