Impact of Artificial Intelligence on Indian Economy

Abstract

Artificial Intelligence (AI) is significantly shaping the Indian economy, driving  transformative changes across various sectors. The integration of AI technologies is enhancing  productivity and efficiency, fostering innovation, and creating new economic opportunities. In  industries such as agriculture, healthcare, and finance, AI applications are revolutionizing  processes by optimizing resource management, improving diagnostics, and streamlining  financial transactions. This technological advancement is also fuelling the growth of the Indian  IT sector, positioning the country as a global leader in AI research and development. However,  the impact of AI is not without challenges. The rapid adoption of AI technologies poses risks  of job displacement, particularly in sectors reliant on routine tasks. There is a growing need  for upskilling and reskilling programs to mitigate these effects and ensure a smooth transition  for the workforce. Moreover, disparities in access to AI technology could exacerbate economic  inequalities if not addressed effectively. Overall, AI holds the potential to drive significant  economic growth and development in India, but its benefits must be balanced with strategies  to address its socio-economic challenges. A collaborative approach involving government,  industry, and educational institutions is essential to harness AI's full potential while ensuring  inclusive progress.