Prime Minister Narendra Modi is scheduled to participate in the AI Action Summit in Paris in February 2025. The Summit assumes significance, considering it will bring together the US, China, India, Gulf nations, and many more countries to discuss artificial intelligence (AI) and its implications for global governance, innovation, and society.
Artificial Intelligence (AI) promises to usher in a new age, one where a bulk of the economically valuable work is automated across various fields, but at the same time, it can result in largescale labour displacement, especially in the middle and lower quartiles of the wage distribution.
In 2025, policymakers have to factor in the possibility of such an outcome materializing in connection with automation, which must be taken very seriously, especially for a country like India. India’s economy is predominantly service-oriented, with a large portion of its IT workforce engaged in low-value-added services.
These roles are particularly vulnerable to automation, as companies may replace labour with technology to reduce costs.
Andrew Haldane, the former Chief Economist of the Bank of England, once stated that previous industrial and technological revolutions have been painful and characterized by widespread economic hardships, protracted unemployment for those displaced,d and widening income inequalities.
So, the effort should be to minimize the negative impacts of creative destruction; a collective societal effort is required, involving the creation of new social infrastructure to promote environments where innovation leads to inclusive growth. India will, therefore, have to fast-track the creation of robust institutions through a tripartite compact between the government, private sector and academia.
Among the measures to leverage AI is the essentiality of Social Infrastructure encompassing Enabling Institutions, Insuring Institutions and Stewarding Institutions to help graduate the Indian workforce towards mediumand high-skill jobs, where AI can augment their efforts rather than replace them. However, building these institutions is a time-consumingprocess due to the need to mobilize a massive amount of intellectual and financial resources towards a singular goal.
As history also shows us, through careful integration and institutional support, automation brought along with it a rise in the employment-topopulation ratio over the 20th century. In this context, the future of work revolves around ‘Augmented Intelligence’, where the workforce integrates both human and machine capabilities.
This approach aims to enhance human potential and improve overall efficiency in job performance, ultimately benefiting society as a whole. In this light, by leveraging its young, dynamic, and tech-savvy population, India has the potential to create a workforce that can utilize AI to augment their work and productivity.
The policymakers must balance innovation with societal costs, as AI-driven shifts in the labour market could have lasting effects. Similarly, the corporate sector also must act responsibly, handling the introduction of AI with sensitivity to India’s needs.
The government is mulling establishing an Artificial Intelligence Centre for Excellence (CoE) at top educational institutions across India with a Rs. 1 lakh crore financing corpus to catalyze private sector innovation and R&D in sunrise sectors.
Positioning India as a Global Space Economy Leader
At present, the Indian space economy is valued at approximately USD 8.4 billion, constituting a 2% share of the global space market. The government envisions scaling the space economy to USD 44 billion by 2033, including US $11 billion in exports amounting to 7-8% of the global share.
This growth is anticipated to be driven by private sector participation, including a promising pipeline of around 250 startups currently operating across various segments of the space economy in India.
Many countries have recognized the strategic importance of the space sector and established space-focused VC funds to drive innovation, foster private-sector participation, and strengthen national capabilities.
Examples include the 30 million GBP Seraphim Space Fund of the UK, 86 million Euro Primo Space Fund of Italy, US $6.7 billion Space Strategic Fund of Japan and Neo Space Group (NSG) by Public Investment Fund (PIF), Saudi Arabia. Through its VC Fund, India aims to adopt a similar approach, supporting its startups and fostering a strong space innovation ecosystem while driving the local development of space technology and related services.
The Rs. 1,000 crore VC Fund under IN-SPACe signifies a milestone in India’s space sector evolution, demonstrating the government’s commitment to achieving self-reliance and establishing India as a global leader in space.
By providing risk capital, creating jobs, fostering innovation, and encouraging private sector participation, the fund aligns with national priorities to strengthen India’s capabilities in the high-tech domain. It is not only a financial commitment but also a long-term strategic investment in building a vibrant, innovative, and sustainable space economy that aligns with the goals of Atmanirbhar and Viksit Bharat.
The government’s Space Vision 2047 includes ambitious projects like the Gaganyaan mission and the Chandrayaan-4 Lunar Sample Return Mission. Public sector investment alone cannot meet the requirements of infrastructure, and private sector participation will be crucial to bridge the gap.