AI Poses Challenge To India's Services-Led Growth Model, Manufacturing Push Needed: Morgan Stanley
New Delhi, June 12 -- Artificial intelligence is emerging as a potential challenge to India's traditional services-export-led growth model, increasing the urgency of strengthening the country's manufacturing sector, according to a report by Morgan Stanley. They warned that AI-driven disruption could significantly slow the growth of India's IT services exports, projecting annual growth of 4.4 percent compared with the average growth rate of 9.8 percent recorded over the previous five years, reported Money Control. AI Disruption May Slow Growth In IT Services Exports According to the report, services exports have become a key pillar of the Indian economy, expanding to approximately USD 321 billion, equivalent to 7.9 percent of GDP. The sect...
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