Automation And Employment An Economic Analysis

Abstract

newlineThis research critiques automation and employment in Indian industries, specifically highlighting the differences between MSMEs and large-scale industries. Technological advancements including the Use of Artificial Intelligence (AI), the Internet of Things (IoT), and robotics, have scaled up employment patterns, economic performance, and skill demands in many fields. This thesis aims to review the literature related to automation with a special reference to industries in India while emphasizing that MSMEs are lagging compared to large firms in terms of the ability to invest and implement advanced automation technologies. newlineThis thesis compares the relationship between automation and employment by highlighting the fact that while automation promotes labor productivity, it causes worry over employment security. Consideration and evaluation of critical success factors and inhibitors in the adoption of automation including cost aspects, technical feasibility, scarcity of skills, support in the form of government policy, research and development efforts, and skills development initiatives are discussed. This thesis finds out some of the possible barriers and enablers of AI and Automation adoption by MSMEs based on primary survey of firms. newlinePolicy recommendations emphasize cooperation in achieving sustainable, but stable technological development that would allow achieving the GDP goal, but not to allow the unemployment level to drop too low. These are that targeted measures should be employed to promote the adoption of automation by MSMEs, develop the workforce to the qualification that the country needs, and policies that should fit into the general Indian economy. The research therefore brings out the idea that the use of automation leads to challenges such as job displacement, but if implemented effectively it brings about enhancement of higher-skilled employment and increased productivity. The insights derived here should be useful to policymakers and other relevant players in the automation network field and its socio- economic relationships. newline