Suman Bery Suggests ‘Productivity Commission’ for India

NITI Aayog Vice-Chairman Suman Bery has suggested that India may consider transforming the government’s policy think tank into a “Productivity Commission” to support long-term economic growth.

Speaking at BS Manthan, a flagship event held in New Delhi, Bery said India’s demographic advantage must be matched with higher productivity to achieve the goal of becoming a developed nation by 2047.

Focus on Productivity

Bery noted that over the next 25 years, India will see significant additions to its working-age population. To make the most of this demographic dividend, labour productivity must rise steadily.

Referring to international examples, he mentioned that Australia has a Productivity Commission. He said the idea of rebranding NITI Aayog had crossed his mind, though he clarified that it was not a formal proposal.

According to Bery, improving productivity is essential if India wants to raise its real per capita income substantially by 2047. He pointed out that labour productivity levels in India remain below those of countries like China.

Women’s Workforce Participation

Bery identified women’s workforce participation as a major opportunity area. He said around 183 million women are currently in the workforce, while approximately 264 million working-age women are not.

He described this gap as a significant potential resource for economic growth. However, he added that increasing participation would require addressing social norms, childcare challenges and other barriers.

He also emphasised that bringing more people into the workforce should not reduce average productivity levels.

Investment and Growth

To sustain faster economic growth, Bery said India may need to increase its investment rate by two to three percentage points of GDP.

He warned against “capital shallowing,” where capital per worker declines as the workforce expands. Key areas requiring investment include domestic infrastructure, energy transition and urbanisation.

Exports, he said, will also play an important role. As imports rise in a growing economy, stronger export performance will be needed to maintain balance.

Rethinking Sectoral Strategy

On job creation, Bery suggested that India may need to reconsider its traditional focus on manufacturing as the primary source of employment for unskilled workers. He said the services sector could offer significant opportunities if supported properly.

He also called for stronger apprenticeship systems and lifelong learning initiatives under the National Education Policy. At the same time, he cautioned against over-reliance on higher education aimed mainly at securing government jobs.

Approach to AI

On artificial intelligence, Bery acknowledged uncertainty about its long-term impact on productivity. He advised policymakers to adopt “no regret” strategies — policies that would benefit the economy under multiple possible future scenarios.

Bery concluded that achieving the vision of “Viksit Bharat” by 2047 would depend on sustained improvements in productivity, higher workforce participation and strategic investment.