Recent peace agreement between United States and Iran on Strait of Hormuz drew positive reactions from India,especially from V. Anantha Nageswaran, Chief Economic Advisor to India's government. He called the deal “very welcome” for a nation that leans heavily on imports of oil,natural gas,and fertilizer. In a virtual address on public sector leadership,Nageswaran expressed hope that the agreement would last.
Speaking at the CPCL Sooper Leadership Series by Madras Management Center in Chennai, Nageswaran stressed public sector leadership's role in boosting nuclear energy initiatives. He said current efforts lack the needed urgency. Nuclear power,he argued,is crucial as it's immune to geopolitical choke points and gives stable energy needed for growing tech sectors,including fabs and data centers .
He outlined several key challenges for India . First,modern manufacturing needs critical materials. “No molecules,no manufacturing,” he said,highlighting the need to secure supply chains for vital components like semiconductors and batteries. Second, in research and development,he urged the public sector to invest long-term, countering private sector's focus on quick returns.
Nageswaran also underlined the importance of supporting small and medium enterprises (SMEs), saying India can't rely only on large corporations. He compared this to Germany's Mittelstand,a network of mid-sized engineering firms that thrive on patient capital and a dedication to quality . “India needs its own version of Mittelstand,” he stated,pushing for a similar model to back nation's industrial goals.
He pointed out that public sector's strength lies in its ability to plan and execute strategies over long periods, crucial need for India now. “Public sector leadership isn't relic of an old economic model,” he noted, seeing it as a vital tool of national strategy in today's economic scene.
With interest rates in advanced economies topping 5%,Nageswaran observed that cheap global capital's era is over. He cautioned that every dollar invested in India must now meet higher expectations, marking a shift in global financial climate.
Among attendees were H. Shankar, managing director of Chennai Petroleum Corporation Limited (CPCL),Ashwin Mahalingam, professor at Department of Civil Engineering at IIT-Madras,R . Vijayakumar,executive director of MMA,and B. Ashok, former chairman of Indian Oil Corporation and CPCL. Their presence highlighted the collaborative effort needed to face upcoming challenges…
