Advent of digital technologies will have an impact on jobs, and up to 45 million jobs can get displaced or transformed by 2025, a report has stated. Productivity gains through digital technologies will help create up to 65 million new jobs during the same timeframe, according to a McKinsey Global Institute report.
“Retraining and redeployment will be essential to help some 10-45 million workers whose jobs could be displaced or transformed,” the report said. It can be noted that the report comes amid tech industry leaders raising question marks over the skillsets of Indian techies and wondering whether they will be helpful in the future.
According to the report, core digital sectors like IT/software and business process management, digital communication and electronics manufacturing can double their GDP contributions to up to US$ 435 billion by 2025.
“All stakeholders will need to respond effectively if India is to achieve its digital potential,” it added. Companies will have to invest in building capabilities, including through partnering with universities, governments will have to invest in digital infrastructure and public data that can be used by organisations, it said.
To capture the gains, we will require more ease in creating, scaling and exiting startups as well as policies to facilitate retraining, it said. Individuals will have to keep abreast of the changes and keep themselves informed on how the digital economy can impact their work, it recommended.
The study said up to US$ 150 billion each of benefits can be accrued in sectors, including agriculture, education, energy, financial services, healthcare, logistics and retail if they embrace digital technologies. It, however, added while domestic businesses are digitising rapidly, it is not an even growth as there are laggards everywhere.