IMPACT OF AUTOMATION ON EMPLOYMENT AND WAGES IN INDIA – AN EMPIRICAL VIEW

Abstract

The impact of automation on employment and wages in India is a critical concern in the context of rapid technological advancement and economic transformation. Automation, driven by innovations in artificial intelligence (AI), robotics, and machine learning, has the potential to enhance productivity and efficiency across various sectors, including manufacturing, agriculture, and services. While these advancements promise economic growth, they also pose significant challenges, particularly regarding job displacement and wage polarization. As industries increasingly adopt automated processes, routine and low-skilled jobs are at risk of being replaced, leading to substantial unemployment. Estimates suggest that millions of jobs in India could be displaced by 2030, with sectors like manufacturing and agriculture bearing the brunt of these changes. This displacement disproportionately affects low-skilled workers, exacerbating income inequality and regional disparities.