Economic Survey Warns AI Risks Threaten India's IT Job Engine, Cites 2008 Crisis Severity
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Storyboard•30-01-2026, 12:01
Economic Survey Warns AI Risks Threaten India's IT Job Engine, Cites 2008 Crisis Severity
- •The Economic Survey 2025–26 warns of a low-probability (10-20%) but high-impact global AI scenario, potentially worse than the 2008 financial crisis.
- •This scenario, driven by technological overreach, geopolitical escalation, and financial stress, poses a direct threat to India’s IT-led white-collar employment model.
- •Vulnerabilities are flagged in the AI-heavy infrastructure sector, which relies on long-duration capital, narrow customer bases, and aggressive timelines.
- •The Survey notes a structural break in employment gains in the US Professional, Business and Information Services sector post-December 2022, coinciding with generative AI's mainstream entry.
- •India's competitive advantage in low-cost IT services is eroding as AI performs functions faster and cheaper; an AI Economic Council is proposed to guide responsible adoption and safeguard jobs.
Why It Matters: Economic Survey warns AI risks could severely impact India's IT job market, potentially mirroring the 2008 crisis.
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