NEW DELHI: Finance Minister Nirmala Sitharaman on Monday stressed the importance of regulations that encourage technological innovation responsibly, particularly in the field of artificial intelligence (AI), rather than hindering it.
Speaking at the release of the report “AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth”, she said the government is committed not only to adopting AI technologies but also ensuring their responsible use across sectors.
“We do not want regulations that simply stifle technology. Regulations are needed to ensure its responsible application,” she said, highlighting the report prepared by Niti Aayog.
“AI is rapidly evolving and dynamic. We must remain vigilant about ethical considerations, as AI also brings challenges,” she added, noting that the impact extends beyond jobs to potential misuse affecting society.
The report indicates that while AI is expected to create numerous new roles, it may also displace many existing jobs, particularly in clerical, routine, and low-skill segments. For India, the dual challenge lies in preparing a workforce with advanced digital and AI skills to capture emerging opportunities while ensuring that displaced workers are reskilled, redeployed, or absorbed into other growth sectors.
It further notes that productivity gains and innovation must be accompanied by market creation to drive growth. India will need to simultaneously strengthen domestic demand and enhance participation in global value chains, which will require alignment of industrial and trade policies amid rapidly evolving international regulations.
For example, the European Union’s AI Act will gradually impose obligations on general-purpose and high-risk AI systems, while new climate-related trade measures, such as carbon border adjustments, are expected to influence market access.
