India should revisit AI regulatory framework to capitalise on opportunity ahead: Economic Survey 2024-25

The Economic Survey 2024-25 suggested India need to revisit and amend its regulatory frameworks to ensure that the use of artificial intelligence (AI) aligns with societal values, balancing innovation with accountability and transparency.

“Learning from the lessons of the past, capacity building and institution building is the need of the hour for India to capitalise on the opportunity that lies ahead,” the Survey, tabled in the Parliament on Friday, said.

“Structural changes to how we educate our children will be required in addition to safety nets that can shield existing workers from economic and social fallouts of AI,” it added.


As per the Survey, although the impact of AI on labour will be felt across the world, the problem is magnified for India, given its size and its relatively low per capita income.

“The corporate sector has to display a high degree of social responsibility,” it said, suggesting companies have to optimise the introduction of AI over a longer horizon while the state has to resort to taxation of profits generated from the replacement of labour with technology to mobilise those resources.

The Survey said utilising this window of time available during the nascent stages of AI to build robust institutions can ensure that we, as a nation, are well placed to minimise the costs as much as possible.

“This can then help tilt the scale towards the benefits, bringing a balance to the ‘cost-benefit’ aspect in a labour driven, services dependent economy like India,” it said, suggesting the need for a tripartite compact between the government, private sector and academia can ensure that the gains from AI-driven productivity are widely distributed.