Archive · 14 Nov 2025
India's Demographic Dividend: AI as a Supplement to Job Creation
India has a lot of young people right now, which is great for the country's future, but this won't last forever.
To make the most of this special time, India needs to create about 8 million new jobs every year for the next 10 to 15 years.
Experts think that smart computer programs like AI can help people do their jobs better, especially for doctors and teachers.
This way, AI can help provide good services to more people, even in faraway places.
But India doesn't have as much powerful computer equipment as some other countries to build its own advanced AI.
Also, as more people use AI, lots of information from India might be collected by companies in other countries.
This makes us think about who owns this information and how India can keep control of its own data.
India needs to create approximately 8 million jobs annually for the next 10-15 years to benefit from its demographic dividend.
Artificial Intelligence (AI) should be used to supplement human work, especially in healthcare and education, rather than replace it.
AI can help frontline professionals deliver better services at scale, particularly in remote and underserved regions.
India has limited domestic computing and GPU capacity, affecting its ability to develop large-scale AI models.
Reduced AI subscription costs may increase user adoption but also lead to more Indian data being captured by foreign AI systems, raising concerns about data ownership and sovereignty.
- Who
- Chief Economic Adviser (CEA) V. Anantha Nageswaran, Professor Daron Acemoglu
- What
- Discussion on India's need to create approximately 8 million jobs annually to benefit from its demographic dividend and the role of AI in this context, emphasizing its potential to supplement rather than replace human work and raising concerns about data sovereignty.
- When
- During a webinar co-hosted by ICRIER and Prosus.
- Where
- At ICRIER and Prosus' Centre for Internet and Digital Economy.
- Why
- To discuss strategies for India to capitalize on its demographic dividend, leverage AI for workforce development and productivity, and address the associated risks of data ownership and economic pressures from AI.
AI as a Supplement
AI as a Replacement
Impact on Workforce and Economic Stability
AI as a Supplement
AI should enhance human work, particularly in sectors like healthcare and education, supporting professionals to deliver services at scale, especially in remote and underserved regions. This approach boosts economic participation and productivity.
AI as a Replacement
AI tools that prioritize labor replacement could create economic pressures for countries with middle-skilled workforces, potentially leading to job displacement.
- Job Creation Target
- 8 million jobs annually for the next 10-15 years
- Demographic Dividend Window
- Next 10-15 years
- Advocated AI Role
- Supplement human work, not replace
- Key Sectors for AI Support
- Healthcare and Education
- India's AI Infrastructure
- Limited domestic computing and GPU capacity compared to US and China
- AI Subscription Trend
- Reduced costs accelerating user adoption
- Data Concerns
- Increased foreign data capture, raising data ownership and sovereignty issues
Sources
Need 8 million jobs annually to reap demographic advantage, AI to supplement: CEA Nageswaran
CEA Nageswaran says India needs 8 million jobs a year, AI to play key role
Need 8 million jobs annually to reap demographic advantage, AI to supplement: CEA Nageswaran
