FM Sitharaman flags AI talent gap as hurdle to productivity-driven growth

Finance Minister Nirmala Sitharaman

Finance minister Nirmala Sitharaman on September 15 said while the Indian industry is increasingly adopting artificial intelligence, the lack of AI-ready workforce resources is creating a mismatch.

Productivity improvements through AI integration are critical for accelerating growth, the minister said, as the government pushes ahead with a technology-driven growth strategy, positioning artificial intelligence as a key driver of productivity and innovation.

“To accelerate growth in our economy, productivity needs to improve and for that AI adaption by industry is must. Many of them are doing it, but there is a mismatch. They are doing AI adoption, but the market is not giving them AI ready human resources,” the minister said.

She was speaking at the release of the report Roadmap for AI for Viksit Bharat: An Opportunity for Accelerated Economic Growth and the “NITI Frontier Tech Repository”.

A shortage of skilled workforce is constraining industry’s ability to maximise gains from AI adoption. She stressed the need for stronger collaboration to scale up AI-focused skilling and workforce readiness programmes.

Laying the tech groundwork 

Sitharaman also called for wider participation of districts in AI-driven initiatives.

“NITI Aayog has over 300 districts which are aspirational districts, who are in the live connect to highlight what kind of work or adaptation using AI is happening in the district,” she said. NITI Aayog should see that the remaining 400 districts, too, should be a part of the AI repository. All the 760–770 districts should be able to benefit from AI, she said.

The government’s think tank should evolve from being only a repository to actively shaping policy. “Hope NITI Aayog not only becomes a repository but also instrumental in getting all these people together and driving govt policy,” Sitharaman said.

Urban solutions

Sitharaman highlighted the role of AI in improving infrastructure and planning. “AI should help us give solutions for better cities, urban areas which exist, and for newer urban sectors. I think we need to have a greater understanding that AI probably is capable of giving us in situ solutions without having to remove people from where they are,” she said.

Regulation vs technology

Regulation must keep pace with the rapid progress of AI. “Need the ethical application of AI and so but that bridge is probably now crossed but that has to be kept up because AI is not static,” she said.

AI can also have its challenges, which are challenge not just in jobs… “regulation has to be running equally as much as the technology is running it. If the technology is on a sprint, regulation should also be on a sprint”, the minister said.

AI should not just be seen as a threat to jobs. “I don't think it's a gloomy picture of so many people who are going to get thrown out of jobs due to AI. In terms of AI-driven upskilling programmes, I would want more inputs to come to the government to see how best we can use it,” Sitharaman said.

8% growth

NITI Aayog CEO BVR Subrahmanyam underscored the role of new technologies can play in helping India become a developed nation. “India being a frontier tech country is synonymous with being Viksit Bharat,” he said. “India needs to bump up the growth rate to 8 percent to become Viksit Bharat. AI is a possibility to increase productivity and innovation.”

Subrahmanyam also announced the launch of a frontier tech challenge to encourage local innovation.

If districts or blocks use frontier technology to make a difference in healthcare, education, nutrition, agriculture, the best 50 will be funded by NITI Aayog, he said. States take the lead in adopting frontier technologies in governance.

Communications and IT minister Ashwini Vaishnaw said India’s growth momentum is being powered by technology. “India is very stable, growing in a consistent way. Today, the growth is inclusive. The growth is robust, and it's driven by technology. Technology is a fundamental base of this growth,” he said. AI is changing the way “we work, the way we live, the way we consume”, Vaishnaw said.