CEO speaks: AI: Catalyst for India’s Growth to Third-Largest Global Economy
As the world strides into the era of AI, India stands at a pivotal juncture, poised to leverage this technology to reshape its economic landscape and tackle its pressing employment challenges. And what India does shall act as a beacon to all the emerging markets and low-income countries worldwide.
As per the IMF, AI shall radically transform employment across the global economy. In advanced economies, about 60 percent of jobs may be impacted by AI while in emerging markets and low-income countries, it is expected to be 40 percent and 26 percent, respectively. Given that the unique distinction between white- and blue-collar workers is significantly less distinct in the developing world, we may see polarisation in income with workers who can harness AI seeing an increase in their productivity and wages and those who cannot fall behind. This trend needs to be addressed proactively by policymakers across the developing world and most particularly in India.
A report by Ernst & Young predicts that Gen AI is poised to add $1.2-1.5 trillion to India’s GDP in the next seven years. It emphasises that a policy focus on developing Gen AI systems as a “Public Good” in line with the National Strategy for Artificial Intelligence (2018), which emphasises an inclusive “AI for ALL” approach shall be critical in realising AI’s full potential across critical sectors like education, healthcare and agriculture. It is my strong view that to realise this opportunity, we must, as a nation focus on creating and nurturing an open-source ecosystem for basic algorithms and training datasets that can help Indian entities and start-ups develop their own Gen AI products and fast-track indigenous innovation.
The EU and UAE are taking the lead in that direction and we must catch up!
The most transformative potential of AI lies in the education sector. With a burgeoning youth population, India’s education system faces the dual challenge of ensuring quality education and equipping students with the skills demanded by the ever-evolving job market. India’s educational institutes need to leverage AI-based learning to urgently bridge the gap between education and employability. Every three minutes, one student from India enrolls in an AI course on Coursera! The demand exists—we need to revamp our education model to meet this demand! The move by NCERT to introduce AI learning at the school level, in accordance with the NEP 2020 guidelines, is welcome in the right direction. By deeply integrating AI education into our educational ecosystem, we shall not only drastically reduce the 83% youth unemployment figure highlighted by ILO in its India Employment Report 2024 but perhaps we can lead the world in producing an AI-enabled workforce! These globally mobile workers shall continue to project and perpetuate India’s leading position in IT enablement across the world!
Agriculture in India shall be revolutionised by harnessing AI-powered technologies. By leveraging precision farming and predictive analytics based on drones and satellite data, farmers can optimise crop yields, reduce resource wastage, and mitigate risks associated with unpredictable weather patterns. This not only boosts agricultural productivity and our GDP but also creates opportunities for skilled technicians and data analysts to support these initiatives. We shall still need our farmers to toil on their lands and add an entirely new ecosystem that shall add new jobs!
In healthcare, AI holds the promise of revolutionising patient care and medical research. From diagnostic tools powered by machine learning algorithms to personalised treatment plans based on genetic data, AI-driven innovations shall enhance healthcare outcomes while creating demand for a diverse range of professionals, including data scientists, medical researchers, and healthcare administrators. Again, my view is that AI shall complement the existing workforce in the healthcare sector while adding a niche ecosystem and spurring growth!
Beyond these core sectors, the ripple effects of AI adoption extend to various industries, from manufacturing and retail to finance and transportation. Automation driven by AI can streamline operations, improve efficiency, and unlock new avenues for growth, thereby contributing to India’s GDP expansion.
Unfortunately, AI adoption is bound to displace humans in some sectors. From call centres, manufacturing to HR, the loss of routine jobs is inevitable. The IMF estimates that globally 40% of jobs are at risk. I strongly believe that as a nation we must provide a safety net, a cushion for displaced workers to bounce back through a “guaranteed basic income” system. Perhaps, we can support such workers for 1-2 years with a no-strings-attached monthly Government payment. This time can be utilised by them to upskill themselves and apply for jobs. Studies worldwide have repeatedly shown that such cushions help individuals and families avoid significant physical and mental health risks. AI-driven productivity gains and GDP addition can help fund such initiatives!
AI is the growth vector that can offer India a transformative pathway to becoming the world’s third-largest economy, perhaps much sooner than expected. AI adoption shall enable India to address its employment challenges and drive sustainable economic growth. As we embrace the AI revolution, let us ensure that no one is left behind and that every Indian has the opportunity to thrive in the digital economy of tomorrow!
The author is the Group CEO of Techno India Group, a visionary and an educator. Beyond his corporate role, he is also a mentor who guides students towards resilience and self-discovery
