unlocking new growth frontiers in the digital age 1 i. introduction this year ’ s nobel prize in physics celebrated the role of artificial intelligence ( ai ) in revolutionising the way we work and live. it is widely believed that ai and robotics will usher in a new wave of secular innovation, much like past breakthroughs in steam power and personal computers. 2 silently, new technologies are offering a way out of the cross currents of diverging macroeconomic and policy pathways, geopolitical tensions, geoeconomic fragmentation and climate change in which the global economy is transfixed. accordingly, these technologies are heralding a brighter future, arguably holding the key for many emerging and developing economies to escape the middle - income trap. 3 it is estimated that generative ai itself could increase global gdp by $ 7 - 10 trillion over the next three years. 4 large language models are estimated to increase the productivity levels of workers by 8 to 36 per cent. 5 inaugural address delivered by michael debabrata patra, deputy governor, reserve bank of india ( rbi ) at the depr conference on ‘ digital technology, productivity and economic growth in india ’ on november 13, 2024 at jaipur. valuable comments received from sakshi awasthy, sreerupa sengupta, ashish khobragade, himani sekhar, akshara awasthi, swastik yadav, rajib das and editorial help from vineet kumar srivastava are gratefully acknowledged. brynjolfsson, e., and mcafee, a. ( 2014 ). the second machine age : work, progress, and prosperity in a time of brilliant technologies. ww norton & company ; haldane, a. ( 2017 ). productivity puzzles. speech at the london school of economics. world bank. ( 2024 ). the middle - income trap. world development report. jp morgan. ( 2024 ). is generative ai a game changer? kalyani and hogan. ( 2024 ). ai and productivity growth : evidence from historical developments in other technologies. federal reserve bank of st. louis. over the past three decades, the digital revolution has been transforming the world, eclipsing all past revolutions. it is estimated that the global digital economy accounts for more than 15 per cent of global gdp 6. digital technologies are reshaping our lives through their impact on economic growth, employment, consumer welfare and living standards. these technologies are democratising

matter how obscure and complex my questions were, you never failed to give me a well - founded and reasoned answer. that is one of the bundesbank ’ s greatest strengths. so thanks to all of you for the invariably good and loyal cooperation. over the past eight years i have crossed paths with many colleagues not just from the bundesbank, but also from the other central banks, the finance ministry and bafin, and i have learned a great deal from you, been able to put a lot of work into practice, and have much to thank you for. thank you from the bottom of my heart for all the support i have received both within and outside the bundesbank. being unable to express my gratitude to everyone in person, i will have to make do by expressing my cordial thanks to “ my ” directors general : messrs bartholomae, bischofberger, fehr, loeper, reischle and ziebarth and ms sung. yes, and even joachim nagel belongs in that group, albeit for only the first six months of my term of office … i am also deeply indebted to my office team – ms sattler, ms schultz, ms walker and mr bechmann – without whose fantastic backing i would have been left high and dry – i knew i could always count on you. my secretary ms schultz and my chauffeur mr bechmann have even been with me through thick and thin over my full eight years at the bundesbank. i hope you have all recovered from the shock i imagine you got on wednesday of suddenly no longer receiving any e - mails from me, which i often sent before sunrise and late into the night. there are also a number of names outside the bank i would like to mention at this point. first, i would like to thank agustin carstens, not just in his capacity as a representative from the bank for international settlements but also as one of the many international central bankers and government representatives i have had the privilege of working with, some of whom have joined us here in frankfurt. i am delighted to see him here with us today. second, i would like to mention daniele nouy and sabine lautenschlager as representatives of the still - young european single supervisory mechanism. it ’ s quite remarkable to see what has been built up over the past four years, and i am proud to have made my own small contribution under their leadership. 4 /