India's Chief Economic Advisor V.
Anantha Nageswaran has issued a sharp critique of populist subsidy models, arguing that the pursuit of "free" services in public policy creates long-term economic instability.
Speaking at the CII Tamil Nadu Infrastructure Summit 2026 in Chennai, Nageswaran identified volatility—not scarcity—as the defining enemy of modern economic activity.
The official used the recent experience of Tamil Nadu, which has endured both severe floods and droughts within the same calendar year, to illustrate how environmental and economic shocks compound when policy frameworks lack resilience.
He suggested that short-term political gains from freebies often mask deeper structural vulnerabilities that erode fiscal health and investor confidence over time.
This intervention reinforces a broader shift in India's economic narrative toward fiscal consolidation and productivity-led growth.