The Economic Survey 2024-25, tabled in Parliament on Friday, has underscored the need for India to revisit its artificial intelligence (AI) regulatory framework. The survey emphasises the importance of balancing innovation with accountability, ensuring that AI is integrated into the economy in a way that aligns with societal values.

The Economic Survey stresses that India stands at a crucial juncture where AI-driven transformation can significantly boost economic growth. However, to fully capitalize on this opportunity, the country must strengthen institutional capacity, upgrade the education system, and establish safety nets for workers who might be affected by automation and AI-driven disruptions.

The report states, “Learning from past experiences, capacity building and institutional development are essential for India to maximize the opportunities ahead.” This highlights the need for proactive steps in policy formulation and industry collaboration to ensure AI’s benefits are widely distributed across sectors.

The Economic Survey acknowledges that AI will impact employment across the globe, but the challenge is especially significant for India due to its large workforce and relatively low per capita income. The report recommends a gradual introduction of AI into workplaces to mitigate job displacement. It also suggests that corporations must demonstrate greater social responsibility in managing the workforce transition.

To cushion the economic and social impact of AI, the government is urged to consider taxing profits generated from AI-driven automation. This taxation could help mobilize resources to reskill displaced workers and support industries adapting to AI integration. Such measures can ensure economic stability while supporting technological growth.

One of the key concerns raised in the survey is the need for structural reforms in the education system. The existing curriculum must evolve to equip students with AI-related skills, critical thinking abilities, and technological adaptability. The report suggests that academic institutions, industry leaders, and the government should collaborate to ensure that AI-driven productivity gains benefit a larger section of society.

A proposed tripartite agreement between the government, private sector, and academia could facilitate a smoother transition into an AI-powered economy. The survey suggests that by acting now, India can build robust institutions that will help minimize costs and maximize benefits, making AI a tool for inclusive growth rather than economic disparity.

Drawing lessons from global AI adoption trends, the report highlights the importance of developing AI governance models that promote transparency, fairness, and ethical considerations. Several advanced economies have already begun implementing stringent AI regulations, and India must take similar steps while ensuring that policies are tailored to its unique economic and demographic landscape.

Additionally, the survey calls for domestic innovation in AI development, reducing dependence on foreign AI solutions and strengthening India’s position as a global AI hub. Encouraging public-private partnerships in AI research, enhancing funding for AI startups, and cross-industry collaboration are some of the key strategies outlined in the report.

The Economic Survey 2024-25 makes a strong case for a well-calibrated AI policy that enhances technological advancement, safeguards workers, and promotes inclusive growth. India must act swiftly to build resilient institutions, invest in AI education, and create a regulatory environment that enables responsible AI adoption.

By revisiting its AI framework now, India can position itself as a global leader in AI innovation, ensuring that economic growth remains sustainable, equitable, and forward-looking. The coming years will be crucial in defining India’s trajectory in the AI revolution, making strategic policy decisions imperative for national progress.

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