Finance Minister Nirmala Sitharaman on Monday underscored the importance of crafting regulations that nurture, rather than stifle, technological innovation, particularly in the rapidly evolving field of artificial intelligence (AI). Speaking at the launch of the NITI Aayog report titled AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth, she emphasized the government’s commitment to adopting AI responsibly across sectors while ensuring its potential is not curtailed by overly restrictive policies.

“We do not want regulations that literally wipe out technology itself. We want regulations because we want a responsible application,” Sitharaman said, highlighting the need for a balanced approach. She acknowledged AI’s dynamic nature, noting, “AI is a rapidly progressing, real-time, dynamic thing, and we must remain vigilant about its ethical challenges.” The minister pointed out potential risks, including job displacement and societal repercussions from misuse, urging stakeholders to address these proactively.

The NITI Aayog report projects that AI will create new roles but also disrupt existing jobs, particularly in routine and low-skill sectors. For India, this presents a dual challenge: equipping the workforce with advanced AI and digital skills to seize emerging opportunities, while reskilling and redeploying those displaced into other growth sectors. The report stresses the importance of aligning productivity gains with market creation to drive economic growth, advocating for stronger domestic demand and deeper integration into global value chains.

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Sitharaman also highlighted the evolving global regulatory landscape, citing the European Union’s AI Act, which will impose obligations on general-purpose and high-risk AI systems. Additionally, emerging climate-related trade measures, such as carbon border adjustments, could reshape market access conditions, necessitating agile industrial and trade policies to keep India competitive.

The Finance Minister’s remarks signal a forward-looking approach to harnessing AI’s potential for India’s development while addressing its challenges. By prioritizing innovation-friendly regulations, the government aims to position India as a global leader in responsible AI adoption, fostering economic growth and societal benefits. As the nation navigates this transformative era, the focus remains on balancing technological advancement with ethical considerations and workforce readiness.

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