Topic: changes in industrial policy and their effects on industrial growth.
Q5. Evaluate the prospects of artificial intelligence as a driver of economic growth and productivity in India. Discuss the challenges associated with its sustainable and inclusive deployment. Suggest appropriate policy interventions. (15 M)
Difficulty Level: Medium
Reference: IE
Why the question
Artificial Intelligence is increasingly being viewed as a key driver of economic growth, productivity enhancement and technological competitiveness, while also raising concerns regarding sustainability, inclusion and governance.
Key Demand of the question
The question requires evaluating the growth and productivity potential of AI in India, examining the challenges associated with its sustainable and inclusive deployment, and suggesting suitable policy interventions for responsible AI development.
Structure of the Answer:
Introduction
Briefly mention the emergence of AI as a transformative technology of the Fourth Industrial Revolution and its growing importance in India’s development strategy.
Body
- Prospects of AI for economic growth and productivity: Discuss how AI can contribute to innovation, competitiveness, efficiency and economic transformation.
- Challenges in sustainable and inclusive deployment: Examine concerns related to employment, digital divide, privacy, resource consumption and technological dependence.
- Policy interventions for responsible AI development: Suggest measures relating to governance, skilling, infrastructure, sustainability and inclusive adoption.
Conclusion
Conclude by highlighting that India’s AI success will depend not merely on technological advancement but on ensuring that growth remains inclusive, ethical and sustainable.








