NEW DELHI – Artificial intelligence poses a critical stress test for India’s state capacity, demanding urgent workforce upskilling to generate millions of jobs for its youth, Chief Economic Adviser Dr. V. Anantha Nageswaran warned at the India AI Impact Summit.
Speaking on February 16, Nageswaran emphasized that while AI supplements aging advanced economies, it risks displacing Indian workers faster than reskilling efforts if productivity gains fail to create jobs. India must generate at least eight million jobs annually until 2030 to harness its demographic dividend, a window closing as its labor force peaks in 15 years before aging, yet only 4.4 percent of its 1.4 billion population is formally skilled, per the 2023-2024 Economic Survey.
He urged reforms in education, labor-intensive sectors, and calibrated AI rollout to avert inequality spikes amid 8 percent growth goals toward 2047 developed-nation status. IT giants like Infosys and TCS face investor skepticism as AI disrupts models, dragging the Nifty IT Index to its worst week since April. Without action, Nageswaran cautioned, India faces not just missed opportunities but social and economic instability threatening growth and cohesion.