Nandan Nilekani suggests that India can unlock a decade of productivity gains by prioritising practical AI applications in sectors like healthcare and agriculture, leveraging existing digital systems for inclusive growth.
Nandan Nilekani believes India could unlock a decade of stronger productivity gains if it concentrates on practical uses of artificial intelligence rather than trying to dominate every layer of the technology stack. Speaking at the India Policy Forum in New Delhi, the Infosys co-founder argued that India’s real advantage lies in applying AI to everyday problems in sectors such as healthcare, education, agriculture and financial services.
His comments reflect a broader argument he has made elsewhere this year: that the bigger challenge for many businesses is not the lack of AI capability but the gap between available tools and effective deployment. Moneycontrol reported that Nilekani has described this as an implementation problem, with firms struggling to fit AI into older systems, governance structures and operating processes. He has also said AI should increase demand for human capability rather than diminish it.
The India Policy Forum, hosted by the National Council of Applied Economic Research in New Delhi, has increasingly focused on digitalisation, development and employment. Against that backdrop, Nilekani’s remarks pointed to a distinctly Indian route to AI adoption: using existing digital public infrastructure, including Aadhaar and UPI, to bring new services to large numbers of people. That approach, he suggested, could make India a global leader in applied AI even if it does not lead in chipmaking or large foundation models.
Nilekani also warned that the labour market effects of AI may not be evenly spread. According to his remarks at the forum, large companies with more standardised roles could shed jobs as routine tasks are automated, while smaller businesses may become a bigger source of employment. That view echoes comments he has made at other industry events, where he has said uniquely human traits such as creativity, empathy and leadership will remain valuable even as machine capabilities improve.
The broader message is one of selective ambition. India, in Nilekani’s telling, does not need to win every part of the AI race to benefit from it. It needs stronger skills, better access and reliable systems, alongside a focus on diffusion: getting useful technology into daily use at scale. If that happens, he believes AI could become less a story of disruption than one of wider inclusion and higher productivity.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
