- CEA Nageswaran highlighted AI's threat to cognitive jobs and coding roles in India’s IT sector
- He emphasised creating jobs complementary or independent of AI in non-cognitive sectors
- The Budget targets care economy, allied health, tourism, and orange economy for AI-resistant jobs
Dr V Anantha Nageswaran, Chief Economic Advisor (CEA), shares his insights on the implications of artificial intelligence (AI) on jobs and the economy on Saturday, Feb. 7, at the NDTV Profit conclave. When asked about the growing realisation of AI's potential impact, particularly on the IT services sector, Dr Nageswaran acknowledged the challenges while emphasising a strategic approach to employment in India.
“Unfortunately, it is difficult to give you precise answers to this. All of us know in the abstract that cognitive jobs and coding will be under threat. People like Mr Vembu (Zoho founder Sridhar Vembu) are tweeting about Anthropic's products or how they are so good at coding. So, this is something that has been brewing for quite some time, but I think the specific impact in terms of more than laying off people, in terms of future hiring, will be impacted,” he said.
Dr Nageswaran stressed the importance of creating jobs that are complementary to AI or independent of it. “And that is where I think we need to, therefore, create non-cognitive jobs where AI complements humans or where jobs can be generated independent of AI. And you look at the Budget. Four areas stand out, though they were not packaged in that manner. Whether it is the care economy ecosystem, allied health professionals, tourist guides or the orange economy that the Budget spoke about, these are all areas where you are aiming to create skilling and jobs in sectors that will not be touched by AI, and which can flourish independently of AI. And that is the way to look at it.”
He outlined a dual approach for India's workforce in the AI era. “So, one is to prepare your youth to be able to participate in the world that will be dominated by AI in cognitive spaces. And the other is to strengthen and make it respectable and fashionable to work in areas which are not necessarily located in steel and glass buildings.”
The CEA also reflected on India's overall economic developments over the past year, including the Economic Survey, the Union Budget, monetary policy announcements, and bilateral trade agreements such as the India-US interim trade deal and the India-EU free trade agreement. He said the combination of these reforms has positioned India's economy well for the financial year 2026-27.
On the outlook for India's GDP, Dr Nageswaran said, “In the couple of days since the US-India agreement came into the picture, I did say that there is an upside risk to my range of 6.8 to 7.2, or let's say the midpoint is 7. Now I can think of an upside that could last anywhere between 20 and 40 basis points.”
He added that while positive India-specific developments are clear, a cautious approach is still necessary.
On the potential implications of conditions in the India-US trade deal, such as stopping oil imports from Russia, he noted the sensitivity of such topics. “I think these are relatively sensitive and I don't think there is much to be gained by speculating on these things in public. At the same time, on oil prices, other things being equal, if the Iran situation doesn't get out of control in the Middle East and oil prices remain the same from a high procurement perspective, it may not necessarily mean a big deal of difference to India,” he said.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.