Tue Jan 21 11:18:21 UTC 2025: ## IMF Official: AI to Impact 26% of India’s Workforce, but Mostly Positively

**Davos, Switzerland** – A significant portion of India’s workforce will be affected by the rise of artificial intelligence (AI), but the impact is expected to be largely positive, according to Gita Gopinath, the Deputy Managing Director of the International Monetary Fund (IMF). Speaking at the World Economic Forum in Davos, Gopinath estimated that 26 percent of India’s workforce across all sectors is exposed to AI. However, she noted that 14 percent of these jobs are projected to benefit from AI and related technologies, while only 12 percent face potential displacement.

Gopinath’s assessment aligns with previous statements by Amitabh Kant, India’s G20 Sherpa, who highlighted the inevitability of AI’s advance and the creation of new job categories. This sentiment was echoed at the NDTV World Summit, where Prime Minister Narendra Modi emphasized the government’s commitment to increasing AI adoption across various sectors.

Regarding the global economic impact of AI, Gopinath acknowledged considerable uncertainty but pointed to estimates suggesting a yearly productivity increase of 0.1 to 0.8 percent. She emphasized that the actual effect on jobs will depend on factors like technological adoption rates and government initiatives to facilitate integration into the workforce. She stressed the importance of building digital public infrastructure and upskilling the workforce to utilize new technologies.

While the IMF projects steady global growth of 3 to 3.5 percent for 2025/26, Gopinath highlighted significant divergences among major economies. She noted the strength of the US economy, contrasting it with the weaker performance of Europe and the challenges faced by China. She suggested specific policy actions for each region to achieve balanced growth.

Gopinath expressed optimism about India’s economic outlook, describing it as the fastest-growing major economy despite a projected growth rate of 6.5 percent for the current fiscal year, slightly lower than initial expectations. She attributed this slowdown to a slow start in public investment following the federal election and predicted a rebound, citing strengthening rural consumption. To achieve higher growth rates and meet the government’s goals, she recommended increased investment in public infrastructure, improved ease of doing business, and tariff reductions.

Finally, while declining to speculate extensively on the potential impact of US trade policies under President Trump, Gopinath noted the current positive sentiment among foreign investors in the US.

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