India’s pursuit of enhancing productivity through artificial intelligence (AI) is taking center stage, as highlighted by S. Krishnan, the secretary of the Ministry of Electronics and Information Technology. During the India @2047 event, Krishnan underscored the need for AI systems, particularly generative AI, to bolster productivity across various sectors.
Generative AI, which gained prominence with the introduction of ChatGPT, has revolutionized content creation. However, Krishnan emphasized that India’s focus should be on leveraging AI to accelerate processes such as drug discovery in the pharmaceutical sector and improve outcomes in manufacturing and other industries. By doing so, India can position itself as the global back office for AI and emerging technologies.
The integration of AI with the Internet of Things (IoT) is seen as a crucial factor in enhancing productivity. IoT devices, which connect to the internet to exchange data, can generate actionable insights that AI systems can utilize to streamline operations and increase efficiency.
Krishnan also highlighted the impact of the Information Technology Agreement (ITA) by the World Trade Organization, which facilitated the growth of India’s IT sector by eliminating import duties on critical IT products. This development has been instrumental in the sector’s expansion, now valued at $255 billion, with $200 billion attributed to exports.
As India continues to grow as a major IT hub, Krishnan stressed the importance of establishing resilient supply chains within the country. With the increasing consumption of IT products, the government has taken steps, such as the Product-Linked Incentive (PLI) scheme, to boost local manufacturing. This initiative provides financial incentives to companies meeting production targets, aiming to increase the value addition within the country.
Despite progress in exporting mobile phones, Krishnan noted that the overall value addition remains low due to reliance on imported components. To maintain competitive advantage, companies must focus on enhancing local value addition, particularly in component manufacturing.
Krishnan concluded by emphasizing the significance of designing and developing products in India. Ownership of intellectual property and product design within the country is crucial for generating substantial economic value. This approach will not only lead to increased profits but also reinvestment in various sectors, driving further growth.
As India navigates the future of AI and technology, these strategic initiatives are set to transform the nation’s economic landscape, ensuring sustained growth and global competitiveness.
