On Thursday, Finance Minister Nirmala Sitharaman stated that the adoption of AI will help India become the world’s third-largest economy, thereby boosting productivity.

Speaking with University of Delhi students at the Institute of Economic Growth, the Finance minister said, “The kind of industries which are going to play a big role in speeding up India getting to the third position will largely depend on those which adopted AI. So, there is no ‘India’ industry or ‘Bharat’ industry, meaning new-age industry versus the traditional, old-fashioned industry”.

India, currently the world’s fifth-largest economy, is already on track to surpass Japan by March 2026, according to the IMF. Finance Minister now emphasises that widespread AI adoption will be the key driver to propel India towards becoming the third-largest economy in the world.

The Finance Minister said India needs to boost productivity to meet its fast growth goals. So, the government is looking at key sectors for investment and pushing for more technology use.

She said, “Technology being adopted could have multiplied your productivity faster than otherwise… Today, the rapidity with which some sectors are showing drastic change, I find the feature defining that drastic change is the adoption of technology”.

The Finance Minister noted that transitioning to green energy is more difficult today, as many countries now understand the “true cost” of moving from fossil fuels to renewables. New taxes on products made with high pollution are making it harder for countries like India, even though they’re already moving to clean energy.

Sitharaman highlighted India’s skill in using technology within its military, stating Operation Sindoor as a great example for defence experts. She praised how this operation seamlessly brought together different equipment and allowed the Army, Navy, and Air Force to work together smoothly. She also noted that while India does import some defence items, it mostly produces its own critical military equipment.

Source:

https://indianexpress.com/article/business/industries-adopting-ai-to-play-a-big-role-in-india-becoming-3rd-largest-economy-says-fm-nirmala-sitharaman-10037406/