Incorporation of automation and AI is the only way that India (and other countries) can be competitive in today's world, but that also means major job losses.
Huge labor class that is unemployed due to lack of skills and job loss caused by automation and AI will not be advantageous but rather problematic. Government will have to give them free stipends just to prevent them from revolting.
We've seen this before already, in early Rome with the plebs, and how it ended with the crippling of the government due to constant revolting and free handouts.
So, where is automation in India? It doesn't exist. Like most countries, it cannot compete much against those countries who've already adopted it far earlier.
The problem with India incorporating AI and automation is that India has such a large and cheap labor market, because of their large population, that it would be better to exploit the cheap labor force than to invest in expensive AI and automation technologies that also require India to have skilled technicians and engineers to operate and maintain them. In addition, since most of the higher-end skilled laborers prefer to emigrate from India to the West to find better pay for their services and skills, it will be very difficult for India to transition to these new technologies, even if they wanted to. Not to mention, India does not have the established infrastructure to support these transitions. Moreover, China has outlined in the next five-year plan that they will focus on high-quality development because the Chinese leadership recognizes that China will face, in the coming years, a shift in demographics and, therefore, developing AI and automation technologies to replace the labor shortages, all while making manufacturing and future services more inexpensive, will also put tremendous pressure on India's cheap labor force market--who will build factories in India and employ unskilled Indians with a higher over head labor cost than to build and manufacture in China, if China can produce more efficiently, and more inexpensive with AI and automation than to employ indian laborers.
I think India going into the 21st century will be very challenging for them to modernize and grow at a similar pace that China, under the CPC leadership, has done in the past 30 years. India has too much unmanaged corruption, and is politically and ideologically too diversified--it has no unified national strategies or planning--not to mention, their national cultural ills are also barriers to their own progress. Sure, the EU and Ursula von der Leyen can claim to have struck a great strategic deal with India, but the EU failed to recognize, or does not want to recognize that India may have a large population, but the overall market is small because the majority of the population of India's per capita, according to the IMF is only about $2,800. How many people will be able to afford over-priced European goods in India?