It can be stated that Artificial Intelligence (AI) is going to bring a paradigm shift to the Indian economy. It has the potential to enhance the productivity of various industries such as manufacturing, healthcare, and finance, among others, by the automated performance of repetitive tasks. This wilRead more
It can be stated that Artificial Intelligence (AI) is going to bring a paradigm shift to the Indian economy. It has the potential to enhance the productivity of various industries such as manufacturing, healthcare, and finance, among others, by the automated performance of repetitive tasks. This will achieve cost efficiencies and operational effectiveness leading to enhanced economic growth. Very large sets of data can also be processed through analysis to provide AIe a data driven approach which makes it possible to develop effectiveness without having to rely on the data that act ic.
Yet, growing dependency on AI technologies and applications also has its disadvantages. One of these is the ‘jobless society problem’ as people will not have jobs due to mechanization processes in some industries carried out by machines. Another challenge arises from gender inequality which arises from UAs, as these technologies can equally enhance the current socio-economic differences in society. Gender bias within the operational processes and the AI tools is worrisome as it will lead to division due to fairness in processes among people. Issues with AI systems come down to also the issue of how secure and private the users especially those with sensitive information will be.
To maximise the benefits while reducing the negative implications of AI, a strong regulatory approach is needed to support innovative yet ethical practices in India. Preparing the current labour for the inevitable changes in work processes in the next era will require spending the next few years on AI training and skill acquisition. The most important factor in creating best practices for AI is the cooperation of government, business, and educational structures and their joint involvement in AI. Solutions to the above observed problems will allow India to become a key player in the worldwide movement of artificial intelligence.
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Rising inflation directly doesn't lead to increase in india's GDP, Rather it leads too increase in nominal GDP of the country which is calculated at current year prices of final goods and services, that neans inflation leads to increase in nominal GDP even if the productivity of the country is stagnRead more
Rising inflation directly doesn’t lead to increase in india’s GDP,
Rather it leads too increase in nominal GDP of the country which is calculated at current year prices of final goods and services, that neans inflation leads to increase in nominal GDP even if the productivity of the country is stagnent
Which makes Nominal GDP of a country as an illusionary indicator of growth in an economy while real indicator is increase in Real GDP which is calculated at base year prices (unaffected by inflation)
Infact sometimes Increase in Nominal GDP of a country results in negetive growth in following ways
1. Increase in cost of production
As a result of increase in general price levels producers would face increase in cost of production, This leads to lower profit margins which makes the producers difficult to survive
2 Lower consumer spending in long term
Rise in general price levels leads to decrease in purchasing power of consumer if income doesn’t increase proportionately, as a result consumer tends to reduce the consumption
3. Rise in interest rates
To curb the inflation RBI mmay increase the interest rates, so that it makes costly to consumer to borrow and it tends to lower the consumer spending
4. Economic unstability
Inflation leads to uncertainty in economy which makes it difficult to make decisions for consumers as well as producers which results in. Economic unstability
GOVERNMENT can take necessary steps to curb the inflation through fiscal policy so as to reduce uncertainty in market by
• Increasing taxes on income to reduce the purchasing power of consumers
• decresing govt spending or investments
• borrowing more from public to reduce the money supply in markets
Through monitery policy by
• increase in repo rates or reverse repo rates
• controlling open market operations
• increasing interest rates etc
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