Updated 18:33 IST, January 31st 2025
Economic Survey 2024–25 Optimistic About AI's Potential To Enhance Employment In India
Despite concerns that AI could lead to job losses, particularly in the Information Technology sector, the Survey suggests that India’s workforce can “stay one s
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The Economic Survey 2024–25 presents an optimistic outlook on the impact of Artificial Intelligence (AI) on India’s labor market, emphasizing that proper skilling can enable workers to adapt and thrive in an AI-driven future.
"It will also require appropriate skilling and education for India’s youth to take advantage of technological advances such as Artificial Intelligence, enabling its population to stay one step ahead of technological developments. That would minimise or even eliminate the potential adverse impact on employment and, if possible, turn it into a force for augmenting employment.
Despite concerns that AI could lead to job losses, particularly in the Information Technology sector, the Survey suggests that India’s workforce can “stay one step ahead” by equipping itself with the skills needed to leverage AI, potentially transforming it into a tool for job creation rather than displacement.
"It would require a departure from ‘business as usual’ for collaboration between academic institutions and businesses. Innovation should be facilitated through resource flows, setting up centres of excellence in different technologies and expanding autonomy for academic and research institutions to attract top talent from the rest of the world to India, the survey added.
While dedicating an entire chapter to the intersection of AI and labor, the Survey noted that while the concentration of AI research and development within large corporations may pose risks, India’s large and diverse employment base makes it crucial to manage these changes effectively.
The report acknowledges that AI adoption could centralize automation benefits, but it argues that the right strategies, including widespread reskilling and education, could turn AI into a positive force for job augmentation across sectors.
With India’s workforce poised for transformation, the Economic Survey calls for proactive policies that harness AI’s potential to enhance productivity while ensuring that the benefits of technological progress are broadly distributed across the population.
Published 18:32 IST, January 31st 2025