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Former Reserve Bank of India (RBI) Governor Raghuram Rajan warned that artificial intelligence (AI) will significantly disrupt India’s services sector, particularly in software and IT-driven industries. He emphasized the urgent need for Indian firms and workers to adapt quickly through reskilling and technological retooling. While AI poses challenges, Rajan argued it will not derail the sector but instead create opportunities for growth if managed effectively. His remarks highlight the global shift toward automation and its implications for labor markets in emerging economies like India. Investors are now assessing how AI adoption might reshape India’s export-driven services industry and its long-term economic competitiveness.
