New Delhi: Dr V. Anantha Nageswaran, Chief Economic Advisor (CEA) to the government, said that India must generate nearly eight million jobs annually over the next 10-15 years to capitalise on its demographic advantage. He emphasised that “AI should enhance, not replace, human work,” particularly in healthcare and education, where technology can empower professionals to deliver quality services at scale in underserved regions.
The Indian Council for Research on International Economic Relations (ICRIER) and Prosus jointly hosted the first webinar under their renewed partnership at the ICRIER-Prosus Centre for Internet and Digital Economy, featuring Prof Daron Acemoglu, 2024 Nobel Laureate and Institute Professor at MIT and Dr Nageswaran.
The discussion was broadly focused on how Artificial Intelligence (AI) can be channelled to enhance workforce development, productivity and public service delivery in India.
Prof Acemoglu noted that AI systems designed to assist workers, such as technicians, electricians, nurses and educators, are more likely to drive participation and productivity. However, he warned that automation-focused AI could threaten economic pathways for countries dependent on middle-skilled labour, constraining growth models that had previously worked across parts of South-East Asia.
Meanwhile, Dr Nageswaran also highlighted India’s limited access to computing and GPU infrastructure compared to the US and China, which affects the country’s ability to train large-scale AI models. He added that recent price cuts by global AI platforms would boost adoption but also raise concerns over data ownership and data sovereignty as more Indian users upload sensitive information.
The discussions stressed the importance of developing domestic computing capacity, India-specific datasets and robust data governance frameworks to ensure that AI adoption supports inclusive growth.
Pramod Bhasin, Chairperson of ICRIER, said: “We are delighted to renew our partnership with Prosus on building a Centre of Excellence on India’s Digital economy. Our research will provide critical insights into the digital transformation shaping India’s growth and global competitiveness, including the SIDE report, which has become a benchmark for progress in this space. The Centre’s research will also provide a platform for steering policies, regulations and practices to encourage growth in AI in India, along with inclusivity and security.”
Sehraj Singh, Managing Director of Prosus India, added: “Prosus and ICRIER share a long-standing commitment to shaping India’s digital future through research and dialogue. This renewed partnership comes at a time when technology and AI are redefining how economies grow and people work. By combining ICRIER’s research excellence with Prosus’s experience in innovation-led entrepreneurship, we aim to create actionable insights that guide inclusive and responsible digital transformation.”
