Anticipating disruption from Artificial Intelligence (AI) and automation, Karnataka has asked enterprises investing Rs 50 crore to create a minimum of 25 jobs in order to receive incentives under the government’s new industrial policy.
“Due to advancements in Artificial Intelligence as well as industry focus on automation to increase productivity, minimum employment thresholds have been rationalised,” the Industrial Policy 2025-30, which aims to create 20 lakh new jobs, states.
According to the policy document, the minimum investment for a large enterprise must be Rs 50 crore and it must create at least 25 jobs.
Similarly, a mega enterprise with a minimum investment of Rs 300 crore must have 150 jobs. An ultra mega enterprise with a minimum of Rs 1,000 crore should create 500 jobs. Ultra mega projects should also create additional six jobs for every Rs 50 crore.
Under the previous Industrial Policy 2020-25, large enterprises were asked to create 50 jobs for a minimum Rs 50 crore investment.
Meeting the new minimum employment thresholds is necessary for enterprises to avail capital expenditure subsidy or production-linked incentives.
“AI and automation…that’s the reality. AI will play a role everywhere…in the areas of medical equipment, smartphones, chipmaking and so on. Robots will replace human beings,” Industries Minister M B Patil told DH, adding that there were even robot masseuses. Patil, however, added that it was “too early” to speculate how AI would impact jobs.
At the recent Invest Karnataka summit, Google X cofounder Sebastian Thrun uged youngsters to prepare themselves for AI. “Approximately 60% of current jobs may disappear,” Thrun said at the summit, according to a statement. “But far more new jobs will emerge as a result of AI and other technologies.”
Thrun, who led the development of Google’s driverless car, also said that AI’s rise would lead to a shift in job types. “Those who adapt will find new career prospects in fields that are currently emerging,” he said.
The new Industrial Policy also offers incentives to enterprises that employ more women. Enterprises with 50%, 60% and 70% women in workforce will get incentive boosters of 7.5%, 10% and 15%, respectively.
“Such measures are expected to contribute significantly to the state’s social and economic objectives, making it a model for gender inclusiveness in industrial development,” the policy states. Deccan Herald