India's IT Boom 2.0

Written by Manjari Sharma

In recent reports and studies, it's been proven and encouraged by various Indian firms that the implementation of AI can help them increase not just domestic productivity and growth but can also ultimately lead to a 2.5% increase in India’s GDP in the immediate term.

With the study being utilized in the growth of hardware such as computer machinery while also software such as databases- they're acting as a proxy for AI and have been reported to estimate "AI intensity" helping to create a relation between the use of AI and the total profit of the firm acquired.

One of the most prominent studies on this is by Nasscom with think-tank ICRIER and big body companies such as Google terming the Implications of AI on the Indian Economy which predicts that the use of such intelligence will only "trigger a positive growth shock" and these activities should be increased.

Furthermore, to support that encouragement, funding of Rs. 7000 crores have been declared in the Union Budget which has been stated to result in almost 1.3 times an increment in AI intensity and translating into spillover benefits that will then cause 3.2% of a spike in India’s GDP.

In terms of its connection to the GDP, there are several arguments to be made in terms of foreign competition as well. Amitabh Kant, CEO of NITI Aayog claims that AI acts as a global "strategic lever for economic growth" and will thrust the future of technology forward for everyone. He continued by adding that humanity can leap forward by years if we choose to become pro-AI for several national sectors.

However, the other argument does lie that AI remains expensive to use and can be hard to implement in economies that are struggling to afford necessities. This can cause rich countries to strive forward and force the third world countries to continue to struggle following the lines of the rich getting richer and the poor getting poorer.

Moreover, the prevailing pace of growth in AI investments is unpromising to improve the levels of AI intensity sufficiently. To get a truly triggering positive shock, the intensification has to be increased which may or may not happen with Rs. 7000 crores.

Reports also promote management models to advance AI’s wider implementation in India that categorizes various aspects in the country as a means to distribute these responsibilities. For example, having nodal agencies for the growth and distribution of AI, creating strategies that help engagement with the government, various industries, private sections, and even academia.

Various authoritarian bodies like Rajat Kathuria who acts as the Director and CE, ICRIER stated that government bodies are the key centers of helping AI to become a genuine means of management in the country by ensuring "public goods that enable India’s AI ecosystem" and resources to drive the functions of all administration at all levels. The early stages of AI can be said to be in progress with private sectors currently taking advantage of their financial capabilities.

Manish Gupta, contributing from Google's side, claimed that the company is working at impactful products working specifically with the aid of AI. In the healthcare division, which the director claims remains a personal issue to the country, there remains "room to get smarter in both wellness and preventive healthcare". Reviews of data from sensors in technological devices can assist the forestalling of diseases and even more importantly, the indication of these diseases in various mediums using Artificial Intelligence.

The question of whether AI could take its turn in legislation, judiciary, and even authoritative matters as we're now seeing will truly yield successful results in another dent in the economy.