India’s Gen Z is facing down the artificial intelligence future

The article draws a parallel between the 18th-century decline of India's textile artisans due to new technology and the current threat AI poses to its modern craftsmanship in business software maintenance. This historical context frames the potential economic upheaval, suggesting that the current shift could significantly impact a sector that is a major contributor to India's exports and employment. The comparison highlights the long-term, systemic nature of technological disruption.

The immediate impact is seen in the shrinking value that coders in Bengaluru and Hyderabad bring to global enterprises, as AI agents become capable of performing tasks previously handled by human programmers. This development complicates Prime Minister Narendra Modi's ambition for India to become a developed economy by 2047, a goal that required substantial per capita income growth even before the widespread adoption of advanced AI coding tools. The challenge is exacerbated by global businesses increasingly seeking to develop their own software, reducing reliance on external maintenance services.

While policymakers are focused on industrial policy and attracting data center investments with incentives, the article notes that such initiatives may create few new jobs. Low-tech assembly, like iPhone manufacturing, offers limited wages, which the former Reserve Bank of India governor Raghuram Rajan suggests are comparable to those of chauffeurs. This indicates a potential misalignment between current policy efforts and the need for higher-value, export-oriented job creation to elevate India into the league of wealthier nations.