TLDR: A recent study by ServiceNow and Pearson projects that Artificial Intelligence will be a significant catalyst for job creation in India, leading to an estimated 2.73 million new tech jobs by 2028. This growth is anticipated across various key sectors, including retail, manufacturing, education, and healthcare, with a high demand for skilled professionals in software development and data engineering.
Amidst ongoing discussions and concerns about Artificial Intelligence (AI) and generative AI (GenAI) potentially leading to job displacement, a new study offers a contrasting perspective for India’s employment landscape. Commissioned by ServiceNow, a leading AI platform for business transformation, in collaboration with Pearson, a prominent learning company, the research forecasts a substantial surge in tech employment.
The study, released on November 13, 2024, indicates that AI is poised to generate an estimated 2.73 million new tech jobs in India by 2028. This growth is part of a broader expansion of India’s workforce, which is projected to increase from 423.73 million in 2023 to 457.62 million by 2028, marking a net gain of 33.89 million workers.
Key growth sectors are expected to be significantly impacted by this tech-driven transformation. The retail sector is anticipated to lead employment growth, requiring an additional 6.96 million workers. Following retail, manufacturing is projected to add 1.50 million jobs, education 0.84 million (840,000) jobs, and healthcare 0.80 million (800,000) jobs. This expansion is fueled by expected economic growth and the ongoing integration of technology.
Sumeet Mathur, Senior Vice President & Managing Director, ServiceNow India Technology & Business Center, emphasized the pivotal role of AI in this transformation. “AI will be a key catalyst for job creation across India’s growth engines, particularly in roles requiring advanced technical skills,” Mathur stated. He added that this strategic focus would not only create high-value opportunities but also empower professionals to build enduring digital careers. ServiceNow is actively contributing to bridging the skills gap through initiatives like ‘RiseUp with ServiceNow’ and strategic partnerships with local universities and government programs, aiming to ensure India’s continued leadership in the global tech economy.
The demand for tech-related roles is soaring across various industries. Software Application Developers are expected to see the highest increase, with 109,700 new positions. Other significant roles include Systems Software Developers (48,800 new jobs), Data Engineers (48,500 new jobs), Web Developers (48,500 new jobs), Data Analysts (47,800 new jobs), and Software Testers (45,300 new jobs).
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While the report highlights job creation, it also acknowledges the ongoing debate. Some experts, like Shankar Sharma, investor and founder of AI company Gquant, have expressed concerns, suggesting that India’s demographic dividend could become a liability if sufficient opportunities do not emerge. Sharma has also cautioned the IT sector about AI’s potential to replace roles, including CEOs. However, industry analysts generally agree that GenAI will lead to substantial productivity gains, with the Reserve Bank of India’s Deputy Governor Patra projecting that generative AI could add between $359 billion and $438 billion to India’s GDP by fiscal year 2030.
