AI Sparks Job Fears in India
BENGALURU, India — On March 9, 2025, experts sounded alarms that AI-powered automation was rattling India’s $245 billion IT sector. The rapid emergence of artificial intelligence tools is threatening job security for millions of workers. We are now seeing this in cities like Bengaluru and Hyderabad, where IT drives the economy. That drive for efficiency is why companies are adopting AI.
A Growing Worry for Workers
India’s information technology industry provides jobs for more than 4 million people. It’s a major driver of the country’s expansion, generating billions of dollars for services such as coding and customer service. But AI is changing the game. ChatGPT and similar tools can perform tasks that were once done by people. The greatest threat is to routine jobs, such as coding, testing and back-office work. These jobs could evaporate by the numbers of 10-15% a year, experts say.
Trouble ahead, cautions National Association of Software and Services Companies (NASSCOM). It also predicts that up to 1.2 million jobs could be lost by 2030 if trends continue. This move comes as India anticipates 200 million youth entering the workforce by then. The competition between job creation and automation is a major issue.
Why AI Is Taking Over
The rise of A.I. is not new, but it is accelerating. Firms want to reduce expenses and increase production. Automation does that fast. AI, for example, can write, within seconds, code or respond to a customer call. It saves money but loses workers on the way. It is already commonplace with big IT companies like Infosys and TCS to use AI tools for upskilling.
In past waves of tech, such as computers, low-skill jobs bore the brunt. AI is different. It also aims at jobs that require skill, such as programmers and managers. A recent survey by IIM Ahmedabad reveals that 68% of IT professionals are afraid of their jobs getting automated in the next five years. The stakes are high in an industry that fuels India’s global standing.
Voices from the Field
Experts see both sides. “AI will eliminate jobs, but also it can generate new jobs,” said Vineet Nayar, former chief executive of HCL Technologies. He thinks postings in AI design and data analysis will expand. Yet he acknowledges the transition won’t straightforward. Most workers do not have the skills to pivot quickly.
Analysts concur the effect is real. In posts on X, IT professionals express increasing anxiety. GCCs added 100,000 jobs in 2024, the IT’s 20,000, they say. But automation could wipe out that gain. The gig economy is part of the potential solution — freelance work. Still, job security is tenuous.
A Mixed Future Ahead
The news isn’t all bad. AI could create new industries. There are increasing job openings in machine learning and cybersecurity. India’s government is fighting back with initiatives such as the India AI Mission. In 2024, it also allocated $1.24 billion for training in AI skills. Private companies are also getting in on the action. Infosys started training to prepare workers for change.
But challenges loom. India’s workforce is largely informal, 90 percent in insecure jobs. It’s not easy for those workers to retrain. Keep in mind that automation is booming out in cities and eating up rural areas on the way. A World Bank report predicts more migration to cities if rural jobs vanish. Growth gaps could grow wider.
What’s Next for India’s IT?
But the road ahead is conditioned on action. Upskilling is key. Schools and firms need teach AI-based skills at the moment. Policies could mitigate the damage, such as tax incentives for firms that retrain employees. Supporting startups in AI may help with jobs as well. Could the gig economy fill the gaps? It requires safety nets, however.
The Indian IT sector is at the crossroads. Automated processes powered by artificial intelligence provide efficiency, but they threaten the livelihoods of millions. The labor force could either shrink or change dramatically.” However, leaders must balance innovation with job security. The choices being made now will shape India’s technology future — and its people.