India is facing some challenges, including geopolitical ones and the emerging artificial intelligence (AI) that might pose a threat to its prosperity despite the country’s credible economic performance. 

Union Finance Minister Nirmala Sitharaman said, “India must develop domestic capacity as it seeks to double its per capita income in a few years. The country is facing Several persistent geopolitical challenges that may pose a threat to prosperity.”

The FM added that the emergence of AI might have a sizable impact on the labour market, which may in turn pose a threat to India’s prosperity. 

Nirmala Sitharaman was addressing the third edition of Kautilya Economic Conclave with the theme ‘The Indian Era’ that was organised by the Department of Economic Affairs and Institute of Economic Growth.

This remark by the FM comes months after the Economic Survey 2023-24 that stated that the adaptation of AI is rapidly transforming the job market and India will not “remain immune to this transformation” and asked the government and private sectors to come together in a “grand alliance” to leverage such technology to reshape jobs and not replace them. 

The review that was authored by researchers, which was led by chief economic advisor V. Anantha Nageswaran, said, “Artificial Intelligence casts a huge pall of uncertainty as to its impact on workers across all skill levels – low, semi and high.”

The review said that AI technologies could even create barriers and hurdles to sustain high growth rates for India.

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