25 Feb 2026·Source: The Hindu

4 min

Science & TechnologyEconomySocial IssuesNEWS

Nasscom: AI benefits outweigh negative human, climate impacts

Nasscom says AI job creation outweighs climate, labor concerns.

Nasscom projects India's IT industry revenue to increase by 6% to $300 billion in 2026, even as its president Rajesh Nambiar stated that the positive impact of AI on employment will outweigh the negative human and climate consequences. Nambiar emphasized that AI is generating employment at an unprecedented rate. Nasscom vice-chairperson Srikanth Velamakanni added that the improvements in human conditions resulting from AI outweigh the adverse climate impact. While AI will continue to be a net hirer, the growth rate will be slower.

Nasscom is actively involved in fostering a DeepTech ecosystem in India, uniting startups, investors, enterprises, service providers, government agencies, and academia. The Nasscom Centre of Excellence, a part of the Digital India initiative, serves as a collaborative hub for deep technology innovation, focusing on technologies like IoT, AI, Data Science, and Robotics. Nasscom aims to cultivate 10,000 world-class DeepTech startups in India by 2030.

This development is significant for India as it highlights the potential of AI to drive economic growth and improve human conditions, aligning with the country's focus on digital transformation and technological advancement. This news is relevant for UPSC exams, particularly in the Science and Technology and Economy sections.

Key Facts

Nasscom president Rajesh Nambiar says AI's positives outweigh negative human and climate impacts.

Nasscom vice-chairperson Srikanth Velamakanni says improvement in human conditions outweighs adversarial climate impact.

India's IT industry revenue may improve 6% to $300 billion in calendar year 2026.

AI will continue to be a net hirer, but growth rate of new hiring grew at a slower rate of 2.23%, bringing in 1.33 lakh employees in 2026.

UPSC Exam Angles

GS Paper III (Economy, Science and Technology, Environment)

Impact of AI on employment and economic growth

Government initiatives to promote AI and digital technologies

In Simple Words

AI is becoming more powerful, and experts are debating whether its benefits outweigh the potential harm to people and the environment. Some argue that AI creates many jobs and improves lives, while others worry about job losses and the impact of data centers on the climate.

India Angle

India has a large AI user base, so these issues are especially relevant. For example, while AI could help farmers improve crop yields, it could also displace agricultural workers or increase energy consumption.

For Instance

Think about online shopping. AI recommends products you might like, making shopping easier. But it also uses a lot of energy in data centers and could potentially replace jobs in retail.

This affects everyone because AI is increasingly part of daily life. It's important to consider the long-term effects and ensure AI is used responsibly for the benefit of all.

AI's rise demands a balanced approach: maximize benefits, minimize harm.

Nasscom president Rajesh Nambiar stated that the positive outcomes of AI on employment will outweigh the adverse human and climate impact. He highlighted that AI is creating employment at an unprecedented scale. Nasscom vice-chairperson Srikanth Velamakanni added that the improvement in human conditions as an outcome of AI outweighed the adversarial climate impact.

Nasscom projects India's IT industry revenue to improve 6% to $300 billion in 2026. AI will continue to be a net hirer, but at a slower growth rate.

Expert Analysis

The discussion around AI's impact on employment and the environment requires understanding several key concepts. The first is Artificial Intelligence (AI) itself, which refers to the simulation of human intelligence processes by machines, especially computer systems. These processes include learning, reasoning, and self-correction. AI's application in various sectors is projected to boost India's IT industry revenue by 6% to $300 billion in 2026, according to Nasscom.

Another crucial concept is the DeepTech Ecosystem. This refers to a network of startups, investors, enterprises, service providers, government agencies, and academia focused on developing and deploying advanced technologies like AI, IoT, and robotics. Nasscom is actively fostering this ecosystem in India, aiming to cultivate 10,000 DeepTech startups by 2030. The Nasscom Centre of Excellence plays a pivotal role in this ecosystem by serving as a collaborative hub for innovation and development.

Finally, the concept of Net Hirer is relevant in the context of AI's impact on employment. While AI is expected to create new job opportunities, it may also displace existing ones. The projection that AI will continue to be a net hirer, albeit at a slower growth rate, suggests a complex interplay between job creation and job displacement. Understanding these dynamics is crucial for policymakers and businesses to effectively manage the transition to an AI-driven economy.

For UPSC aspirants, it's important to understand the potential of AI to drive economic growth and improve human conditions, as well as the challenges associated with its deployment. Questions may arise in both Prelims and Mains exams related to the applications of AI, the development of the DeepTech ecosystem in India, and the impact of AI on employment and the environment. These topics are relevant for GS Paper III (Economy, Science and Technology, Environment).

Visual Insights

Key Statistics from Nasscom Report

Highlights from Nasscom's projections for India's IT industry and AI's impact.

