Citation:

Sumedha Pandey. "Intervention of Artificial Intelligence in the Indian Economy: A Boon or a Bane" International Research Journal of Economics and Management Studies, Vol. 5, No. 6, pp. 61-76, 2026. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V5I6P106

Abstract:

Artificial intelligence (AI) is the most transformative global technology of the 21st century. To date, it has spread rapidly across five core sectors in India—finance, healthcare, agriculture, manufacturing, and government services—continuously reshaping the structure of India's local economies. The academic community widely agrees that while AI can deliver benefits including efficiency improvements, innovation, and economic growth, it also triggers four core categories of risks: unemployment, inequality, ethical challenges, and threats to data privacy. This study conducts a multidimensional analysis using secondary data from government reports, academic publications, and industry research. It predicts that AI can substantially boost India's productivity and competitiveness and proposes three supporting policies to be implemented: inclusive growth, labor force skills upgrading, and an ethics-oriented framework.

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Keywords:

Artificial Intelligence, Indian Economy, Automation, Economic Growth, Employment, Technology Policy.