- Recently, Tata Consultancy Services (TCS) is set to lay off around 2% of its workforce due to skill mismatches and AI-led disruptions.
AI as a Job Creator
- Role Expansion: AI job postings in India have grown by 21% annually since 2019 (Bain & Co.).
- Job Creation: India’s AI sector is projected to add 2.3 million jobs by 2027.
- Wage Growth: AI role salaries have risen by 11% annually, driven by talent shortages.
AI as a Job Disruptor
- Mass Layoffs: TCS plans to lay off 12,000 employees in 2025.
- Worker Anxiety: 74% of Indian workers fear AI will replace their jobs (MWTI).
- Talent Mismatch: Only 15–20% of India’s workforce is currently equipped with AI skills.
- Talent Gap: By 2027, AI job demand will exceed supply by 1.1 million professionals in India.
Skills Crisis Across Sectors
- Graduate Employability: Only 42.6% of graduates are job-ready overall & just 46.1% for AI/ML roles.
- Sectoral Impact: Skill shortages affect auto, pharma, and sunrise sectors like EVs & semiconductors.
- Workforce Deficit: India could face a skill gap of 30–32 million by 2025 and 49 million by 2027.
- Corporate Response: Large companies are investing in blue-collar upskilling to bridge the talent gap.
- Professional Gaps: 77% of Indian professionals feel they lack sufficient skills in emerging tech.
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Way Forward
- Skill Alignment: Launch nationwide AI-focused skilling initiatives with public-private collaboration.
- Curriculum Reform: Align curricula with future tech needs & promote industry-academia partnerships.
- Data Integrity: Develop real-time, disaggregated job market data to inform policy and planning.
- Expand Apprenticeships: Promote internship programs like the PM Internship Scheme to reach MSMEs and Tier 2/3 cities.
India’s AI-driven labour transition demands urgent, inclusive skilling reforms to harness its job-creating potential while mitigating risks. A future-ready workforce can turn disruption into a demographic advantage.
Reference: Economic Times
PMF IAS Pathfinder for Mains – Question 268
Q. How can the increasing use of Artificial Intelligence (AI) affect the labour market in India? Critically evaluate the potential benefits and challenges of integrating AI with the labour Market. (250 Words) (15 Marks)
Approach
- Introduction: Write a contextual introduction by mentioning the TCS layoff.
- Body: Write potential benefits of integrating AI with the labour market, challenges and way forward.
- Conclusion: Emphasis on a balanced approach, including skill development, ethical AI deployment, and inclusive policy design.
