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The Economic Impact of AI as an Autonomous Agent in India

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When AI becomes an agent: Economic implications for India

The emergence of agentic AI signifies a revolutionary shift in artificial intelligence, enabling machines to perform tasks with autonomy alongside, and sometimes surpassing, human capabilities. Built primarily on large language models (LLMs), agentic AIs differentiate themselves by accessing real-time data from APIs and sensors to execute complex workflows, thereby increasing productivity. This innovation poses significant policy challenges, especially concerning its impact on India’s export sectors, particularly in IT and textiles, which are crucial for economic growth. The implications of agentic AI could lead to job displacement and heightened competition, as countries adopting AI more rapidly may gain a competitive edge in international markets. Consequently, India’s export landscape is at risk, with potential job losses in high-paying sectors like IT becoming a serious concern. Policymakers must develop comprehensive strategies to harness the benefits of agentic AI while mitigating workforce disruptions, ensuring that India remains competitive in the global landscape.

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