More Stories

Informist, Monday, Sept. 15, 2025

 

Please click here to read all liners published on this story

--Sitharaman: AI double-sided sword, need to control it for good 
--Sitharaman: Need to think on AI-driven upskilling programmes 
--Sitharaman: Need norms to ensure AI doesn't hurt demographic dividend 
--Sitharaman:Need to ensure regulation also sprints if AI innovation sprints 
--Sitharaman: Want soft-touch AI regulation, not clampdown approach 
--Sitharaman:Fincl sector AI sandbox to help identify regulatory gaps, issues 
--Finance Minister Sitharaman's comments at a NITI Aayog event
--Minister Vaishnaw: AI Mission working on tackling challenges like deepfake 
--Minister Vaishnaw: Need R&D, talent pipeline to push AI in India 
--Minister Vaishnaw:Need to ensure India front-runner of AI development, use 
--CONTEXT: IT Minister Vaishnaw's comments at a NITI Aayog event 
--Minister Vaishnaw: Need to master telecom, silicon tech to stay ahead 
--CONTEXT: NITI Aayog CEO Subrahmanyam's comments at an event 
--NITI Aayog CEO: Need to be ahead of frontier tech to combat risks to jobs

 

NEW DELHI – Acknowledging the benefits of adopting artificial intelligence, Finance Minister Nirmala Sitharaman Monday said that policy and governance should be one step ahead of the curve, to the extent that government has to ensure that regulation sprints if innovation in the sector is sprinting. Artificial intelligence may be a double-sided sword, Sitharaman said, adding that like any other good things, this also comes with riders.

 

"A good is never in its own all good, it is for us to use it in such a way that it will be deployed for common good," she said at a NITI Aayog event on 'AI for Viksit Bharat. However, she added, that the government's regulatory approach will be of "soft-touch" rather than "clamp-down" to give impetus to the industry that holds immense potential, she said. "I think the Artificial Intelligence is something which we should know how to keep well under our reigns and serve for the common good," she added.

 

And in this endeavour for soft-touch approach, Sitharaman said the Reserve Bank of India's AI Innovation Sandbox will be beneficial. It will help identify what are the regulatory gaps in the system and most importantly, identify whether the government is over-regulating. "We do not want regulation that literally wipes out technology...we want regulation because we want responsible application," the finance minister said. 

 

The RBI had set up an eight-member committee to establish board-approved artificial intelligence policies to ensure safe adoption of AI within the financial sector. In its report released on Aug. 13, the committee outlined 26 recommendations for the responsible and ethical use of AI in the financial sector. The panel recommended formulation of an AI policy to provide necessary regulatory guidance, establishment of shared infrastructure to ease access to data and the development of indigenous financial sector-specific AI models.

 

Besides risks to employment, Sitharaman also said that artificial intelligence can hurt India's demographic dividend if it is not infused into the economy properly. According to her, 80% people who are going to be dislocated for employment without any training on AI, they will find it difficult to locate back and join the workforce. "So, I would push for AI-driven upskilling programmes," she said. NITI Aayog Chief Executive Officer B.V.R. Subrahmanyam added that India will have to be ahead of its time and train the youth to avoid risks to employment from AI.

 

At the event, NITI Aayog launched a report that lays the roadmap for AI adoption for Viksit Bharat. According to it, potential artificial intelligence opportunities can add up to $2 trillion to India's GDP by 2035. Such opportunities can also help raise India's GDP growth to 8% and help achieve a $8.3 trillion GDP by 2035, the report said. 

 

At its current growth rate, India's GDP is projected to reach $6.6 trillion by 2035, it said. "However, under the aspirational 8% growth trajectory outlined in the government's vision for the nation known as Viksit Bharat, India's GDP could increase to $8.3 trillion, representing an incremental $1.7 trillion compared with the current growth path," the report 'AI for Viksit Bharat' said. 

 

It noted that potential AI opportunities for India are presently spread across three levers: accelerating AI adoption across industries to improve productivity and efficiency, potentially bridging 30–35% of the gap, transforming research and development through generative AI, could help India leapfrog into innovation-driven global opportunities, bridging a minimum 20–30% of the gap, and innovation in technology services, strengthening India's reputation as a technology services leader, contributing another 15-20% to the step up. 

 

Information and Broadcasting Minister Ashwini Vaishnaw, who was also present at the event, said the government needs to ensure that India remains front-runner of AI development and its usage. "We will need R&D and a huge talent pipeline to take AI further in India," he said. To boost the sector, India needs to master and adopt telecommunication, semiconductor, and silicon technology, he added. In this regard, the AI Mission will play a big role by tackling multiple challenges like that of deepfake.  End

 

Reported by Priyasmita Dutta

With inputs from Shubham Rana

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.