Economist Nouriel Roubini, widely known as "Dr Doom" for predicting the 2008 global financial crisis, believes India has the potential to become one of the world's biggest economic success stories. However, he has warned that the country needs to accelerate its growth rate closer to 9% to create enough quality jobs for its expanding young population.
Speaking in an interview with The Economic Times, Roubini praised India's strong domestic market, skilled workforce and improving economic fundamentals. While acknowledging the country's economic progress, he argued that growth of around 7% would not be sufficient to meet the employment needs of millions of young Indians entering the workforce.
His comments come at a time when artificial intelligence is transforming employment patterns and global companies are reconsidering their dependence on China for manufacturing and supply chains.
Global supply chain shifts could boost India manufacturing growth
Roubini believes India could benefit significantly from changes in global trade as multinational companies look for manufacturing alternatives beyond China.
Growing geopolitical tensions and concerns about supply chain disruptions have encouraged businesses to diversify production across different countries. This shift could help India attract foreign investment, expand industrial activity and create new employment opportunities.
India's large domestic market and growing manufacturing capabilities could make it an attractive destination for companies operating in electronics, automobiles, textiles and semiconductor-related industries.
Roubini also highlighted the potential benefits of stronger India-US trade ties. He expects economic pressures, including inflation and affordability concerns, to encourage American policymakers to take a more constructive approach towards international trade.
The India-US trade framework announced earlier in 2026 could improve India's competitiveness if the proposed tariff reductions and market-access arrangements are successfully implemented.
According to Roubini, continued economic reforms, better investment conditions and stronger manufacturing capabilities could help India achieve sustained growth above 8%.
AI disruption makes India's youth employment challenge more urgent
Despite his positive outlook, Roubini cautioned that India's demographic advantage would not automatically guarantee economic success.
With artificial intelligence rapidly changing industries, many traditional jobs could face disruption. Automation and AI-powered technologies are increasingly influencing both manual and knowledge-based occupations, creating uncertainty for workers.
Roubini stressed that India must create employment opportunities across different sectors rather than depending primarily on technology and professional services.
Manufacturing could play a particularly important role by generating jobs in factories, logistics, distribution and supplier networks. Expanding these industries would help absorb a larger section of the workforce while strengthening India's position in global trade.
He believes economic growth closer to 9% would be necessary to provide sufficient productive and well-paying jobs for young Indians.
Roubini gained international recognition after warning in 2006 about weaknesses in the US financial system, including risky mortgage lending and rising household debt. His warnings received widespread attention when the global financial crisis unfolded in 2008.
Unlike his earlier predictions of financial instability, his latest assessment of India is largely optimistic. However, he believes the country's long-term success will depend on its ability to accelerate economic growth, strengthen manufacturing and turn its young population into a productive workforce.
His message highlights a central challenge for India's economic future: achieving faster growth while ensuring that the benefits translate into meaningful employment opportunities.
