Automation and the Future of Employment: Implications for India

Abstract

This article reviews the international evidence on the impact of automation on employment and interprets the Indian experience in light of such evidence. It argues that the apocalyptic notion that one faces large-scale technological unemployment either in India or globally is exaggerated. On the other hand, the romantic notion that new technology–especially in the form of on-line work–will create a new era of prosperity in India driven by digitally-enabled micro-entrepreneurs is unlikely to materialize. This does not mean that new employment opportunities created by digital platforms should be shunned. They should be carefully nurtured by novel regulatory frameworks that seek to improve wages and working conditions for the growing community of online workers in India. This should be complemented by adequate investments in digital infrastructure.