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AI Threatens 2 Million Jobs in India’s Tech Sector, Warns NITI Aayog

NITI Aayog's report highlights the potential impact of AI on India's tech jobs, projecting a loss of 2 million positions. What does this mean for the future?

Mumbai, India — A recent report by NITI Aayog reveals that advancements in artificial intelligence (AI) could threaten approximately 2 million jobs within India’s burgeoning tech sector. This projection poses significant implications not only for the economy but also for the workforce’s future.

The report, published on October 10, 2025, underscores the dual-edged nature of AI. While it promises increased efficiency and innovation, it simultaneously raises concerns about job displacement. NITI Aayog, the government’s policy think tank, suggests that the rapid adoption of AI might lead to substantial changes in employment dynamics, particularly in technology-driven roles.

AI Threatens 2 Million Jobs in India's Tech Sector, Warns NITI Aayog

According to the report, the sectors most at risk include IT services, software development, and data analytics. These areas have seen a surge in automation, threatening positions that require routine tasks and data processing. For instance, AI’s ability to analyze vast datasets far surpasses human capabilities, making certain jobs redundant.

However, as some jobs may vanish, others will emerge. The report emphasizes the need for upskilling and reskilling initiatives to prepare the workforce for the evolving landscape. NITI Aayog advocates for educational reforms that focus on critical thinking, creativity, and technological proficiency—skills that AI cannot easily replicate.

The report emphasizes the need for upskilling and reskilling initiatives to prepare the workforce for the evolving landscape.

The Indian government is already taking steps in this direction. Initiatives such as the Skill India Mission aim to enhance employability by providing training in emerging technologies. This proactive approach seeks to mitigate the impact of AI on employment and ensure that workers are equipped for future job markets.

Moreover, the private sector has a significant role to play. Tech giants like Infosys and Tata Consultancy Services are investing in AI research while simultaneously committing to workforce development. For instance, Infosys has launched a program to train over 100,000 employees in AI and machine learning by 2026. Such initiatives illustrate the collaboration required between government and industry to navigate the challenges posed by AI.

Despite these efforts, skepticism remains. Critics argue that the pace of AI adoption may outstrip the ability of educational institutions to adapt. The fear is that while some workers will gain new skills, many others, especially in lower-skilled jobs, may struggle to transition into new roles.

Furthermore, this potential displacement is not unique to India. A 2023 report by the World Economic Forum estimated that by 2025, 85 million jobs could be displaced globally due to AI and automation, affecting various industries worldwide. This statistic highlights a broader trend that policymakers around the globe are grappling with, underscoring the need for a cohesive strategy to address workforce challenges.

Looking ahead, the future of work in India will likely be shaped by how effectively stakeholders respond to these challenges. Continuous dialogue between the government, education systems, and industry leaders is crucial. By fostering an adaptable workforce, India can not only mitigate the risks of job displacement but also harness the full potential of AI technology.

Tech giants like Infosys and Tata Consultancy Services are investing in AI research while simultaneously committing to workforce development.

In a world increasingly driven by technology, the ability to pivot and adapt to change will determine the resilience of the workforce. As AI continues to evolve, the focus must shift towards creating a sustainable future that embraces innovation while safeguarding employment.

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Looking ahead, the future of work in India will likely be shaped by how effectively stakeholders respond to these challenges.

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