AI Job Impact in India Debated

Multiple reports and statements have assessed the impact of artificial intelligence on employment in India. Goldman Sachs economists, including Santanu Sengupta, argue that India's large share of physical and mechanical occupations limits near-term AI displacement, though services such as IT and call centers face higher exposure. They estimate that 8-12% of non-agricultural employment is at risk of substitution, while 42-48% could be complemented. Nomura Holdings, in a report by Sonal Varma and Si Ying Toh, found that AI-related hiring in India reached 83,100 compared to 31,921 layoffs and attrition, indicating a net positive impact so far, though it creates a two-tier labor market with reduced demand for entry-level workers. Infosys co-founder Nandan Nilekani, speaking at the National Council of Applied Economic Research India Policy Forum 2026, predicted that large corporations will become net job losers due to AI, while millions of small businesses will drive future employment, and projected India could reach one million startups by 2035. These analyses highlight both the opportunities and disruptions AI brings to India's labor market.