India's IT Industry Revenue: $300 Billion
IT Industry Revenue Growth: 6%

More Information

Background

The rise of Artificial Intelligence (AI) and its integration into various sectors of the Indian economy is built upon decades of technological advancements and policy initiatives. The Indian IT industry has been a key driver of economic growth, contributing significantly to the country's GDP and employment. Nasscom, as the premier trade association for the Indian IT BPM industry, has played a crucial role in advocating for policies that support innovation and technological advancement. The Digital India initiative, launched by the Government of India, has further accelerated the adoption of digital technologies, including AI, across various sectors. This initiative aims to transform India into a digitally empowered society and knowledge economy. The establishment of the Nasscom Centre of Excellence is a direct outcome of this initiative, aimed at fostering innovation and developing cutting-edge technologies. The focus on creating a robust DeepTech Ecosystem is also aligned with the government's broader vision of promoting innovation and entrepreneurship in the country. This ecosystem aims to bring together various stakeholders, including startups, investors, and academia, to collaborate and develop innovative solutions to address real-world problems.

Latest Developments

In recent years, there has been a growing emphasis on responsible AI and ethical considerations in the development and deployment of AI technologies. The establishment of the Nasscom Responsible AI Hub reflects this growing awareness and the need for a framework to guide the development and use of AI in a responsible manner.

The Indian government has also been actively promoting the adoption of AI through various initiatives and policies. The Ministry of Electronics and Information Technology (MeitY) has launched several programs to support AI research and development, skill development, and the deployment of AI solutions in various sectors.

Looking ahead, the focus will likely be on scaling up AI adoption across various sectors, addressing the challenges related to data privacy and security, and ensuring that AI benefits all sections of society. Nasscom's goal of cultivating 10,000 world-class DeepTech startups by 2030 is a significant step in this direction.

Frequently Asked Questions

1. Nasscom says AI job creation outweighs climate and labor concerns. How can this be critically examined, especially considering the environmental impact of AI?

To critically examine Nasscom's statement, consider these points: * Job Creation vs. Job Displacement: While AI creates new jobs, it also automates existing ones, potentially leading to displacement in certain sectors. The net effect on employment needs careful analysis. * Environmental Impact: AI development and deployment require significant energy consumption, contributing to carbon emissions and climate change. The claim that improvements in human conditions outweigh this impact needs to be substantiated with data. * Ethical Considerations: AI systems can perpetuate biases present in the data they are trained on, leading to unfair or discriminatory outcomes. Addressing these ethical concerns is crucial for responsible AI development. * Long-Term Sustainability: The long-term sustainability of AI-driven growth needs to be assessed, considering both environmental and social factors. A balanced approach that prioritizes both innovation and sustainability is essential.

•Job Creation vs. Job Displacement
•Environmental Impact
•Ethical Considerations
•Long-Term Sustainability

2. What specific data point from this news is most likely to be tested in UPSC Prelims, and what would be a good distractor option?

The most testable fact is likely the projected growth of India's IT industry revenue. * Testable fact: India's IT industry revenue is projected to increase by 6% to $300 billion in 2026. * Likely distractor: A similar-sounding but incorrect growth percentage (e.g., 8%) or a different year (e.g., 2025) or a different amount (e.g. $400 billion). Examiners often play with numbers and dates. * Exam tip: Pay close attention to specific numbers and years mentioned in reports and economic surveys. Create flashcards to memorize these figures.

Exam Tip

Pay close attention to specific numbers and years mentioned in reports and economic surveys. Create flashcards to memorize these figures.

3. How does Nasscom's emphasis on AI job creation align with or contradict the global discourse on AI and employment?

Nasscom's emphasis aligns with the perspective that AI will be a net job creator, although the rate of growth may be slower. This perspective is debated globally. Some argue that AI will primarily displace workers, especially in routine-based jobs, leading to increased unemployment and inequality. Others believe that AI will create new job categories and augment human capabilities, leading to increased productivity and economic growth. Nasscom's view is more optimistic, but it acknowledges that the growth rate of new hiring will be slower.

4. What is the 'DeepTech Ecosystem' that Nasscom is fostering, and why is it important for India?

The DeepTech Ecosystem fostered by Nasscom refers to a network connecting startups, investors, enterprises, service providers, government agencies, and academia to promote innovation in deep technologies. DeepTech typically involves significant R&D and aims to solve complex problems. It is important for India because: * Economic Growth: DeepTech can drive innovation and create high-value jobs, contributing to economic growth. * Technological Advancement: It fosters the development of cutting-edge technologies, enhancing India's competitiveness. * Solving Societal Challenges: DeepTech can provide solutions to pressing issues in areas like healthcare, agriculture, and climate change. * Strategic Autonomy: Developing indigenous DeepTech capabilities reduces reliance on foreign technologies.

