‘Quality institutions, right regulatory framework will ensure AI soft landing’

FPJ News Service Mumbai

Law firm Shardul Amarchand Mangaldas & Company on Friday said, building quality institutions and an appropriate regulatory framework will ensure soft landing for AI revolution.

Reacting to the Economic Survey, Sanjiv Malhotra, Senior Advisor, Shardul Amarchand Mangaldas & Company said the Economic Survey 2025 not only takes stock of the state of the Indian economy for FY 25 and FY 26 but also the opportunities and threats in a longer team. 

The chapter on “Labour in the AI Era” is very interesting. It identifies capacity building and institution building as the “need of the hour” and thereby requiring Government, private sector and academia to work closely. The survey also identifies the need for a proper regulatory framework to ensure that AI revolution has a positive social impact.  

Rudra Kumar Pandey, Partner said: “To reinforce India as an attractive FDI destination, Indian government should focus on bolstering the research and development (R&D) sector by way of increased budget allocation, tax incentives and policy reforms such as PLI which will provide impetus to advanced manufacturing, innovation and will create value addition across all sectors.” 

“The Indian government should also aim at liberalising FDI regime, by allowing 100% FDI in R&D segment across sectors. It is key to note that India’s budgetary allocation in R&D is lower compared to countries such as USA, China and South Korea etc.

In order to align India’s goals towards becoming the largest manufacturing hub, it needs to invest its resources in enriching and imparting value to the manufacturing sector through the R&D.” Additionally, the Indian government should also focus on expediting the development and expansion of industrial parks.