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Indian Express
29-05-2025
- Business
- Indian Express
Industries adopting AI to play a big role in India becoming 3rd largest economy, says FM Nirmala Sitharaman
Industries which have adopted artificial intelligence will be instrumental in making India the third-largest economy in the world, Finance Minister Nirmala Sitharaman said on Thursday, adding that productivity gains are faster when technology is adopted. 'The kind of industries which are going to play a big role in speeding up India getting to the third position will largely depend on those which adopted AI. So, there is no 'India' industry or 'Bharat' industry, meaning new-age industry versus the traditional, old-fashioned industry,' the Finance Minister said in response to a question at a discussion with students of University of Delhi at the Institute of Economic Growth. India, currently the fifth-largest economy in the world when the GDP is measured in terms of current prices, is projected by the International Monetary Fund to become larger than Japan in the current fiscal ending March 2026. The Finance Minister noted that productivity has not risen in India as rapidly as the ambition to grow fast. To change that trend, attempts have been made to identify sectors where funds can be invested by both the government as well as the private sector. The adoption of technology, Sitharaman said, was another factor. 'Technology being adopted could have multiplied your productivity faster than otherwise… Today, the rapidity with which some sectors are showing drastic change, I find the feature defining that drastic change is the adoption of technology,' she said. Cost of climate transition In response to a question on the transition to green energy, the Finance Minister said that while the issue has not changed in the last couple of years, the answer has become more difficult as many countries have understood the 'true cost of having to move from fossil fuel to renewable'. At the same time, some countries decided to impose tariffs on 'not-so-green products', the Finance Minister added, putting pressure on countries such as India who were already making the move to renewable sources of energy. 'So, if you were to ask me what are you doing about it, we are only making sure that globally we are negotiating to make sure that the global multilateral institutions will have that kind of leverage with their funds so that they can fund for common cause public goods,' Sitharaman said, pointing to NK Singh – Chairman of the 15th Finance Commission and the moderator for the session — and citing the expert group he co-chaired with former US Treasury Secretary Larry Summers during India's G20 presidency to suggest ways to strengthen multilateral developments so that they can meet global challenges such as climate change. Singh, in his opening remarks, said India was at a 'unique moment' as it sought to balance security and development. 'Is it possible to be a self-subsistence, secure economy and yet seek high rates of economic development? What about its economic and fiscal consequences?' Singh said. Defence tech integration Commenting on India's defence capabilities, the Finance Minister said the 'mastery in technology integration' across the three arms of defence forces shown by India during Operation Sindoor could be studied by defence experts. 'Your systems in defence today are able to integrate equipments coming in from elsewhere. They can talk to our operational systems and our operational systems are capable of functioning on their own and between the three forces: air force, army, and navy. There is that interoperability.' On defence production, Sitharaman – who has previously served as the defence minister – said that while India does import certain components, 'largely you are producing that which you need for your precision operations'.
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Business Standard
29-05-2025
- Business
- Business Standard
Industries with AI to propel India to 3rd-largest economy: FM Sitharaman
The industries that will play a key role in propelling India to become the third-largest economy in the world will largely be those that adopt artificial intelligence (AI), Union Finance Minister Nirmala Sitharaman said on Thursday. Interacting with students at an Institute of Economic Growth event, the FM said: 'They can be any industry. Productivity gains and the efficiencies that you are bringing in because of the adoption of such technology is what is going to define these industries, which will rapidly allow India to move to the third position.' According to estimates by the International Monetary Fund, India will become the fastest-growing major economy in the world in FY25 and is expected to overtake Japan to be the fourth-largest economy in 2025. Highlighting how India's productivity had not caught up with its ambition to grow fast, Sitharaman said: 'I am not saying there was never an attempt to improve, but trying has not been facilitated with many other changes that could have been adopted. Technology is one of them.' The adoption of technology, the FM said, could have accelerated productivity gains. She said the defining feature of the transformation in some sectors is the adoption of technology, including Web3. Also Read The finance minister said that the way India's common people have taken to digital financial transactions has amazed the world. 'India has not seen the digital revolution in just one creamy layer. It has seen it vertically as well as horizontally all over the country.' She highlighted that while optical fiber had already reached every district in the country, effective power supply had to be coordinated with the states. She also stressed that in the post-Covid-19 period, all states have been spending on social schemes and welfare, but everybody is made to spend on capital expenditure also. 'All states are now understanding the importance of capital expenditure because the multiplier effect is much higher,' she said. The FM said a key lesson from the Covid-19 pandemic is the need for the country to be prepared for future pandemics. 'Institutions will have to be ready for them; not just hospitals or disaster management teams but also schools, colleges, firefighting units.'
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Business Standard
29-05-2025
- Business
- Business Standard
AI-driven industries to propel India to third-largest economy: FM
The industries that will play a key role in propelling India to become the third-largest economy in the world will largely be those that adopt artificial intelligence (AI), Finance Minister Nirmala Sitharaman said on Thursday. Interacting with students at an Institute of Economic Growth event, Sitharaman said, 'They can be any industry. Productivity gains and the efficiencies that you're bringing in because of the adoption of such technology is what is going to define these industries which will rapidly allow India to move to the third position.' India is projected to be the fastest-growing major economy in the world in FY25 and is expected to overtake Japan to become the fourth-largest economy in 2025, according to estimates by the International Monetary Fund. While highlighting how India's productivity has not kept pace with its ambition for rapid growth, Sitharaman said, 'I am not saying there was never an attempt to improve, but trying has not been facilitated with many other changes which could have been adopted. Technology is one of them.' The adoption of technology, she said, could have accelerated productivity gains. She noted that the defining feature of the transformation in some sectors is the adoption of technology, including Web3. Speaking about India's digital public infrastructure, the finance minister said, 'The way in which India's common people have taken to digital financial transactions has amazed the world. India has not seen the digital revolution in just one creamy layer, it has seen it vertically as well as horizontally all over the country.' Sitharaman pointed out that while optical fibre had reached every district in the country, ensuring effective power supply remained a task to be coordinated with the states. She also emphasised that in the post-Covid-19 period, all states have been spending on social schemes and welfare, but they are also now investing in capital expenditure. 'All states are now understanding the importance of capital expenditure because the multiplier effect is much higher,' she said. The finance minister added that a key lesson from the Covid-19 pandemic is the need for the country to be prepared for future pandemics. 'Institutions will have to be ready for them; not just hospitals or disaster management teams but also schools, colleges, firefighting units,' she said.
