Nearly 197 million Indian workers are employed in occupations at high risk of automation, while about 46 million may benefit from enhanced productivity through artificial intelligence, according to a recent study.
A new report released by V Anantha Nageswaran, the Chief Economic Adviser to the Government of India, reveals significant insights into the impact of artificial intelligence (AI) and automation on the Indian workforce. Based on data from the Periodic Labour Force Survey (PLFS), the study indicates that approximately 197 million workers, equating to 11.4% of India’s total workforce, are employed in roles deemed highly vulnerable to automation. In contrast, around 46 million workers, representing 7.6% of the workforce, occupy positions where AI could enhance productivity.
Disparities in AI Impact Across States
The findings highlight a marked disparity in how different states will be affected by AI. Kerala, Haryana, Maharashtra, and Tamil Nadu are identified as having the highest concentrations of jobs that could be augmented rather than replaced by AI. In Kerala, for instance, 14.4% of its workforce is engaged in roles likely to benefit from AI assistance, followed by Haryana at 11.5%, Maharashtra at 11.1%, and Tamil Nadu at 10.7%. These jobs primarily include healthcare professionals, educators, scientists, engineers, and managers—positions that rely heavily on human expertise, judgment, and responsibility.
Conversely, states such as Uttar Pradesh, Bihar, Jharkhand, and Madhya Pradesh face a dual challenge of having lower exposure to AI-related productivity gains along with fewer workers employed in roles where technology can complement human skills. This disparity raises concerns about the potential for widening economic inequalities among different regions of India, as those states may struggle to adapt to the evolving job landscape.
Study Background and Authors
The report, titled AI, Automation and India’s Workforce: Who Gains, Who’s Exposed, and How Policy Can Shape the Future, was authored by Vidya Mahambare, chairperson of the Centre for Finance and Economics Research at the Great Lakes Institute of Management in Chennai; Vivek Jadhav, assistant professor of economics at the Institute of Management Technology in Ghaziabad; and Vishnu Venugopalan, an Indian Administrative Service officer currently serving as Additional Secretary to the Tamil Nadu Chief Minister. This research draws upon the latest labour market data in India, providing a localized perspective on AI exposure rather than relying solely on international estimates.
Policy Recommendations for Workforce Development
In light of the potential impacts of AI on employment, the report advocates for targeted policy interventions aimed at workforce development. The authors recommend implementing reskilling initiatives and enhancing access to training programs that integrate technical skills with essential soft skills, such as communication, critical judgment, and problem-solving abilities. They stress the importance of a proactive approach to preparing the workforce, suggesting that efforts to equip workers for the changing job landscape should begin before the effects of AI become evident in employment statistics.
Moreover, the report emphasizes the necessity of expanding employment opportunities in critical sectors, including healthcare, education, elderly care, and skilled trades, where India is currently experiencing labor shortages. These sectors are expected to remain vital, as they demand a human touch that automation cannot replicate, thus underscoring the importance of human labor in certain fields despite the advances in technology.
Implications for the Future
The implications of this study are profound, as they suggest that while AI has the potential to drive productivity gains in certain sectors, it also poses significant risks to a large segment of the workforce. The findings serve as an urgent call to action for both state and national governments to prioritize workforce preparation and to ensure that all regions of India can adapt effectively to the rapidly changing economic landscape.
As AI continues to evolve, the challenge will be to strike a balance between embracing technological advancements and safeguarding the livelihoods of millions of workers who may be displaced by automation. The report underscores the necessity for comprehensive policy frameworks that not only mitigate job displacement but also harness the productivity potential of AI to benefit the wider economy.
Conclusion
As India stands on the cusp of a technological transformation driven by AI and automation, the report highlights the importance of strategic interventions to maximize the benefits while addressing the challenges posed by these changes. The findings underline the need for a concerted effort to ensure that the workforce is prepared for the future, protecting vulnerable workers while promoting growth and innovation across the economy.
