India's AI Job Challenge: Entry-Level Roles at Risk

India is focusing on strengthening its manufacturing capabilities and attracting foreign investment to support its ambition of becoming a developed nation by 2047. Chief Economic Adviser V Anantha Nageswaran emphasized the importance of building economic resilience against a backdrop of geopolitical tensions and supply chain vulnerabilities.

Manufacturing is identified as central to diversifying India's growth and enhancing economic security. The nation needs to simultaneously develop both its manufacturing and services sectors, ensuring export competitiveness alongside import substitution.

Attracting foreign investment requires improved state and national policies, including tax certainty and access to a skilled workforce. India must also build resilience by identifying and preparing for disruptions in critical supply chains.

Regarding artificial intelligence, Nageswaran pointed to research suggesting AI's impact on junior workers. For India, a slowdown in entry-level job creation due to AI could exacerbate inequality and pose social risks. The focus should be on developing both AI-enabled and AI-insulated jobs, particularly in labor-intensive sectors.

Despite global challenges, India's economic growth remains resilient, expanding at 7.8%. Sustained growth is attributed to reforms in digital public infrastructure, financial inclusion, and capital expenditure. Combining these gains with enhanced manufacturing and employment opportunities is key to achieving long-term development goals.