AI-Driven Automation and the Future of Work in India - Jobs, Skills and Policy for a Changing Economy
Introduction
AI is transforming the way work is done and redefining the nature of jobs over the next decade. In the case of India, it is not just what duties will be taken over by machines, but how millions of employees will move to other sectors, which skills will become more sought-after, and how policy will have to change in response. This article relies on recent labour data of India's Periodic Labour Force Survey (PLFS, 2023-24) and discusses the vulnerabilities to disruption by location and social groups. It recommends viable actions that can be taken to ensure that risks are minimised and economic benefits maximised.
India’s Labour Market and Its Automation Readiness
According to India’s Periodic Labour Force Survey (PLFS), the labour market is changing and growing. Participation in the labour force improved to 60.1 per percent in 2023-24 versus 57.9 per cent the year before, and the ratio of the worker population also improved, signifying the increased employment uptake both in the rural and urban geographies (PLFS, 2023-24). There has also been an upsurge of female involvement. However, a big portion of the job market has been low-wage and informal, with most of the jobs being routine and thus most vulnerable to automation. The statistics indicate a two-tiered reality of the Indian labour market: an increased number of working individuals and a structural weakness.
AI-Driven Automation’s Impact on Tasks and Emerging Opportunities
AI-driven automation, for the most part, affects the task components of jobs rather than wiping out whole jobs. The most automatable tasks are routine and manual, and more recent developments in AI have extended to non-routine cognitive tasks like document review, customer query handling, basic coding and first-level decision-making. There are two concurrent findings of global studies. To start with, part of the ongoing tasks will be automated or expedited. Second, there will be completely new tasks and work positions around data annotation, the operation of AI systems, prompt engineering, algorithmic supervision and AI adherence (World Bank, 2025; McKinsey, 2017).
In the case of India, this change will be skewed by sector. The manufacturing, back-office IT services, retail and parts of financial services will see the highest rate of disruption due to the concentration of routine processes with the ease of technology adoption. In comparison, healthcare, education, high-tech manufacturing and AI safety auditing are placed to create new skilled jobs. NITI Aayog estimates huge returns in GDP with the adoption of AI but emphasises that India has to invest simultaneously in job creation and reskilling to achieve the returns (NITI Aayog, 2025).
Groups with Highest Vulnerability in the Transition to Automation
The PLFS emphasises that a large portion of the Indian population does not have any formal employment and that the social protection is minimal and formal training is not available to them. The risk of displacement is likely to be the greatest for informal employees, making up almost 90% of India’s labour force, who carry out low-skilled, repetitive jobs in the manufacturing and retail industry (PLFS, 2023-24). Women and young people in low-level service jobs also face a greater challenge of transition pressure unless the reskilling and placement efforts can be tailored to them. Meanwhile, major cities and urban centres are likely to have openings for most of the new skilled opportunities at the expense of an increasing geographic and social divide.
The Skills and Supply Challenge
While India’s education and research ecosystem is expanding, there remain significant gaps in preparing the workforce for AI-driven change. Given the vulnerabilities highlighted earlier, AI-focused reskilling must be a priority to equip workers with practical skills that meet industry needs. Short modular programs in areas such as cloud technologies, AI operations, data annotation, human-AI interaction, and cybersecurity can provide workers with employable skills. Particular attention should be given to routine-intensive sectors like manufacturing, retail, and back-office services, as well as to regions with high informal employment or lower access to formal training. Public-private partnerships and localised training initiatives can help ensure that reskilling translates into concrete job opportunities rather than purely theoretical knowledge (NITI Aayog, 2025)
The Way Forward
To facilitate the change process, the policy should focus on three interconnected goals: safeguarding the vulnerable, developing competencies on a large-scale level, and directing innovation towards the widespread ability to benefit.
- Protect the vulnerable through social buffers. Provide informal workers with social protection in the form of portable benefits, temporary income insurance based on reskilling, and earned training leave. While the new labour codes provide essential protections such as unemployment allowances and minimum wage standards, they could be strengthened by incorporating explicit provisions for reskilling. This would better support informal workers during job transitions and enhance workforce adaptability.
- Short modular courses on cloud computing, cybersecurity, data annotation, AI operations, and human-AI interaction should be planned through collaboration between public and private training providers. Special preference should be given to industry-certified certifications and apprenticeship-based placements. These apprenticeships should be made accessible in multiple languages to ensure inclusivity. Existing government initiatives, such as NASSCOM’s Future Skills Prime, need better outreach and marketing to reach the workforce effectively.
- Enhance local labour market mediators. Close the disparity between local demand and the supply of labour in the industry by enhancing placement services and government-subsidised internship programmes for displaced employees and encouraging firms to hire and train locally.
- Invest in AI literacy, AI ethics, and basic education. Democratise access to research and learning by introducing AI literacy in schools, increasing STEM seats in universities, and creating AI labs in the region (NITI Aayog, 2025).
- Encourage AI adoption that creates jobs rather than replaces them. Fiscal and regulatory incentives should prioritise AI tools that augment worker productivity in routine roles instead of eliminating positions. Public procurement can support firms that demonstrate responsible and inclusive deployment of AI, ensuring technology benefits both business and workforce.
