AI, Tech Adoption Key To India's Economic Rise: Finance Minister

(MENAFN- KNN India) New Delhi, May 30 (KNN) Finance Minister Nirmala Sitharaman, in a discussion with students at the University of Delhi's Institute of Economic Growth, emphasised that India's journey to becoming the world's third-largest economy will be led by industries that embrace artificial intelligence and advanced technologies.

She dismissed the notion of a divide between“India” and“Bharat” industries, stating that technological adoption, not traditional classifications, will define future growth.

India, currently the fifth-largest economy globally, is expected to surpass Japan by the fiscal year ending March 2026, according to the International Monetary Fund.

Sitharaman pointed out that while India's ambition to grow rapidly is clear, productivity hasn't kept pace. To address this, both the government and private sector are identifying key areas for investment.

“Technology being adopted could have multiplied your productivity faster,” she said, noting drastic changes in sectors driven by digital transformation.

On climate transition, Sitharaman highlighted the rising costs of moving from fossil fuels to green energy. She also criticized the imposition of tariffs by some nations on products deemed“not-so-green,” which burdens developing countries already working toward sustainability.

She stressed the importance of international cooperation and financing for climate action, referring to recommendations made during India's G20 presidency on strengthening multilateral development institutions.

Addressing India's defence capabilities, the minister praised the technological integration across the three military branches during Operation Sindoor.

She noted India's growing self-reliance in defence production, though some imports remain necessary for precision operations.

The session, moderated by NK Singh, Chairman of the 15th Finance Commission, highlighted the need to balance national security with economic growth. Singh called this a“unique moment” for India to shape its global role with both ambition and resilience.

(KNN Bureau)

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