Nilekani predicts small businesses drive jobs
Analysis based on 6 articles · First reported Aug 06, 2026 · Last updated Aug 07, 2026
The remarks could influence investor sentiment toward large-cap IT services firms and small-cap or startup ecosystems in India, as they suggest a structural shift in employment generation. Markets may see increased interest in small business enablement platforms and AI application companies, while large corporations might face concerns about future workforce reductions.
At the NCAER India Policy Forum 2026, Infosys co-founder Nandan Nilekani stated that large, well-structured corporations in India are likely to become 'net job losers' in the coming years due to automation and artificial intelligence (AI) streamlining tasks. He argued that millions of small businesses will become the primary engine for future employment, as they are more resilient to AI-driven job losses. Nilekani projected that India is on track to reach one million startups by 2035, up from the current 150,000. He advocated for large-scale deregulation, simplified business interfaces, and easier access to capital and markets through digital systems such as the State Bank of India's Account Aggregator and the Open Network for Digital Commerce (ONDC). He also called for portable benefits and credentials to support a workforce increasingly operating within a gig economy. Nilekani emphasized that India should focus on applied AI to become the 'AI use case capital' of the world, deploying AI in education, healthcare, and agriculture rather than competing in AI infrastructure.
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