Do you feel the Indian economy is strong enough to deal with implications of a prolonged war in West Asia?

Well, the real question is, how prolonged and how severe will it be. A lot of oil for India and also for countries like Korea, Japan and China, comes from the Strait of Hormuz. We will all be competing for the same oil. So, if the Strait is closed for a longer period of time, oil is going to become really hard to get. I am also worried about our citizens living in those areas. If those economies get more troubled, then the kind of remittance flow that comes from those countries is also going to be interrupted. And that’s another important feed for the economy. Also, over time, not only trade relationships, but also investment relationships, with West Asia have increased considerably. They are putting money into India. So, I think for all these reasons, the longer the war persists, and the deeper it is, the worse it is for India. Right now, I am hoping it’s a short war lasting for a week or so, when probably nothing serious will happen. We also have our own petroleum reserves, and so on, that can be released if need be. Obviously, it is a serious disruption, especially if other oilfields are shut down. Of course, there are other ways of getting oil without going through the Strait of Hormuz, but that will cause a lot of delay. Also, the costs are going to increase and the quantities are going to fall. 

 AI is the buzz now and there are several views on it. What is your view: will it create more jobs or take them away?

I think all technologies do both. They displace people and they also create jobs. I think, almost surely, AI will probably displace a fair amount of jobs. The belief is, it will create fewer jobs than it displaces, which is why all this worry about mass unemployment. I think part of that, not entirely, is, we are able to see the jobs that are lost, but we are typically not able to see the jobs that are being created. And so, over time, I think we will figure out ways to usefully use people. There will be what is called collateral damage. There will be people who cannot really readapt to get the new jobs or who simply call it quits. Every technology does that. Hopefully, this one won’t do too much of that. But I think, at this point, nobody really knows.

You have stressed on the fact that the government must focus on improving primary education  and developing India’s human talent. When it comes to AI, what should be the focus when it comes to education?

Well, first, I think that we need investment in education and improvement in quality across the board. It’s not just primary education; it starts before, with early childcare nutrition and extends beyond primary education right up to our best technical institutions. I think we are under-investing in them and we should remedy that. Yes, the temptation for every government is to build buildings, build roads, build highways, open new factories because those can be inaugurated and you can attach your name to it. Working on long-term health care education — what Amartya Sen called capability building — is harder, is more disguised, but in the longer run, especially in the face of challenges like AI, it is going to be more useful. And this is where I think AI can also help. However, it is never AI alone; you can’t tell kids go use AI. A lot of handholding has to be done by a teacher. It can only be a supportive instrument.