In Brief:
- +0.4% annual growth over 10 years.
- 42–48% augmented, 8–12% at risk, 9–17% tasks automated.
- Routine automation pushes workers to higher-value roles.
- High impact on knowledge industries; low on physical labor.
- Massive investment in data, compute, power, and water.
According to a Goldman Sachs report, Generative AI is projected to boost India's annual labour productivity growth by around 0.4 percentage points over the next decade (ranging from 0.1 to 0.8 points depending on adoption complexity).
The technology will primarily complement rather than replace human workers, with an estimated 42–48% of non-agricultural employment augmented by AI, 8–12% facing substitution risk, and 9–17% of tasks automated. This shift will allow workers to transition into higher-value analytical, supervisory, and client-facing roles.
Knowledge-intensive sectors like healthcare, education, media, financial services, and Global Capability Centres (GCCs) stand to gain the most, while physical-labor industries like manufacturing and construction will see modest gains, provided India makes substantial investments in digital infrastructure, computing power, electricity, and water.
