The chairman and CEO of EY India, Rajiv Memani, warned that artificial intelligence (AI) could drastically separate winners and losers in the upcoming years while highlighting poor R&D spending and unequal manufacturing growth as major issues facing Indian industry on Friday.
In order to remain competitive on a global scale, Memani stated that India’s corporate sector needs to prioritize innovation during the News18 Rising Bharat Summit.
Spending on R&D is difficult. The Indian industry must consider how to create a moat around research and development. He highlighted the discrepancy between capital market expansion and investments in R&D, saying that the financialization of the Indian economy has occurred far more quickly than R&D.
Memani pointed out that Indian companies have not yet taken full advantage of the manufacturing opportunities. There are not many Indian businesses entering the industrial sector. In spite of present shortcomings, he suggested that long-term prospects are still bright. “The chance to build up in India, 5-10 years from now with some of the firms the scale they will be obtaining would be significant,” he remarked.
Memani warned that there will be a lot more churn in the future when discussing the effects of AI and structural changes. Many businesses will experience significant upheaval, particularly those in the industrial and services sectors. Some businesses may fail, but others will persevere and prosper, he said.
He reaffirmed the extent of the anticipated impact across industries with regard to the adoption of AI in particular. Many businesses will experience significant upheaval, particularly those in the industrial and services sectors. Some businesses may fail, but others will persevere and prosper, he said.
