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AI and the Invisible Workforce: The Promise and Peril for India's Informal Women Workers

As India builds its national AI infrastructure, the design choices made today will determine whether the technology empowers or further marginalises the millions of women in the informal economy. A look at the opportunities, the governance challenges, and the path forward.

July 28, 20267 min read

What is the core issue?

The central issue is whether the rapid deployment of Artificial Intelligence in India will serve as a catalyst for inclusive growth or as a new vector for structural inequality, particularly for women in the informal sector. According to a 2018 International Labour Organization (ILO) report, over 90% of working women in India are engaged in informal employment. This vast workforce, concentrated in sectors like agriculture, home-based production, and domestic services, remains largely outside formal economic structures and social safety nets. As AI reshapes value chains, the design of these new systems—the data they are trained on, the languages they support, and the interfaces they employ—will determine if they bridge or widen existing divides, impacting the constitutional guarantee of equality under Article 14.

What is the government's strategy and vision?

The Government of India has articulated a vision of leveraging AI for national development, encapsulated in the goal of 'Viksit Bharat by 2047'. The official strategy is multi-pronged, focusing on building foundational infrastructure and establishing a governance framework. The cornerstone is the IndiaAI Mission, approved in March 2024 with an outlay of ₹10,372 crore to build a robust AI ecosystem. This is complemented by platforms like BHASHINI, which aims to make AI accessible across India's linguistic diversity. While a comprehensive AI law is still under development, the government's approach is guided by principles of fairness, equity, and accountability, as emphasized during the GPAI Summit in December 2023. The stated position, articulated by officials from the Ministry of Electronics and Information Technology (MeitY), is that AI's success will be measured by its ability to deliver productivity gains to those at the base of the economic pyramid.

What does early evidence suggest about AI's impact?

Early evidence from pilot projects indicates that AI tools designed with inclusivity can have a positive impact. A 2024 study of Farmer.Chat, an AI-powered agricultural advisory service, found that 61% of its women users reported an improved quality of life within 45 days. The study also noted their engagement levels were two to three times higher than those of male users. This suggests that when AI tools are relevant, accessible in local languages, and designed considering women's specific constraints, they can drive adoption and positive outcomes. Data from the Periodic Labour Force Survey (PLFS) 2022-23, which reported that 76.9% of rural women are engaged in agriculture, underscores the potential for scaling such gender-responsive agritech solutions.

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