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AI-driven Economic Growth
Context:
NITI Aayog report highlights how Artificial Intelligence (AI) adoption across industries can boost India’s GDP growth toward 8% in the coming years.
Economic Impact of AI:
- AI can bridge 30–35% of the gap between India’s current GDP growth rate and the 8% target.
- Industries like pharmaceuticals, manufacturing, automobiles, and financial services are key candidates for AI-driven efficiency gains.
Pharmaceutical Sector Example:
- AI reduces cost of producing new molecules by ~10 times and cuts development time (~10 years) by ~50%.
- Enhances India’s potential for global drug innovation.
Workforce and Skilling Implications:
- AI adoption may disrupt jobs; measures suggested include mapping job shifts, lifelong learning, MSME digital upskilling, and protection for gig/platform workers.
Strategic Implications:
- India aims to take a leadership role in global AI impact, leveraging technology for both economic and international strategic advantages.
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