According to Chief Economic Adviser (CEA) V. Anantha Nageswaran, India needs to create nearly 8 million jobs each year over the next 10-15 years to make the most of its demographic dividend, which is time-limited. During a webinar co-hosted by the Indian Council for Research on International Economic Relations (ICRIER) and Prosus at their Centre for Internet and Digital Economy, CEA Nageswaran emphasized that artificial intelligence (AI) should complement human work instead of replacing it, particularly in healthcare and education. He noted that AI can assist frontline workers in delivering high-quality services at scale, particularly in remote and underserved areas.
Nageswaran highlighted that India’s current computing and GPU capacity is limited compared to that of the United States and China, which hampers the nation’s ability to train and develop large-scale AI models domestically. He mentioned that recent reductions in AI subscription prices by global platforms—offering monthly plans at the cost of a single low-fee annual subscription—will likely boost user adoption but will also increase the volume of Indian data captured by foreign AI systems. CEA indicated that as users upload more files and documents instead of just text prompts, the generation of granular and sensitive data from India is expected to rise, making data ownership and sovereignty crucial policy issues moving forward.
The event also included Nobel laureate Professor Daron Acemoglu, who discussed how AI could be harnessed to enhance workforce development, productivity, and service delivery in India. Acemoglu contended that AI tools that support technicians, nurses, and educators will enhance economic participation and productivity, while AI that focuses on replacing labor could exert economic pressures on countries with middle-skilled workforces.
