Role of Technology in Widening Income Gaps in India

Abstract: Technology, mainly digital infrastructure, automation, and artificial intelligence, have greatly enhanced the quality of life and economic prosperity. Additionally, it adds to the wealth divide as highly skilled workers take advantage of technological advances. In contrast, those with lower skills lose their employment opportunities and have their incomes stagnant. By 2030, millions of individuals may have to shift jobs due to automation. The digital gap, defined as uneven access to technology that restricts opportunities to disadvantaged populations, further exacerbates this financial gap. Despite the fact that 67.5% of people worldwide have access to the Internet, there are still large disparities in less-developed areas. Addressing these disparities requires policies to promote inclusion in the digital economy and equitable access to technology. An integrated approach to technology growth is essential to ensure broad economic advantages and lessen social inequities in the digital era. Keywords: Technology, Artificial Intelligence, Digital Divide, Income Gap JEL Classification Number: O33, O38, J24, L86