India urged to foster small businesses and AI laws to manage automation

At the Global Fintech Fest, Infosys Chairman Nandan Nilekani suggested that India can protect its workforce from artificial intelligence disruption by fostering millions of small businesses. Nilekani argued that while large corporations may use AI to increase efficiency and reduce headcount, a broad base of small enterprises could spread employment and create a more resilient, “AI-proof” economy. He noted that digital infrastructure and AI could provide small businesses with capabilities previously reserved for large firms, such as 24/7 automated agents and advanced market analysis.

Separately, legal expert Pavan Duggal has called on the Indian government to establish dedicated legal frameworks for artificial intelligence to safeguard national sovereignty and security. Duggal warned that the rapid advancement toward Artificial General Intelligence (AGI) and superintelligence poses significant risks. He emphasized that as the world’s most populous democracy, India’s regulatory actions could set a benchmark for the Global South, noting that voluntary guidelines may be insufficient without the force of law.