The Union Finance Secretary has recently remarked that, Artificial Intelligence can replace quite a bit of work done by accountants and auditors while giving CA S Hariharan memorial lecture organised by the Institute of Chartered Accountants of India.
Quoting the potential of Artificial Intelligence, he remarked “This has a specific implication for the economy, which is, automation of business processes can be much more potent with Artificial Intelligence than it was without AI.”
The Finance Secretary T.V. Somanathan highlighted the potential for increased credit lending within the Indian economy. He emphasised that while credit to the private sector constitutes about 55% of India’s GDP, it surpasses 180% in China. He stressed that reaching the Chinese level is neither healthy nor advisable; however, India’s current level is notably low.
Somanathan advocated for an increase to 100-120% of the GDP, promoting investment and growth. He outlined that sufficient credit could catalyse dormant projects, underscoring the challenge of expanding credit volume without incurring bad debts, commonly referred to as NPAs. This credit expansion would consequently drive demand for skilled accountants.
Moreover, the Union Finance Secretary anticipated a continuous rise in the number of Income tax payers in India in the foreseeable future. He forecasted an annual growth of 6-7% in Income tax payers, creating a heightened demand for proficient accountants.
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