A recent NITI Aayog report projects that India’s tech and customer-experience sectors could generate up to 4 million new jobs over the next five years, despite automation displacing routine roles. Titled “Roadmap for Job Creation in the AI Economy,” the report, launched by NITI Aayog CEO BVR Subrahmanyam, underscores AI’s transformative impact on the workforce.

Opportunities and challenges of AI

The report highlights that AI presents both risks and opportunities for India’s tech services sector. It notes that India stands at a critical juncture, requiring a “bold and strategic action plan” to harness AI’s full potential. “India’s strength lies in its people. With over 9 million technology and customer experience professionals, and the world’s largest pool of young digital talent, we have both the scale and ambition. What we need now is urgency, vision, and coordination,” said Subrahmanyam.

National AI Talent Mission

To capitalise on AI-driven opportunities, NITI Aayog proposes a National AI Talent Mission to position India as a global hub for AI skills. The mission rests on three pillars: integrating AI literacy into education, establishing a national reskilling engine, and attracting AI talent through partnerships and robust infrastructure.

The report forecasts that India’s demand for AI talent will surge from 8,00,000–8,50,000 to over 12,50,000 between 2024 and 2026, growing at a compound annual growth rate (CAGR) of 25%, while the existing talent pool expands at only 15%. This gap underscores the need for urgent reskilling initiatives to meet future demands.