Economic Survey: India's Demographic Edge Fuels AI Potential
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Synopsis
The Economic Survey 2024-25 emphasizes India's demographic advantages and economic diversity, positioning the nation to leverage AI for equitable transformation amidst global automation concerns.
Key Takeaways
- India's demographic advantage positions it to benefit from AI.
- Significant investments in education and workforce skills are necessary.
- Collaboration among various sectors is key to aligning AI with societal goals.
- AI poses risks of job automation, affecting millions globally.
- India is set to launch an indigenous AI model soon.
New Delhi, Jan 31 (NationPress) Amid rising concerns regarding Chinese AI DeepSeek, India remains committed to protecting user data and privacy. The Economic Survey 2024-25 released on Friday identified the nation’s demographic edge and varied economic environment as key factors that equip it to harness AI effectively. This technology can act as a catalyst for fair economic transformation, enabling India to flourish in an increasingly automated landscape.
To fully capitalize on AI, substantial investments in education and workforce development are essential, alongside supportive institutional frameworks for insurance and governance.
“These systems can assist workers in adapting to evolving job demands while offering critical safety nets. By promoting collaboration among policymakers, the private sector, and academia, India can synchronize AI-driven advancement with societal objectives,” the Survey noted.
Currently, AI research and development is largely dominated by a handful of major corporations, which creates significant entry barriers. This scenario raises concerns that AI’s substitution for human labor may lead to a concentration of automation's benefits.
Technological progress that exacerbates inequality could undermine the advantages brought about by innovation, placing the burden of transition costs on the public sector.
“This situation has prompted calls for a more responsible approach to AI integration, particularly in a nation like India, where the scale of employment makes the potential impacts particularly significant,” the Survey stressed.
The International Labour Organisation projects that approximately 75 million jobs worldwide are at high risk of being automated due to AI.
Concerns about AI's impact are prevalent in India as well, given its service-oriented economy.
An IIM Ahmedabad survey reveals that 68% of white-collar workers anticipate their jobs could be partially or fully automated by AI within the next five years.
With the trend towards increased AI adoption by the private sector and market, NASSCOM forecasts that the Indian AI market will witness a growth rate of 25 to 35% CAGR by 2027.
The Survey indicates that the swift evolution of AI brings both extraordinary opportunities and considerable challenges for global labor markets.
“In light of this, it is crucial for policymakers to observe the shifting technological landscape and its potential repercussions on the job market,” stated the Survey presented in Parliament.
The Indian government is anticipated to introduce its own secure indigenous AI model within six months at an affordable price, aiming to establish the country as a reliable source of ethical AI solutions.
Supported by a robust common computing facility, the IndiaAI initiative is progressing towards creating tailored indigenous AI solutions that cater to the domestic context using Indian languages.