- Supervise and oversee the transition. Use PLFS and real-time administrative data to monitor shrinking and expanding occupations. High-frequency labour market dashboards will allow making specific interventions in those regions in which the acceleration of displacement occurs.
Conclusion
The integration of AI will significantly impact the future of the Indian workforce, but policy will determine its effect on the labour market. The PLFS indicates increased employment but a structural weakness of informal and routine employment. Evidence from the Indian market and international research points to the fact that the appropriate combination of social protection, skills building and responsible technology implementation can change disruption into a path of upward mobility. There is a very limited window of action. The extent to which India will realise the productivity and GDP benefits predicted by national research, alongside the investments made in labour market infrastructure, remains uncertain. It is crucial that these efforts lead to the capture of gains and facilitate a fair and inclusive transition for workers.
References
- Annual Report Periodic Labour Force Survey (PLFS) JULY 2022 - JUNE 2023.
- Future Jobs: Robots, Artificial Intelligence, and Digital Platforms in East Asia and Pacific, World Bank.
- Jobs Lost, Jobs Gained: What the Future of Work Will Mean for Jobs, Skills, and Wages, McKinsey Global Institute
- Roadmap for Job Creation in the AI Economy, NITI Aayog
- India central bank chief warns of financial stability risks from growing use of AI, Reuters
- AI Cyber Attacks Statistics 2025, SQ Magazine.
Related Blogs
Executive Summary:
On 20th May, 2024, Iranian President Ebrahim Raisi and several others died in a helicopter crash that occurred northwest of Iran. The images circulated on social media claiming to show the crash site, are found to be false. CyberPeace Research Team’s investigation revealed that these images show the wreckage of a training plane crash in Iran's Mazandaran province in 2019 or 2020. Reverse image searches and confirmations from Tehran-based Rokna Press and Ten News verified that the viral images originated from an incident involving a police force's two-seater training plane, not the recent helicopter crash.
Claims:
The images circulating on social media claim to show the site of Iranian President Ebrahim Raisi's helicopter crash.
Fact Check:
After receiving the posts, we reverse-searched each of the images and found a link to the 2020 Air Crash incident, except for the blue plane that can be seen in the viral image. We found a website where they uploaded the viral plane crash images on April 22, 2020.
According to the website, a police training plane crashed in the forests of Mazandaran, Swan Motel. We also found the images on another Iran News media outlet named, ‘Ten News’.
The Photos uploaded on to this website were posted in May 2019. The news reads, “A training plane that was flying from Bisheh Kolah to Tehran. The wreckage of the plane was found near Salman Shahr in the area of Qila Kala Abbas Abad.”
Hence, we concluded that the recent viral photos are not of Iranian President Ebrahim Raisi's Chopper Crash, It’s false and Misleading.
Conclusion:
The images being shared on social media as evidence of the helicopter crash involving Iranian President Ebrahim Raisi are incorrectly shown. They actually show the aftermath of a training plane crash that occurred in Mazandaran province in 2019 or 2020 which is uncertain. This has been confirmed through reverse image searches that traced the images back to their original publication by Rokna Press and Ten News. Consequently, the claim that these images are from the site of President Ebrahim Raisi's helicopter crash is false and Misleading.
- Claim: Viral images of Iranian President Raisi's fatal chopper crash.
- Claimed on: X (Formerly known as Twitter), YouTube, Instagram
- Fact Check: Fake & Misleading
Introduction
Mr Rajeev Chanderashekhar, MoS, Ministry of Electronics and Information Technology, on 09 March 2023, held a stakeholder consultation on the Digital India Bill. This bill will be the successor to the Information technology Act 2000 and provide a set of regulations and laws which will govern cyberspace in times to come. The consultation was held in Bangalore and was the first of many such consultations where the Digital India bill is to be discussed. These public stakeholder consultations will provide direct public feedback to the ministry, and this will help create a safe and secure ecosystem of Indian Cyber Laws.
What is the Digital India Act?
Cyberspace has evolved the fastest as compared to any other industry, and the evolution of the growth cannot be presumed to be stagnant or stuck as we see new technologies and gadgets being invented all across the globe. The ease created by using technology has changed how we live and function. However, bad actors often use these advantages or fruits of technology to wreak havoc upon the nation’s cyberspace. The use of technology is always governed by the application of usage and safeguard policies and laws. As technology is growing exponentially, it is pertinent that we have laws which are in congruence with today’s time and technology. This is keenly addressed by the Digital India Act, which will be the legislation governing Indian Cyberspace in times to come. This was the need of the hour in order to have the judiciary, legislature and law enforcement agencies ahead of the curve when it comes to cyber crimes and laws.
What is the Digital India Bill’s primary goal?
The Digital India Bill’s goal is to guarantee an institutional structure for accountability and that the internet in India is accessible, unhindered by user harm or criminal activity. The law will apply to new technologies, algorithmic social media platforms, artificial intelligence, user risks, the diversity of the internet, and the regulation of intermediaries. The diversity of the internet, user hazards, artificial intelligence, social media platforms, and intermediary regulation are all discussed.
