Table of Contents
India is now a Global AI Leader
Huge Potential Contribution to GDP and Indian economy
Need for Education and Skill Development
For the last few years, the Indian economy has been going through significant changes due to worldwide challenges. Despite fluctuations in the economic rise of India, the technological sector in India is showing unwavering advancements. It has been a reason for hope of many people. Since the first wave of technological revolution, the transformation of India has been nothing less than remarkable.
This has especially been true after the emergence of Artificial Intelligence (AI). The technology sector is committed to continuous change and has undergone plenty of advancements, thereby improving the quality of life for millions of people in the country. In 2023 and beyond, should Indian investors and traders be happy or worried about the impact of AI on the Indian economy? Read on and find out.
Open an account with Angel One.
India is now a Global AI Leader
In 2023, India happens to be one of the Top 10 countries in the world for funding in artificial intelligence and technology advancements, as per research by The Brookings Institution. As per a joint study by the IAMAI and Microsoft, we now know that the AI market of India is anticipated to experience 20% growth over the next 5 years. This makes it the second fastest-growing market in the world, right after China.
India’s position as a global AI leader, and a top name in technology advancements, can attract foreign partnerships and investments. This can help to boost the Indian economy and lead to more opportunities being created for investors and traders across the country.
With the fast growth of the Indian AI market, many investment opportunities are being created in companies at the forefront of innovation and research on state-of-the-art technologies. With the expansion of the market, these investments will possibly increase in terms of value. Investors and traders in India, potentially, are expected to gain high returns.
Chances of More Job Creation
Today, ML and AI are not simply buzzwords for Indian economic growth. These have become very important tools for many businesses, for improving user experience, giving a boost to efficiency and taking revenues upwards. By deploying ML and AI technologies, India has witnessed nothing short of a digital transformation in the recent months. It has created an amazing number of jobs. According to a forecast by Gartner, by 2025, AI and ML will lead to the creation of 2 million new jobs in the country, leading to a brighter Indian economic future.
AI and ML technologies are now being used across different sectors, ranging from retail to finance and medicine to agriculture, bringing a revolution in all such industries. The improvements in such technologies can result in higher productivity and efficiency in various sectors.
This can lead to reduction in expenses and more profitability for organizations. It can have a positive impact on economic development in India and stock prices, which can consequently benefit investors and traders in India.
The country, however, suffers from a lack of resources and infrastructure dedicated to development and research of Artificial Intelligence. Although private and public sectors have started investments in such areas, India is still lagging behind countries like the United States or China, which are reported to have made heavy investments in AI research and development.
Read on – Indian Economic Growth Vs Chinese Economic Growth: 2024 and Beyond, Who Will Emerge Taller?
Vast Talent Pool
India has a robust talent pool in ML and AI innovation, regarded as the keys for the future of Indian economy. It happens to be among the top three talent markets producing 16% of the AI talent pool of the world, as per the study by IAMAI and Microsoft.
The nation has the resources needed for driving growth and innovation in these sectors. It can help in the development of new services and products, and foster a culture of investment and entrepreneurship.
When investors see a strong potential for innovation and growth, they are likelier to invest in new technologies and companies in these sectors. This can give a further boost to the Indian economy. It can lead to many successful businesses – from start-ups to big enterprises – being established, and have a vast contribution to the GDP of India.
Huge Potential Contribution to GDP and Indian Economy
According to a report published by TeamLease, AI is anticipated to add as much as 967 billion USD to the Indian economy by the year 2035. It will also have 450 – 500 billion USD worth of contribution to India GDP growth by the year 2025 and account for 10% of the 5 trillion dollar GDP of the country.
Such a huge contribution of AI to the economic GDP of India and Indian economy signifies the potential for big ROI in technologies and companies driven by AI. With increasing integration of AI into different industries, companies adopting such technologies early on can expect growth in market share and profitability.
Further, the advancement of AI technologies can be useful for more efficient operations and more informed decision-making for businesses. This can result in better performance as well as savings in costs.
Open an account with Zerodha.
Need for Education and Skill Development
According to a report by NASSCOM, the technology industry of the country has recorded a growth of 15.5%. In 2022, it reached revenues of 227 billion USD. Due to this Indian economic growth and development, new opportunities have been created for millions of people and India could be transformed as a consequence. In the wake of fast global changes, the Indian economy has seen some amazing developments in the last few years.
The rising demand for AI technology across the globe provides Indian companies with an opportunity to become leaders in the domain and open up potential for international collaboration and trades. With a positive impact, investors and traders can get enough chances to capitalize on this growth and make contributions to the development of Indian economy.
While the future of economy in India looks brighter with these emerging technologies, a cause for some concern remains about whether not India can compete with other major countries across the globe when it comes to providing professionals and students with AI skills and training.
It will be crucial for the Indian economy to address all these challenges, fully harness the potential of ML and AI technology and become a global leader in this domain. There is a need for increased collaboration between the industry, the academia and the government to create conducive ecosystem for innovation and development in AI and ML technologies. A concerted effort is required to create programs, incentives and policies that support the growth of these technologies in India.
Read on – Indian Economy in 2024: Financial Predictions by Top Experts.
Conclusion
In 2023 and beyond, the Indian economy appears to be on a promising trajectory, thanks to the positive impact of ML and AI technologies. Indian investors and traders should be pleased about such developments, given that these are set to open up new opportunities for innovation growth and profitability. However, it is essential for companies to invest actively in such technologies and talent pool, in order to maintain a competitive global edge and take the Indian economy graph upwards.