•Economic Growth
•Technological Advancement
•Solving Societal Challenges
•Strategic Autonomy

5. In which GS Paper of UPSC Mains might a question related to this news appear, and what specific angle should I prepare?

A question related to this news could appear in GS Paper III (Economy, Science & Technology, Environment). Prepare the following angles: * Impact of AI on the Indian Economy: Analyze the potential benefits and risks of AI for various sectors of the Indian economy, including job creation, productivity, and competitiveness. * Ethical and Social Implications of AI: Discuss the ethical considerations surrounding AI development and deployment, such as bias, privacy, and accountability. * Environmental Impact of AI: Evaluate the energy consumption and carbon emissions associated with AI and explore strategies for sustainable AI development. * Government Initiatives and Policies: Be aware of government programs and policies aimed at promoting AI adoption and innovation in India.

•Impact of AI on the Indian Economy
•Ethical and Social Implications of AI
•Environmental Impact of AI
•Government Initiatives and Policies

6. How does the Digital India initiative relate to Nasscom's efforts in fostering a DeepTech ecosystem?

The Digital India initiative and Nasscom's efforts are closely related and mutually reinforcing. The Digital India initiative aims to transform India into a digitally empowered society and knowledge economy. Nasscom's efforts in fostering a DeepTech ecosystem directly support this goal by: * Promoting Innovation: The DeepTech ecosystem encourages the development of innovative digital solutions. * Creating a Skilled Workforce: It supports the creation of a skilled workforce capable of developing and deploying digital technologies. * Attracting Investment: It attracts investment in the digital sector, contributing to economic growth. * Enhancing Digital Infrastructure: The development and deployment of DeepTech solutions contribute to the enhancement of India's digital infrastructure.

•Promoting Innovation
•Creating a Skilled Workforce
•Attracting Investment
•Enhancing Digital Infrastructure

7. What is the significance of the Nasscom Centre of Excellence, and how does it contribute to the 'Digital India' initiative?

The Nasscom Centre of Excellence is a collaborative platform that unites startups, investors, enterprises, service providers, government agencies, and academia to foster innovation in DeepTech. As a part of the Digital India initiative, it contributes by: * Providing a Hub for Innovation: It offers a space for collaboration and experimentation, accelerating the development of new technologies. * Supporting Startups: It provides startups with access to resources, mentorship, and funding opportunities. * Facilitating Knowledge Sharing: It promotes the exchange of knowledge and best practices among stakeholders. * Driving Digital Transformation: By fostering innovation in DeepTech, it drives digital transformation across various sectors of the Indian economy.

•Providing a Hub for Innovation
•Supporting Startups
•Facilitating Knowledge Sharing
•Driving Digital Transformation

Practice Questions (MCQs)

1. Consider the following statements regarding the Nasscom Centre of Excellence: 1. It is a collaborative hub for deep technology innovation. 2. It focuses on technologies like IoT, AI, and Data Science. 3. It is a joint initiative of Nasscom and the Ministry of Culture. Which of the statements given above is/are correct?

A.1 and 2 only
B.2 and 3 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: A

Statement 1 is CORRECT: The Nasscom Centre of Excellence is indeed a collaborative hub for deep technology innovation. Statement 2 is CORRECT: It focuses on technologies like IoT, AI, and Data Science, among others. Statement 3 is INCORRECT: It is part of the Digital India initiative, not a joint initiative with the Ministry of Culture.

2. In the context of the Indian IT industry, consider the following statements: 1. Nasscom projects the industry's revenue to reach $300 billion in 2026. 2. AI is expected to be a net job creator in the IT sector. Which of the statements given above is/are correct?

A.1 only
B.2 only
C.Both 1 and 2
D.Neither 1 nor 2

Show Answer

Answer: C

Statement 1 is CORRECT: Nasscom projects India's IT industry revenue to increase by 6% to $300 billion in 2026. Statement 2 is CORRECT: AI is expected to be a net hirer, meaning it will create more jobs than it displaces, although the growth rate may be slower.

3. Which of the following best describes the term 'DeepTech' as it relates to the Indian technology ecosystem? A) IT services focused on customer support and outsourcing B) Technologies based on significant scientific or engineering challenges C) E-commerce platforms connecting rural artisans with urban markets D) Mobile applications for entertainment and social networking

A.IT services focused on customer support and outsourcing
B.Technologies based on significant scientific or engineering challenges
C.E-commerce platforms connecting rural artisans with urban markets
D.Mobile applications for entertainment and social networking

Show Answer

Answer: B

DeepTech refers to technologies rooted in significant scientific or engineering advances. These technologies often require substantial R&D and can address complex global challenges.