In an open letter to Prime Minister Narendra Modi, global brokerage firm Bernstein, represented by Venugopal Garre and Nikhil Arela, has raised significant concerns regarding India's economic trajectory. They emphasize that while India has made recent gains, the country risks under-delivering on its potential without urgent structural reforms. Key issues highlighted include the threat of job losses due to the rise of artificial intelligence (AI) and automation, particularly impacting the IT and business process outsourcing (BPO) sectors that have fueled middle-class growth. The letter warns that India may become a consumer rather than a creator in the AI economy, with most value concentrated in the US and China.

Furthermore, Bernstein expresses skepticism about the manufacturing sector's ability to absorb surplus labor, noting that many workers are shifting to low-end urban services or precarious self-employment. Agriculture, employing a significant portion of the workforce but contributing minimally to GDP, is also identified as a structural constraint needing reform. The authors call for improved irrigation, reduced reliance on subsidies, and investment in logistics to enhance farm efficiency.

On energy, the letter points out India's heavy dependence on crude oil imports and inefficiencies in the power sector, advocating for a transition to electric mobility. Bernstein stresses the importance of developing domestic AI capabilities to avoid becoming reliant on global models. They also caution against the growing scale of cash transfer schemes, which could detract from capital expenditure necessary for infrastructure development. The letter concludes with a call for decisive reforms, warning that the cost of delay could lead to long-term dependence rather than growth.