Chief Economic Advisor V Anantha Nageswaran advised youngsters to look for skill training in light of the risks AI posed to reducing employment opportunities, along with asking the private sector to invest in hiring and good pay incentives to improve economic growth.
Speaking at an ASSOCHAM (Associated Chambers of Commerce and Industry of India) event, Nageswaran noted that global uncertainties have made a comeback in the last five days.
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He stated that he was confident that the fiscal deficit would be close to 4.3% of the Gross Domestic Product (GDP) by the financial year 2027. The CEA stated that official data indicates the economy retaining strong momentum. He further said that India should not expect food price increases to persist throughout financial year 2027. He added that the Centre was watching global uncertainties closely.
India is emerging as a key test case for artificial intelligence's impact on employment, with AI-related hiring outpacing job losses so far, according to Nomura Holdings Inc.
The country's large technology-services industry and role as a global back-office hub mean it is experiencing the “largest absolute impact” from AI across layoffs, hiring freezes and recruitment, Nomura economists Sonal Varma and Si Ying Toh said in a report.
The economists analysed 69 anecdotes of AI-related employment changes across Asia, mostly from 2022 through August 2026. India recorded 83,100 AI-related hires during the period, compared with 31,921 layoffs and attrition, according to the report.
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The findings show that AI is reshaping India's workforce rather than affecting all jobs equally. “Most firing cases are support teams replaced by chatbots, while most hiring cases are of IT-services graduates that firms explicitly credit to AI demand,” the economists said.
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