Why is the Digital India Bill necessary?
The number of internet users in the country currently exceeds 760 million; in the upcoming years, this number will reach 1.2 billion. Despite the fact that the internet is useful and promotes connectivity, there are a number of user damages nearby. Thus, it is crucial to enact legislation to set forth new guidelines for individuals’ rights and responsibilities and mention the requirement to gather data.
Major Elements of the Digital India Act
Major Elements of the Digital India Bill, which will eventually become an Act, which will contribute massively towards a safe cyber-ecosystem, some of these elements aim towards the following-
- The legislation attempts to establish an internet regulator.
- Women and Child safety.
- Safe harbour for intermediaries.
- The right of the individual to secure his information and the requirement to utilise personal data for legal purposes provide the main obstacles to data protection or regulation. The law tries to deal with this difficulty.
- A limit will be placed on how far a person’s personal information can be accessed for legal reasons.
- The majority of the bill’s characteristics are contrasted with the EU’s General Data Protection Regulation.
The Way Ahead
As we ride the wave of developments in cyberspace regarding emerging technologies and automated gadgets, it becomes pertinent that the state takes due note of such technologies and the courts take cognisance of offences committed by using technology. Law enforcement agencies must also train police personnel who can effectively and efficiently investigate cybercrime cases. The ministry also released a few bills last year, such as – the Telecommunication Bill, 2022, Intermediary Rules and the Digital Personal Data Protection Bill, 2022, to better address the shortcomings and the issues in cyberspace and how to safeguard the netizens. The Digital India Act will essentially create a synergy between the current bills and the new ones to come in order to create a wholesome, safe and secure Indian cyber ecosystem.
Conclusion
Digital India Bill is necessary to address the challenges of cyberspace, like personal data and privacy, and policies related to online child and women safety to create a and create a modern and comprehensive legal framework that aligns with global standards of cyber laws. The draft of the bill is expected to come out by July. The ministry looks forward to maximising the impact of the bill through such continuous and effective public consultation to understand and fulfil the expectations and requirements of the Indian netizen, thus empowering him/her equivalent to the netizen of a developed country.
Introduction
On April 30, 2025, the Supreme Court of India delivered a landmark judgment that cast a sharp light on one of the most overlooked yet pressing issues in modern governance—digital inequity. In a country that has a staggering 900 million Internet users, the ruling highlights a disheartening reality, a paradox that brings the “digital divide” to centre stage. While India may be the world’s second-largest online market, a significant segment of its population remains digitally disenfranchised. The judgment, delivered in response to two interconnected petitions, underscored that access to the internet is no longer a luxury but a lifeline integral to exercising fundamental rights. The court pointed out in clear terms that the government must build a digital ecosystem that is inclusive and accessible to all and attributed the right to digital access as an intrinsic part of the right to life and liberty under Article 21 as enshrined under the Indian Constitution.
Understanding the Context: What Prompted the Petitions?
The judgment springs out of two writ petitions, which sought instructions or guidelines for people with blindness or limited vision and acid attack survivors, respectively, to conduct digital Know Your Customer (KYC)/e-KYC/video KYC mandated by RBI’s KYC Master Directions, 2016, which were reserved for judgment on January 28. The court delivered the judgment on April 30, 2025, emphasising the fact that true inclusion in this digital era is confounded in an inclusive digital infrastructure, and it must provide reasonable accommodation to those who face impediments due to any disability or disfigurement.
In consonance with its view, it laid down various guidelines that ensure that all persons with disabilities or acid attack survivors are treated even when digital processes are involved in accordance with the provisions of the Right of Persons with Disabilities Act, 2016 (hereinafter referred to as “RPwD Act”)
Another major observation made by the Honourable SC judges is that the mode of facilitation of government services is through digital platforms, i.e., e-governance, and access to all these welfare schemes is the right of every citizen, irrespective of the fact that they suffer from any disability. The failure of the provisioning of e-governance of these facilities to these individuals is a gross failure of the objectives of these schemes.
Key Observations and Directives
The court directed the government to release fresh guidelines that establish alternative methods to conduct digital KYC/e-KYC for all persons who suffer any impairment, low vision, or disfigurement with greater sensitivity, particularly for acid-attack survivors. The court made its intention very clear that the right to digital access is intrinsic to the right to life and liberty. All the tasks that are included within the ambit of digital KYC, such as pen-on-paper signatures, screen signatures, and the brief window for OTP entry, create an inaccessible and exclusionary framework, violating not just the dignity but the legal rights granted protection under the RPwD Act, 2016. The ruling directs a fundamental reimagining of digital governance through the lens of inclusion, equality, and dignity.
Conclusion
The court is not mincing its words when it declares digital accessibility as a constitutional imperative; it has made it clear that bridging the digital divide is no longer optional but a legal duty. The decision marks the new beginning and a propeller of digital transformation, and a delightful amalgamation of digital access and the rights of people. The effect of this judgment will not be restricted to one class of people. Still, it will cater to all those individuals who face these obstacles on a daily basis due to the exclusionary nature of digital platforms.
References
