As artificial intelligence accelerates across sectors, policymakers are grappling with a twin challenge—harnessing the technology for growth while managing its social and labour-market risks. Chief Economic Adviser V. Anantha Nageswaran has warned that without large-scale, rapid skilling, AI could widen income and opportunity gaps.
The Economic Survey notes that while AI can significantly boost productivity, its gains are likely to accrue disproportionately to highly skilled workers. This could expand wage differentials and leave low-skilled employees behind. Automation is already reshaping entry-level and routine roles, narrowing traditional job pathways for young workers without digital capabilities.
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Demographic dividend at risk
India’s large youth population has long been viewed as an economic advantage, but the Survey cautions that it could turn into a liability if young people are not trained in AI-relevant skills. Policy focus is shifting from mere internet access to capability building, digital hygiene and behavioural health.
The government is working with industry and academia to accelerate reskilling and upskilling programmes and to build a future-ready talent pipeline. The aim is to align labour-market transitions with technological change so that AI-driven opportunities are more broadly shared.
Digital addiction and productivity concerns
The Survey flags “digital addiction” as a growing socio-economic risk, linking excessive social media use to sleep deficits, declining academic performance and lower workplace productivity. With near-universal connectivity among those aged 15–29, the challenge is no longer access but the quality of engagement and mental wellbeing.
Younger users are seen as more vulnerable to compulsive usage patterns and harmful content. Policymakers are therefore examining age-appropriate platform design, stronger default privacy settings and mandatory digital wellbeing tools.
Debate on age-based social media access
The Union government has begun consultations with social media companies on age-based access controls. Some states are studying international models, including restrictions on users under 16. A private member’s bill proposes mandatory age verification and deactivation of underage accounts, though it is not yet official policy.
Supporters argue that unrestricted access fuels addiction, data exploitation and exposure to harmful content. Critics caution that age verification may be technically difficult to enforce and could push minors toward unregulated platforms.
Stronger regulation of deepfakes
Deepfakes are being treated as an emerging threat to social trust, electoral integrity and child safety. The government is exploring legal and technological safeguards beyond the existing data protection framework, including platform accountability, traceability mechanisms and rapid takedown protocols.
Balancing innovation with protection
As one of the world’s largest internet and social media markets, India’s policy choices will have long-term implications for its digital economy, education system and labour market. Economists argue that without coordinated action—combining education reform, industry participation and regulatory oversight—the benefits of AI may remain unevenly distributed even as overall growth accelerates.
The policy thrust is to ensure that AI drives innovation and job creation while mitigating social risks, particularly youth safety, digital health and inequality. How India balances these priorities is likely to shape the trajectory of its digital economy in the coming decade.
