India must act with urgency to harness artificial intelligence (AI) for inclusive growth or risk narrowing its economic options, Chief Economic Advisor V. Anantha Nageswaran warned at the India AI Impact Summit 2026.
"We must act now. The first step begins with a reform of our education and the imparting of our foundational skills, and that is where the path to co-creation and prosperity will be," Nageswaran said, emphasising that educational reform is the cornerstone of India's AI-driven future.
"Need to move precisely, such as strengthening foundation of education, scaling high-quality skill, expanding labour-intensive service sectors, removing the regulatory bottlenecks that hinder the expansion of labour-intensive services," he added.
India can lead AI-powered inclusive growth
The CEA painted an ambitious vision for the country, suggesting India could become "the first large society where human abundance and machine intelligence reinforce each other." However, he stressed this transformation would require immediate and calibrated action across multiple sectors.
Urgency and political will needed
Nageswaran warned that AI progress "will not happen by drift" and called for strong political will and state capacity to drive change. He cautioned that every year of delay would narrow the country's economic and technological options, potentially triggering social and economic instability.
'Team India' approach essential
The Chief Economic Advisor advocated for a collaborative 'Team India' approach involving the government, private sector, academia and policymakers to ensure AI development serves broad-based economic growth rather than causing disruption.
Focus on skills and labour-intensive sectors
Beyond education reform, Nageswaran urged the expansion of labour-intensive service sectors and removal of regulatory bottlenecks. He emphasized the need to strengthen foundational education and scale high-quality skills to prepare the workforce for an AI-integrated economy.
The India AI Summit 2026 is being inaugurated by Prime Minister Modi today, underscoring the government's commitment to positioning India as a global AI leader.
