In the Union Budget, Finance Minister Nirmala Sitharaman announced the formation of a high-level standing committee to address the impact of artificial intelligence (AI) and emerging technologies on jobs. During her Budget speech, the Finance Minister proposed the establishment of a High-Powered ‘Education-to-Employment and Enterprise’ Standing Committee, aligned with the vision of a developed India by 2047.
Services sector as a core driver of developed India
The Union Finance Minister stated that the services sector is acting as a core driver for a developed India. To strengthen this role, the proposed committee will focus on aligning education, employment, and enterprise needs with future economic goals.
Role of the high-powered standing committee
During her Budget speech, Sitharaman said the Education-to-Employment and Enterprise Standing Committee will be constituted to:
- Analyse the impact of AI and emerging technologies on jobs
- Assess changing skill requirements in India
- Prioritise sectors that drive growth, employment, and exports
Target to increase India’s global services share
The Finance Minister said India aims to become a global leader in the services sector, with a target of increasing its global services share to 10 per cent by 2047. The committee will work towards identifying key areas that can help achieve this objective.
Focus on skills and emerging technologies
The committee will assess the impact of emerging technologies such as AI on jobs and the skill sets required across sectors. The Finance Minister noted the importance of skill development aligned with AI and emerging technologies to address changes in employment patterns.
Tax holiday for data centres
The Finance Minister has also proposed a tax holiday until 2047 for foreign companies providing cloud services to customers worldwide using Indian data centres. The tax holiday will be extended to eligible entities subject to certain conditions. To avail of the benefit, companies must provide services to Indian customers through an Indian reseller entity.
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