Chief Economic Advisor Urges AI Education and Enhanced Healthcare for Youth to Secure India's Economic Future

Anantha Nageswaran, Chief Economic Advisor to the Finance Ministry, has emphasized the critical need for India to prepare its youth for the transformative power of Artificial Intelligence (AI). Here's a breakdown of his key points at the CII Annual Business Summit 2024:

AI as a National Challenge and Opportunity:

• Nageswaran identified AI as a major factor impacting future lives and employment prospects.
• He stressed the importance of preparing young Indians to harness AI's potential and benefit from its disruptions.
• This challenge is magnified by India's large youth population compared to other nations.

Holistic Development for Demographic Dividend:

• Nageswaran highlighted the need to prioritize both physical health and AI readiness for youth.
• He emphasized that a healthy (physical, mental, and emotional) young population is crucial for achieving the 'demographic dividend' and economic growth.

Balancing Growth with External Risks:

• Nageswaran acknowledged the challenges of balancing economic growth, energy security, and a sustainable energy transition.
• He pointed to potential risks arising from global financial conditions, interest rate fluctuations, and US dollar movements.
• India needs to navigate these complexities while maintaining high growth amidst geopolitical tensions and a global trade slowdown.

Financial Stability and Market Valuations:

• Nageswaran flagged global financial stability as a critical risk factor for India, considering current market valuations.

Addressing Employment and Skill Gaps:

• Nageswaran expressed confidence in India's ability to address future employment challenges through improved physical and digital infrastructure, along with stronger bank balance sheets.
• However, he acknowledged the need for further focus on skilling and improving employability.

Manufacturing and Job Creation:

• Nageswaran identified an opportunity to grow India's manufacturing sector to create more low and semi-skilled jobs while contributing to overall employment generation.

Focus on Education Outcomes:

• Nageswaran acknowledged India's success in expanding educational access but emphasized the need to improve learning outcomes.

Government Initiatives:

• The government has approved an AI mission with a budget of ₹10,372 crore for the next five years.
• This mission includes subsidizing private companies setting up AI computing capacity in India and providing seed funding for AI startups.