India needs 8mn jobs a year to harness demographic edge

India currently has limited computing and GPU capacity available in the United States and China, affecting the country’s ability to train and develop large-scale AI models domestically- V Anantha Nageswaran, CEA

India must create nearly 8 million jobs annually over the next 10-15 years to capitalise on its demographic dividend which will only last until then, Chief Economic Adviser (CEA) V. Anantha Nageswaran has said.

At a webinar co‑hosted by Indian Council for Research on International Economic Relations (ICRIER) and Prosus at their Centre for Internet and Digital Economy, CEA Nageswaran highlighted that artificial intelligence (AI) should enhance rather than replace human work, particularly in healthcare and education.

In these sectors frontline professionals can be supported to deliver quality services at scale, especially in remote and underserved regions, he said.

Nageswaran also pointed out that India currently has limited computing and GPU capacity available in the United States and China, affecting the country’s ability to train and develop large-scale AI models domestically.

He noted that recent reductions in AI subscription pricing by global platforms - such as monthly plans now being offered at the cost of a single low-fee annual subscription -will accelerate user adoption, but also increase the volume of Indian data being captured by foreign AI systems.

CEA pointed out that when users increasingly upload files and documents rather than text prompts, the amount of granular and sensitive data generated from India is expected to rise, making data ownership and data sovereignty a central policy question going forward.

The event also featured Nobel laureate Professor Daron Acemoglu and focused on how Artificial Intelligence (AI) can be directed to support workforce development, productivity and improved service delivery in India.

Acemoglu argued AI tools that assist technicians, nurses and educators will boost economic participation and productivity, but AI that prioritises labour replacement could create economic pressures for countries with middle‑skilled workforces.

Pramod Bhasin, Chairperson, ICRIER, expressed happiness in renewing partnership with Prosus on building a Centre of Excellence on India’s digital economy.

Sehraj Singh, Managing Director, Prosus India, added that by combining ICRIER’s research excellence with Prosus’s experience in innovation-led entrepreneurship, “we aim to create actionable insights that guide inclusive and responsible digital transformation.”