Not Every Innovation Should Be Encouraged Without Questioning: CEA V A Nageswaran

The Indian government has hinted it may not be as amenable to cryptocurrencies as the upcoming Trump administration in the US. Chief Economic Advisor (CEA) V Anantha Nageswaran has warned that in a country like India with low per capita income and financial illiteracy, not every innovation needs to be encouraged without any questioning. He added that social cost-benefit analysis of innovations such as crypto and online gaming were absolutely essential. Earlier, Nageswaran had called for greater self-accountability among regulators, urging them to strike a balance between fostering innovation and addressing social costs. Speaking at the 2024 Global Economic Policy Forum, organised by the Ministry of Finance and Confederation of Indian Industry (CII), Nageswaran emphasised the importance of regulatory transparency and responsibility in sectors like cryptocurrency, online gaming, and emerging technologies. “In India, where there is extensive financial illiteracy, regulators need to distinguish between not standing in the way of moonshots and identifying sectors where we need to be more conscious of social costs and benefits, whether it is crypto, bitcoins, or online gaming,” Nageswaran had said.