Thu May 29 09:15:34 UTC 2025: **Summary:**

Chief Economic Advisor V. Anantha Nageswaran urged the Indian private sector to carefully consider the implications of widespread AI adoption, highlighting the need to balance technological advancement with the creation of jobs. Speaking at the Confederation of Indian Industry’s Annual Business Summit 2025, he emphasized that deploying end-to-end AI systems is a business decision, not an inevitability, and that companies should consciously decide where to integrate human labor to meet India’s need for eight million new jobs annually. Nageswaran pointed to the current trend where profit growth exceeds both capital formation and compensation growth as a challenge India needs to address in the coming decades.

**News Article:**

**India’s Economic Advisor Urges Caution on AI Deployment, Cites Job Creation Needs**

**New Delhi, May 29, 2025** – Chief Economic Advisor V. Anantha Nageswaran today cautioned the Indian private sector against over-reliance on artificial intelligence (AI) at the expense of job creation. Speaking at the Confederation of Indian Industry’s Annual Business Summit 2025, Nageswaran stressed that deploying fully autonomous AI systems is a strategic choice, not a foregone conclusion, and urged companies to prioritize human labor where appropriate.

“We are a country which has to create 8 million livelihoods every year at minimum,” Nageswaran stated, emphasizing the need for policies that balance capital-led growth with labor-intensive manufacturing. He highlighted that India cannot afford to continue a trend where profitability outpaces both capital formation and employee compensation growth.

Nageswaran’s remarks come in the wake of TCS chairman N. Chandrasekaran’s recent comments about the potential for “dark factories” powered by AI. The CEA addressed these concerns directly, stating that businesses can consciously decide where to stop AI deployment and instead utilize human labor. “Striking the right balance between AI deployment and labour is actually a business decision choice and is not inevitable,” he stated.

The Economic Advisor called for an open dialogue between the business community and the government to navigate the challenges and opportunities presented by AI, ensuring India’s economic growth benefits all segments of the population.

Read More