India has emerged as a global IT outsourcing hub and a breeding ground for technology start-ups but there is still a pressing need to address the skills gap. As industries in India rapidly evolve due to technological advancements and shifting market conditions, professionals recognize the necessity of acquiring new, specialized skills to meet employer expectations. A recent report indicates that only 29% of Indian fresh graduates in white-collar jobs feel secure about retaining their positions in FY25. Professionals in the IT, telecom, and tech sectors, especially those with engineering degrees, consider upskilling important for their careers. The study shows that the highest intention to upskill in FY25 is among professionals in manufacturing, engineering, capital goods, and BFSI sectors.
In terms of cities, Bengaluru and Chennai lead in upskilling initiatives, followed by Mumbai, Delhi, and Hyderabad. Fresh talent from Tier 2 and 3 cities is increasingly enrolling in upskilling courses, driven by the need to stay relevant, widespread internet access, and the rise of e-learning platforms. Popular upskilling areas include data analytics, machine learning, cybersecurity, banking and wealth management, digital marketing, robotics, artificial intelligence, and cloud computing. These programs can lead to a salary increase of 20-30% in metro cities and 15-20% in Tier 2 and 3 cities. Gender diversity in upskilling shows that 20-25% of women in IT are actively involved in these upskilling programs, though 30-35% feel under confident due to a lack of training in advanced technologies like generative AI, Robotics, and Cloud Computing.
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The World Economic Forum predicts a 22% shift in the job landscape by 2028, driven by emerging AI roles. The India Skills Report 2024 forecasts that AI will create 1.6 million new jobs in healthcare by 2030, while finance may see 1 million jobs displaced but also 1.5 million new AI-skilled positions. Manufacturing is expected to generate 5 million new AI-related jobs by 2030, contrasting with retail, which may lose 850,000 jobs by 2025 but gain 4 million new AI-centric roles. Hence, with the rising global demand for AI skills, India must undertake strategic initiatives to address these evolving needs.
By 2025, AI is expected to contribute up to $500 billion to India’s GDP, potentially reaching $967 billion by 2035. According to NLB Services, in order to succeed in the AI-driven future, a proactive strategy for continuous learning and upskilling is required; otherwise, India may experience instability owing to insufficient upskilling in the IT sector, particularly in AI.
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