Eco Survey suggests AI Economic Council for India: What it is, key details

The Survey stressed that India's artificial intelligence rules must suit national needs, especially the country's large workforce

The Economic Survey 2025–26, tabled in Parliament on Thursday, proposes the establishment of an AI Economic Council to guide the use of artificial intelligence (AI) across the country.

 

The Survey said AI is developing much faster than the laws meant to regulate it. Different countries are addressing this issue in various ways. While the European Union has strict rules, the United States follows largely flexible guidelines.

 

It stressed that India’s AI rules must suit national needs, especially the country’s large workforce. The main aim, the Survey said, is to make sure AI helps people instead of replacing them.

Need for AI Economic Council

The Survey noted that amid the surge in AI usage, policymakers must control where and how it is used. It warned that excessive use of generative AI by students, especially as a replacement for thinking and creativity, can be harmful in the long run.

 

It noted that AI use in universities is rising sharply, with many students relying on AI for thinking tasks. Combined with heavy social media use, this can weaken skills such as reading, critical thinking and analytical writing. Over time, this may worsen mental health, lower productivity and reduce future job prospects.

 

The Survey cited studies by the Massachusetts Institute of Technology (MIT) and Microsoft, which found that over-dependence on AI for writing and creative work reduces thinking ability. It said the AI Economic Council must ensure that Artificial Intelligence does not come at the cost of Human Intelligence.

What is AI Economic Council?

The AI Economic Council will work separately from other AI governance bodies. Its role will go beyond technology and focus on ethical and social concerns linked to AI use in India.

 

The council will act as a coordinating body to ensure that the use of AI moves in step with changes in education and skill training, while keeping in mind limited resources and development priorities.

How will the AI Economic Council function?

According to the Survey, the council will be guided by these key principles:

• Putting people first: AI use must clearly improve human well-being and economic inclusion. Every major AI project should show how it will create social or economic benefits, such as jobs, better productivity or improved public services.
• Protecting jobs: AI policies must reflect India’s labour reality, where many people work in the informal sector and have different skill levels. Before adopting AI, its impact on jobs should be assessed, with plans to manage job losses and help workers transition.
• Phased adoption: AI should be introduced slowly and carefully, depending on how ready institutions, skills, data and legal systems are. The council may decide which AI uses can be adopted immediately, tested first, or delayed.
• Skills and technology together: The council should ensure that skill development is as important as technology adoption. Any AI push should include plans for education reform, retraining and skill certification.
• Clear ethical limits: Strict rules must prevent misuse of AI, including mass surveillance, unfair worker monitoring, discrimination by algorithms and unclear automated decision-making.