Bridging inequality in the age of AI: India's path to inclusive devp
India, May 31 -- India's modest rise on the Human Development Index (HDI) -from rank 133 in 2022 to 130 in 2023 - is a signal of resilience in a rapidly changing world dominated by Artificial Intelligence (AI). The 2025 Human Development Report by the United Nations Development Programme (UNDP), titled "A Matter of Choice: People and Possibilities in the Age of AI," recognises both the promise and the peril of this new era. India has improved in areas like life expectancy (now 72 years), expected years of schooling (13), and Gross National Income per capita, which has quadrupled since 1990. However, widening inequality overshadows these gains.
Oxfam India's 2024 report states that the top 1% of Indians control over 40% of the nation's wealth, while the bottom 50% hold just 3%. AI could exacerbate this divide, especially if its benefits remain concentrated among the elite. This is not just a technological challenge - it is a moral and structural one.
India's civilizational wisdom provides guidance. Chanakya (Kautilya), in his Arthashastra, emphasised inclusive governance and equitable distribution of wealth.
The Rig Veda called for collective progress: "Sangachhadhwam samvadadhwam sam vo manamsi janatam" - "Let us move together, let us speak in one voice, let our minds be in harmony." Guru Nanak Dev Ji's 15th-century teachings rejected caste, gender discrimination, and economic inequality. His principles - Naam Japna, Kirat Karni, Vand Chakna -advocated a life of spiritual devotion, honest work and social sharing. Institutions like langar and sangat remain timeless models of inclusive service. This ancient ethos of shared progress has been a foundational pillar of India's moral compass, sadly diluted in the contemporary race for the GDP.
Inspired by this legacy, one of the most sustainable ways to address inequality today is by investing in public universities and colleges.
These institutions serve as the backbone of India's higher education system, catering to over 75% of students - especially in economically challenged states like Bihar, Uttar Pradesh, Rajasthan, Madhya Pradesh and Punjab. Unlike elite private institutions, public universities reach first-generation learners, women from patriarchal societies, Dalit and tribal youth, and students from poor families. For them, education is a path to dignity and social mobility. Despite their critical role, public universities remain underfunded and undervalued. To change this, a performance-based, accountable, and partnership-driven funding model is essential. Support must be linked to measurable outcomes like teaching quality, research productivity, student placement, inclusivity (enrolment from SC/ST /OBC and rural backgrounds), and transparency. Institutions demonstrating progress should be rewarded; others should be supported through structured capacity-building. The goal is to shift from entitlement-based funding to merit- and impact-based support. However, public funding alone will not suffice. The private sector, especially industry, must play a more proactive role in nation-building through meaningful partnerships with public universities.
One practical strategy is to reform the corporate social responsibility (CSR) framework. Though companies are mandated to allocate 2% of net profits to CSR, only a negligible amount reaches higher education - and even less to public universities. Companies should be encouraged - or required -to adopt public universities under their CSR portfolios. This should go beyond token donations to long-term engagements: upgrading labs, co-developing curricula, offering faculty training and student internships, sponsoring research, and funding scholarships for underprivileged but meritorious students. This is not charity, it is investment in human capital. Educated, well-trained graduates will contribute to industry productivity and innovation, generating a virtuous cycle - profits funding education and education fuelling growth. This model is already working in several developed nations.
Germany's dual vocational education system - jointly run by industry and public institutions - has led to one of the world's lowest youth unemployment rates. Finland's strong public education, aligned with social equity, shows how inclusive growth can be achieved through quality public universities. India too has successful examples. Institutions like IITs and IIMs, built on state support and excellence, have delivered immense value to the economy and society. Such partnerships are not alien to Indian culture. In ancient times, centres like Nalanda and Takshashila thrived with community and merchant guild support. Education was a shared responsibility and seen as a societal good. Reviving this tradition in a modern context is both apt and necessary.
To implement this vision, the government could adopt a phased approach. In phase one, pilot the model in 10-15 public universities across diverse regions with industry and government collaboration. In phase two, scale up to all public universities, aligning CSR efforts and establishing a national framework for accountability. In phase three, link funding to graduate outcomes - employment, income and social impact- creating a self-correcting, data-driven education ecosystem.
This transformation will also require cultural and administrative change. University leadership must be trained in strategic planning, industry engagement, and data governance. Faculty should be encouraged to focus on research, innovation and community service. Students need exposure to real-world learning to prepare for 21st-century challenges. At every level, inclusivity and social justice must remain central.
Reducing inequality is not just an economic imperative - it is a moral one. A society that denies opportunity to large sections of its population cannot thrive. Public universities can be powerful instruments for change - if empowered with the right framework of performance, accountability, and partnership. As India navigates the age of AI, we must not allow technology to deepen inequality. Instead, we must build a development model that aligns with both data and dharma. Guru Nanak Dev Ji's message reminds us that true greatness lies in service to the underprivileged: "Garib da mooh, Guru di golak" (The mouth of the poor is the treasury of the Guru)
Our HDI ranking will improve only when inclusive development becomes a true national mission. It is time policymakers, educators, industry, and citizens together turn this moment of promise into a milestone of transformation....
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