Goldman Sachs: India AI Unemployment Risk Low, Productivity Up 0.4%

Goldman Sachs asserts India's large manual labor base shields against mass AI unemployment. Service sector faces impact, while orderly adoption may boost productivity by 0.4 percentage points over the next decade.

Woofun AI reports that Goldman Sachs' chief India economist Santanu Sangupta stated large-scale unemployment in India due to artificial intelligence is unlikely. He noted that AI's impact will be relatively limited compared to other nations, primarily because a vast portion of the workforce performs mechanical or physical tasks. Sangupta highlighted that construction and retail, employing roughly 40% of workers, remain largely unaffected, whereas the service sector may see changes. The bank estimates that orderly AI implementation could raise overall productivity by 0.4 percentage points over the next decade.