CII delegates told to leverage AI
India has the advantage of competitive manufacturing and talent, which can help the country leverage these large markets of Europe and the United States more effectively, Commerce and Industry Minister Piyush Goyal told Indian business community.
Countries such as Switzerland, the United States and nations in the European Union have much higher per capita incomes and cannot manufacture products at costs lower than India. But he noted that while these economies possess strong technological and industrial capabilities, which can benefit the Indian manufacturers and be competitive in the global markets.
Nine of the Free Trade Agreements (FTAs) signed in the last three-and-a-half years with 38 countries are all with developed economies and will help India attract investments and expand exports. He said these countries complement rather than compete with India and provide access to large global markets with significant import demand.
The Minister said the FTAs are intended to strengthen India’s export capabilities, increase investments and create new opportunities for Indian businesses in global markets. He urged industry to leverage these agreements to expand their international presence and accelerate export growth.
Referring to India’s export performance, he said the country is set to achieve an all-time high export figure of nearly US$863 billion this year.
Addressing the Confederation of Indian Industry (CII) Annual Summit on 12 May in New Delhi, he called on the industry to work with the government to strengthen the India growth story.
The Minister urged industry to leverage artificial intelligence, robotics and quantum computing as force multipliers for growth and competitiveness. He said AI should not be viewed merely as a cost-cutting tool but as an instrument for business expansion, efficiency and market growth.
Goyal called upon industry bodies such as CII to deeply reflect on the transformative potential of artificial intelligence and examine areas where AI can make businesses smarter, more productive and globally competitive.
Goyal advised industry to run dedicated programmes for employees to train them in smarter uses of AI and said companies should use AI to improve productivity, capture larger markets and grow businesses rather than simply reduce manpower. He added that while some sectors may face technological disruption, India has consistently adapted to changing technologies by moving from call centres to BPOs, software services and higher-end business solutions.
Highlighting the rapid growth of Global Capability Centres (GCCs), Goyal said nearly 1,800 GCCs are already operating in India and another 500 are expected in the coming years. He said exports from GCCs are growing by nearly 40-50 per cent annually and currently stand at around US$50 billion, employing nearly two million people directly.
He urged the industry to work towards achieving the target of US$2 trillion exports over the next five to six years. “The target was achievable with annual export growth of around 15 per cent.”
He expressed confidence in the capabilities of Indian industry and said sectors across the economy, including automobiles, steel and startups, have the potential to drive this growth through innovation, competitiveness and expansion into global markets.
He informed CII delegates that energy efficiency measures have helped save nearly US$10 billion annually in energy costs while also contributing to sustainability and environmental protection.
Furthermore, Goyal urged industry to focus on reducing waste, improving productivity and bringing down the import bill in every possible way.
He said investments in public transport infrastructure, including metros and rapid rail systems, along with conscious efforts by industry and citizens, would collectively strengthen the economy. Fiinews.com
