New Delhi, July 6, 2025 – A new report highlights the urgent need for India to train its workforce in artificial intelligence (AI) skills to stay competitive in the fast-changing global job market. Backed by Google.org and the Asian Development Bank, the report emphasizes that without focused efforts to upskill, Indian workers risk falling behind as AI transforms industries worldwide.
India, one of the world’s largest economies, is at a critical juncture. With a massive population of young people, the country has a unique opportunity to lead in AI-driven industries. However, the report points out a gap between the skills workers currently have and what employers need in an AI-powered future. It calls for immediate action to prepare workers for roles in AI, machine learning, and related fields.
The report notes that India’s demand for AI professionals is expected to reach one million by 2026, driven by rapid advancements in technology and automation. Despite this, many young job seekers, including graduates from top engineering colleges, struggle to find employment due to a lack of relevant skills. In 2024, only 10% of India’s 1.5 million engineering graduates secured jobs, according to earlier findings.
“AI is reshaping the job market at an unprecedented pace,” the report states. “India must act now to equip its workforce with the tools and knowledge to thrive in this new era.” It recommends expanding AI education, offering hands-on training, and aligning academic programs with industry needs.
Indian IT giants like TCS, Infosys, and Wipro are already taking steps to address this challenge. For example, TCS has trained over 100,000 employees in AI and machine learning skills, signaling a shift toward AI-focused strategies in the corporate sector. Additionally, nearly 50% of Indian tech professionals are now receiving AI training at their workplaces, according to a Naukri.com report.
However, challenges remain. Many professionals face barriers such as heavy workloads and outdated technology, which limit their ability to upskill. The report also highlights the need for flexible, accessible training programs to meet the growing demand for AI expertise.
India’s government is stepping up efforts to bridge this gap. The Ministry of Electronics and Information Technology (MeitY) has launched initiatives like the IndiaAI Future Skills program, which integrates AI education into universities and offers fellowships for PhD students at top institutions. These efforts aim to prepare India’s youth for a future where AI is expected to drive economic growth, with the country’s AI industry projected to reach $28.8 billion by 2025.
Globally, India is seen as a leader in AI adoption, with 92% of workers using AI regularly—the highest rate worldwide. Yet, many also fear job losses due to automation, according to a BCG report. The new report counters these concerns, suggesting that AI can create new opportunities if workers are equipped with the right skills.
“India has the potential to become a global AI hub,” said an expert quoted in the report. “But this requires investment in education, training, and innovation to ensure workers are ready for the jobs of tomorrow.”
As AI continues to reshape the global economy, India’s ability to upskill its workforce will determine its place in the future job market. The report serves as a wake-up call, urging businesses, educators, and policymakers to work together to prepare the country for an AI-driven world.
