India has set a target to become a $5 trillion economy by 2025 but skeptics have raised questions over it given the current slowdown. But as per a report released at IAMAI India Digital Summit today, India can achieve the target by using automation technologies such as, artificial intelligence, natural language processing and machine learning that will drive increased efficiencies and new jobs resulting in economic growth in the next few years.
The study conducted by Automation Anywhere and Ernst and Young (EY), said automation is driving efficiencies for enterprises, resulting in dramatic productivity gains in the back office and enhanced customer experiences in the front office. In fact, the study said India will experience a significant boost to its economy to reach US $5 trillion by as early as 2024.
It must be mentioned that as per IMF estimates, the country's GDP is expected to reach US$4.6 trillion at the current projected growth rates by 2024-25. But with automation across industries, there is a potential to add $365 billion to the Indian economy, to reach the US$5 trillion club by 2024-25.
The study also junks the theory that automation kills jobs. "As more organizations adopt intelligent automation at scale, this will eventually create more high-skilled jobs providing more economic opportunities for everyone," Kamalanand Nithianandan, Partner, Advisory Services, EY India said.
The report said automation is driving intrinsic growth in every sector of the Indian economy and is influencing every activity of the workforce by creating higher skilled jobs, resulting in more opportunities for workers and higher economic output.
As per the study, which was released by former telecom secretary Aruna Sundararajan, banking, insurance and financial services have emerged as key industry adopters of intelligent automation as they experience the benefits of lowering costs of business transactions and providing a differentiated customer experience.
Telecom, retail-consumer packaged goods, oil and gas, logistics and transportation organizations have also increased efforts to automate core business functions, driven by mandates to cut costs and improve customer experiences. According to the research, public sector and government institutions are deploying automation to enable the digital transformation of citizen touchpoints, which will ultimately reduce paperwork and improve the citizen-a key goal in further enhancing economic growth across the country.
Sundararajan said the study gives a clear roadmap on how to achieve the target of $ 5 trillion economy.