AI is catalysing non-farm job creation in India

The Economic Survey, placed in Parliament recently, emphasized the complex and uncertain impact of automation on workers and suggested that India invest in research to “steer the AI bandwagon towards shared prosperity.”

- YASHAWARDHANA

The Survey’s lead author, India’s Chief Economic Advisor V. Anantha Nageswaran, highlighted the need for businesses to strike a balance between deploying capital and labour. He pointed out the lack of timely data on the absolute number of jobs created in various sectors, which hampers objective analysis of the labour market.

He stressed that while the present unemployment situation is influenced by multiple factors like the COVID-19 pandemic, it is essential to create conditions for faster growth of productive non-farm jobs. To cater to the rising workforce, the Indian economy needs to generate almost 78.51 lakh jobs annually in the non-farm sector. AI can play a pivotal role in achieving this target by revolutionizing various industries and creating new employment opportunities.

AI’S POTENTIAL TO DRIVE NON-FARM JOB CREATION

AI’s integration into various sectors can significantly contribute to reaching the ambitious goal of generating 78 lakh non-farm jobs annually. The manufacturing sector, traditionally a robust job creator, has faced challenges in recent years. AI can revitalize this sector by enhancing productivity and fostering innovation. AI-driven automation can streamline production processes, reduce waste, and improve quality control, making Indian manufacturing more competitive globally.

This increased efficiency can lead to higher demand for skilled labour to manage and maintain AI systems, thus creating new job opportunities. In the services sector, AI can open up a plethora of employment avenues. For instance, AI can enhance customer service operations through chatbots and virtual assistants, requiring human oversight and continuous improvement. Moreover, AI-driven data analysis and cybersecurity solutions are burgeoning fields that necessitate a skilled workforce, thus generating numerous high-paying jobs.