<\/p>
Artificial intelligence is set to shake up India\u2019s services-led growth model, but fears of a sweeping jobs apocalypse are overstated, former Reserve Bank of India Governor Raghuram Rajan said, urging companies and policymakers to focus on adaptation rather than alarm.\u00a0\u00a0<\/p>
Speaking in an interview with Bloomberg Television<\/em>, Rajan acknowledged that AI poses\u00a0real challenges\u00a0for India\u2019s software exporters and back-office services industry. However, he pushed back against predictions of a large-scale employment crisis, arguing that the \u201cIndian services story can still persist in many other areas outside of software.\u201d\u00a0\u00a0<\/p> Disruption, but not doomsday\u00a0\u00a0<\/strong><\/p> India\u2019s IT sector \u2014 long the backbone of its services-driven growth \u2014 is already feeling early tremors from AI adoption. Automation tools are beginning to reshape routine coding, customer\u00a0support\u00a0and back-office functions, with some firms trimming headcount as they deploy AI systems.\u00a0\u00a0<\/p> A recent note by Citrini Research warning of revenue pressure on Indian IT companies triggered a selloff in technology stocks earlier this week, underscoring investor anxiety around the sector\u2019s AI exposure.\u00a0\u00a0<\/p> But Rajan cautioned against what he described as \u201cscience fiction\u201d scenarios. \u201cLet\u2019s not get overly wound up,\u201d he said, arguing that while frontier technology companies may move quickly, real-world adoption across industries tends to be far slower and uneven.\u00a0\u00a0<\/p> \u201cThe fastest users of technology are the people creating the technology,\u201d Rajan noted. \u201cWhat they don\u2019t see is adoption outside the frontier is much longer.\u201d\u00a0\u00a0<\/p> A gradual transition\u00a0\u00a0<\/strong><\/p> According to Rajan, many global corporations have yet to implement AI at scale, leaving a significant window for Indian firms to reposition themselves. The transition, he suggested, is likely to be gradual rather than abrupt, reducing the probability of sudden, mass displacement.\u00a0\u00a0<\/p> India\u2019s exposure to automation is undeniable. Its position as a global hub for IT outsourcing and business process management makes routine, process-driven roles especially vulnerable. Entry-level white-collar jobs \u2014 once seen as secure pathways into the middle class \u2014 are increasingly at risk from generative AI and advanced automation tools.\u00a0\u00a0<\/p> Yet Rajan believes the same technologies could open new demand streams, particularly in higher-value services,\u00a0engineering\u00a0and digital transformation. Multinational corporations, he pointed out, continue to expand their global capability centres in India, shifting more complex and high-end functions to the country.\u00a0\u00a0<\/p> \u201cThe reason many firms are moving to India is because of its highly skilled service people,\u201d he said, noting that a consultant in India can cost\u00a0roughly one-fifth\u00a0of a comparable consultant in the West. Combined with access to the same AI tools, that pricing advantage helps level the competitive playing field.\u00a0\u00a0<\/p> Reskilling as the central challenge\u00a0\u00a0<\/strong><\/p> For India\u2019s software firms and their workforce, the key will be speed. Rajan stressed that companies and employees will need to \u201cretool really fast\u201d through reskilling and upskilling initiatives. Still, he insisted that this is \u201cnot something they cannot overcome.\u201d\u00a0\u00a0<\/p> He also broadened the lens beyond services. AI-driven robotics and automation are beginning to reshape global manufacturing, potentially altering trade and production patterns. In that context, Rajan argued that India\u2019s policy priorities should tilt toward investing in human capital \u2014 education, training, and research and development \u2014 rather than chasing capital-intensive semiconductor ambitions without achieving\u00a0cutting-edge\u00a0competitiveness.<\/p> <\/div> Raghuram Rajan AI comments, Raghuram Rajan Bloomberg interview, AI impact on Indian IT sector, India services sector AI disruption, AI job losses India, Indian IT stocks selloff AI, Citrini Research India IT note, AI reskilling India software firms, Global capability centres India AI, Raghuram Rajan technology adoption remarks#Dont #wound #science #fiction #Raghuram #Rajan #plays #job #loss #fears1772225125<\/p> ","protected":false},"excerpt":{"rendered":" Artificial intelligence is set to shake up India\u2019s services-led growth model, but fears of a sweeping jobs apocalypse are overstated, former Reserve Bank of India Governor Raghuram Rajan said, urging companies and policymakers to focus on adaptation rather than alarm.\u00a0\u00a0 Speaking in an interview with Bloomberg Television, Rajan acknowledged that AI poses\u00a0real challenges\u00a0for India\u2019s software […]<\/p>\n","protected":false},"author":1,"featured_media":4009,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[13624,13626,13629,13628,458,2015,13633,13630,13625,13627,4349,10119,1418,13634,13622,13623,13631,13635,11184,13632],"class_list":["post-4008","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-content-marketing","tag-ai-impact-on-indian-it-sector","tag-ai-job-losses-india","tag-ai-reskilling-india-software-firms","tag-citrini-research-india-it-note","tag-dont","tag-fears","tag-fiction","tag-global-capability-centres-india-ai","tag-india-services-sector-ai-disruption","tag-indian-it-stocks-selloff-ai","tag-job","tag-loss","tag-plays","tag-raghuram","tag-raghuram-rajan-ai-comments","tag-raghuram-rajan-bloomberg-interview","tag-raghuram-rajan-technology-adoption-remarks","tag-rajan","tag-science","tag-wound"],"acf":[],"_links":{"self":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts\/4008","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4008"}],"version-history":[{"count":0,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts\/4008\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/media\/4009"}],"wp:attachment":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4008"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}