{"id":347753,"date":"2025-10-10T18:48:06","date_gmt":"2025-10-10T13:18:06","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=347753"},"modified":"2025-10-12T10:29:34","modified_gmt":"2025-10-12T04:59:34","slug":"ai-for-inclusive-societal-development","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/ai-for-inclusive-societal-development\/","title":{"rendered":"AI for Inclusive Societal Development"},"content":{"rendered":"

UPSC Syllabus Topic:<\/strong> GS Paper 3 -growth and development <\/strong><\/p>\n

Introduction<\/strong><\/h2>\n

India\u2019s growth cannot be inclusive if 490 million<\/strong> informal workers stay outside formal protections, skills, and productivity gains. AI and frontier technologies can help, but change will not happen by itself. Human intent, coordinated investments, and a supportive ecosystem must come together so technology becomes accessible, affordable, and truly useful at the margins. NITI Aayog\u2019s<\/strong> study AI for Inclusive Societal Development<\/em> (with Deloitte) centres this urgency and proposes a mission-mode roadmap. Without deliberate action, average informal worker incomes could stagnate near $6,000<\/strong> by 2047\u2014well below the $14,500<\/strong> benchmark needed for high-income aspirations. AI for Inclusive Societal Development.<\/strong><\/p>\n

\"AI<\/p>\n

Current State of Informal Workers in India<\/strong><\/h2>\n
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  1. India\u2019s informal trade workforce is about 490 million<\/strong> and remains largely outside core economic gains.<\/li>\n<\/ol>\n

    2. Around 90%<\/strong> of India\u2019s labour force works in the informal sector, spanning construction, agriculture, logistics, retail, and artisanal manufacturing.<\/p>\n

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    1. Average productivity of informal workers is ~US$5\/hour<\/strong>, roughly half the overall average US$11\/hour<\/strong>.<\/li>\n
    2. Women\u2019s participation in the workforce sits at 37 percen<\/strong>t, compared with a global average of 47 percent.<\/strong><\/li>\n
    3. India\u2019s informal sector contributes around 45 percent of the GDP ,<\/strong> playing a critical role in the economy.<\/li>\n
    4. Sectoral spread : <\/strong>Informal work spans agriculture (46\u201348%), construction (15\u201317%), civic\/health services (8\u201310%), retail\/food (6\u20138%), manufacturing (4\u20136%), artisans (2\u20134%), logistics (3\u20135%), and others (7\u201310%).<\/li>\n<\/ol>\n

      Challenges Faced by Informal Workers<\/strong><\/h2>\n

      Recurring issues consolidate into five themes<\/strong>: financial fragility<\/strong>, market access gaps<\/strong>, skilling and adoption problems<\/strong>, social protection and occupational safety deficits<\/strong>, and productivity gaps<\/strong>..<\/strong><\/p>\n

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      1. Financial fragility:<\/strong> Informal workers face irregular, delayed wages and volatile earnings. Limited savings buffers and unverifiable income histories block access to formal credit, insurance, and emergency finance, deepening vulnerability to illness and demand shocks.<\/li>\n
      2. Market access:<\/strong><\/li>\n<\/ol>\n
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        • Workflows depend on intermediaries and word-of-mouth networks, not reliably predictable demand pipelines. Weak discovery on inclusive platforms limits steady orders.<\/li>\n
        • Migrants lack portable proofs and job-matching, inviting exploitation and downtime between gigs. Opacity keeps prices low and further discourages investment.<\/li>\n<\/ul>\n
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          1. Skilling and adoption:<\/strong><\/li>\n<\/ol>\n
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            • Training remains fragmented, generic, and disconnected from real jobs. Digital tools are rarely vernacular, adaptive, or offline-friendly, so last-mile uptake and learning outcomes stay limited.<\/li>\n
            • Workers cannot easily earn portable credentials that prove competence, making progression, apprenticeships, and credit for skills difficult.<\/li>\n<\/ul>\n
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              1. Social protection and safety:<\/strong><\/li>\n<\/ol>\n