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CEA Stresses Urgent Need for Job Creation as Key to India’s Demographic Dividend
India needs to create 8 million jobs annually over the next 10–15 years to fully leverage its demographic dividend, said CEA V. Anantha Nageswaran during a webinar hosted by ICRIER and Prosus. He stressed that sustained job creation is essential for economic momentum. Nageswaran noted that AI should enhance, not replace, human work in sectors like healthcare and education, especially in remote areas. He highlighted India’s limited computing and GPU capacity, which restricts domestic AI model development, though cheaper global AI subscriptions may boost adoption. Nobel laureate Daron Acemoglu added that AI tools can raise productivity but labor-replacing AI poses risks for middle-skill economies.
A country like India needs to create 8 million jobs every year over the next 10-15 years to take advantage of its large population. Chief Economic Advisor (CEA) V. Anantha Nageswaran said, "Employment is a major source of demographic dividend. At the same time, this rapid pace of employment growth will also need to be maintained."
The CEA, during a webinar hosted by the Indian Council for Research on International Economic Relations and Prosus on Thursday, highlighted the importance of concentrating on job creation, which he said will not only generate livelihood opportunities but will also help strengthen the momentum of the economy in these difficult times.
He said, "Artificial Intelligence (AI) should help improve the work of professionals working in sectors like healthcare and education, rather than replacing human labor." He said that the expansion of quality services to frontline professionals in these areas should be supported by AI, especially in remote areas.
