The Economic Survey 2024-25 paints a forward-looking picture of India's AI-driven future, emphasizing the nation's potential to integrate artificial intelligence into the workforce. With a young, dynamic, and tech-savvy population, India is uniquely positioned to harness AI for workforce augmentation, fostering productivity, innovation, and inclusive economic growth. However, the rapid automation of low-value services poses challenges, requiring a strategic policy response that balances innovation with societal well-being.

AI Adoption

Andrew Haldane, former Chief Economist of the Bank of England, has noted that industrial and technological shifts have historically led to economic distress, job losses, and income inequalities before yielding widespread prosperity. For India, where a large share of the workforce is engaged in service-sector jobs vulnerable to automation, the transition must be carefully managed to mitigate displacement risks while maximizing economic gains.

Building a Social Infrastructure for AI-Driven Growth

The Economic Survey 2024-25 underscores strong social infrastructure's necessity to ensure inclusive and equitable AI-driven economic transitions. It requires the establishment of three key institutional pillars:

• Enabling Institutions – To foster AI literacy, skill development, and workforce adaptation.
• Insuring Institutions – To provide social security and reskilling support for those affected by automation.
• Stewarding Institutions – To guide AI adoption responsibly, ensuring alignment with national economic and employment priorities.

By investing in these institutions, India can transition its workforce towards medium- and high-skill jobs, where AI augments human capabilities rather than replacing them.

A Practical and Scalable AI Adoption Model for India

A robust AI adoption strategy for India must prioritize practicality, reliability, scalability, and efficiency. The Economic Survey highlights three critical factors to address:

• AI Model Reliability – AI systems must deliver consistent and accurate results to earn industry and public trust.
• Infrastructure Readiness – AI adoption depends on data centres, cloud computing, and high-speed connectivity, requiring large-scale investments.
• Efficiency Gains Without Performance Trade-offs – AI must drive productivity while maintaining job quality and equitable economic benefits.

Augmented Intelligence

The Economic Survey envisions a future where "Augmented Intelligence"—the synergistic integration of human and machine capabilities—becomes the foundation of the modern workforce. Instead of replacing jobs, AI will enhance human potential, leading to:

• Higher productivity across industries
• More efficient decision-making
• Enhanced creativity and problem-solving capabilities
• New opportunities in AI-driven sectors

AI Revolution

While AI presents unprecedented opportunities, it raises concerns about economic inequality and job displacement. The Economic Survey urges policymakers to balance innovation with social responsibility, ensuring that:

• AI adoption enhances employability rather than eliminating jobs.
• India’s AI transition is gradual, allowing time for adaptation.
• AI-driven economic gains are distributed equitably across different sectors and income groups.

Conclusion

India stands at a defining moment in its economic trajectory, with AI poised to reshape industries, job roles, and productivity. The Economic Survey 2024-25 presents an optimistic yet pragmatic roadmap, highlighting the need for policy foresight, investment in human capital, and responsible AI governance.

With collaborative efforts from all stakeholders, India can safeguard jobs and create new, higher-value opportunities, ensuring that AI fuels inclusive and sustainable economic progress. The future of work in India is not about man vs. machine—it is about man and machine working together to build a smarter, more prosperous nation.

Source: PIB

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