AI Could Trigger Big Shift in Labour Mkts

The Survey Said That India Faces a Magnified Challenge Due to Population and Relatively Low Per Capita Income as a Services-Led Economy

- Aditi Agrawal

NEW DELHI: India's labour markets are already shifting in anticipation of artificial intelligence (AI) despite the technology's current limitations, the Economic Survey warned on Friday, calling for institutional frameworks to manage the transition and provide safety nets for affected workers.

The survey emphasised that India faces a magnified challenge due to its population size and relatively low per capita income, particularly as a services-led economy. It cautioned policymakers against dismissing concerns about AI's adverse impact as "exaggerated" or "overestimated," especially regarding its effect on entry-level jobs and potential economic disparities.

"If companies do not optimise the introduction of AI over a longer horizon and handle it with sensitivity, the demand for policy intervention and fiscal resources to compensate will be irresistible," the survey noted, calling for greater corporate social responsibility.