In a keynote address that balanced high-octane optimism with a sober warning, IMF Managing Director Kristalina Georgieva declared that artificial intelligence has the power to lift global growth by 0.8% annually. For India, this boost could be the decisive factor in achieving its “Viksit Bharat” goal of becoming a developed nation by 2047 with a $30 trillion economy.
Georgieva emphasized that the magnitude of growth AI offers is perfectly aligned with India’s development ambitions. She noted that India is uniquely positioned to lead this transition due to its robust Public Digital Infrastructure (PDI) and a youthful, innovative population.
“Based on our research, AI can lift global growth by almost a percentage point. This is the magnitude we see for India, and it would mean that India’s Viksit Bharat goal is achievable.” However, the IMF chief did not mince words regarding the social costs. She compared the impact of AI on the labor market to a “tsunami,” warning that the speed of disruption might outpace policy frameworks.
Approximately 60% of jobs are exposed to AI, primarily because these roles involve complex cognitive tasks that AI can now augment or replace. Exposure stands at 40%, with entry-level and routine jobs being the most vulnerable. Low-Income Countries: Exposure is lower at 26%, but these nations face the risk of a widening “digital divide” as they lack the infrastructure to reap AI’s productivity gains.
