Navigating AI and Employment: India's Path to Sustainable Growth
According to a recent survey, the Indian economy must generate an average of nearly 7.85 million jobs annually until 2030 in the IT sector to accommodate the growing workforce. It emphasized that deploying capital-intensive and energy-intensive artificial intelligence (AI) is not ideal for a growing, lower-middle-income economy. The corporate sector is responsible for considering how AI can augment labor rather than displace workers.
The Survey warned that the advent of AI creates uncertainty regarding its impact on workers across all skill levels like low, semi, and high. These challenges could hinder India's ability to maintain high growth rates in the coming years and decades. It stressed that AI's benefits for India would be hollow without actively addressing the future of work.
AI presents an opportunity for India to make significant gains if the country focuses on human capacity, computing power, and data while ensuring gainful employment. The Survey noted the need for nearly 8 million workers in non-farm areas and emphasized the importance of reskilling workers, supported by policy measures for welfare and financial security.
Long-standing challenges remain, such as formalizing a growing workforce, facilitating job creation in sectors that can absorb workers shifting from agriculture, and ensuring social security benefits for regular wage and salaried employment. The Survey suggested supplementing existing schemes like the production-linked incentive (PLI) aiming for 6 million jobs over five years, the MITRA textile scheme targeting 2 million jobs, and MUDRA, while enhancing their implementation.
India's population has shown an affinity for working with technology, as evidenced by the success of digital public infrastructure. Proactive interventions by the government and industry can position India as a key player in the AI age. The Survey noted that the Indian labor market is transforming with the rapid adoption of AI-driven technologies.
AI and automation will necessitate reskilling and upskilling for 16.2 million workers in India while creating 4.7 million new tech jobs. Continuous learning and upskilling are crucial for the workforce and businesses to stay ahead.?
AI should be viewed as an enabler that serves underserved markets rather than a job snatcher. For instance, a vast number of teachers and campuses would be needed to raise the gross enrollment ratio in higher education to 50%. This demand is unlikely to be met without leveraging technology and AI.
The Survey also pointed out the environmental impact of AI, noting that the West has not focused on sustainable growth, leading to significant energy consumption and environmental repercussions. Data centers and AI infrastructure require substantial power, which could increase carbon footprints if not managed sustainably. A balanced approach, including investment in green technologies and renewable energy sources, is necessary to mitigate AI's environmental impact.
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