INDIA LESS VULNERABLE TO AI JOB DISPLACEMENT

Goldman Sachs Group's Chief India economist Santanu Sengupta said Friday that India is better positioned than many nations to weather AI-related employment disruption. The assessment reflects India's economic structure, where large portions of the workforce remain concentrated in sectors less susceptible to automation. Manufacturing, agriculture, and informal economy roles dominate employment, limiting AI's immediate impact. However, the services sector—a growing contributor to India's economy—faces greater vulnerability. Business process outsourcing, customer service, and certain white-collar positions could see efficiency gains from AI adoption, potentially affecting employment in these areas. The finding contrasts with concerns in developed economies, where service-heavy job markets face steeper AI disruption risks. India's demographic profile and labor market composition provide a natural buffer against near-term technological unemployment, though long-term workforce adaptation will remain critical as AI capabilities advance.