India’s graduate employment crisis in the age of automation and AI

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India’s graduate employment crisis in the age of automation and AI

In a rapidly evolving job market, the future of Indian graduates hangs in the balance. As automation and AI continue to transform the workforce, the country is struggling to keep pace with the changing demands of the industry.

According to the Future of Positions Report 2025, a staggering 69% of formal sector jobs in India, including those in manufacturing, IT services, finance, and retail, may be automated by 2030. This is a wake-up call for the country’s education system, which must adapt to equip graduates with the skills needed to thrive in an AI-driven economy.

The Impact of Automation on Entry-Level Jobs

Entry-level and routine positions, which are typically the first for new graduates, are particularly vulnerable to automation. This is a major concern, as these roles are often the stepping stones for young professionals to gain experience and build their careers. The consequences of widespread automation on these jobs will be far-reaching, with potentially devastating effects on the employability of Indian graduates.

The Skills Gap: A Growing Concern

India is facing a significant shortfall in AI-ready professionals, despite its vast youth population and expanding higher education infrastructure. Industry projections suggest that while the AI sector may generate over 2.3 million jobs by 2027, the country is on track to produce just 1.2 million qualified candidates. This skills gap is a pressing issue that requires immediate attention and action.

The Need for Focused Upskilling

The education system must respond to this crisis by providing students with the skills needed to succeed in an AI-driven economy. This requires a focus on upskilling and reskilling, as well as the development of new programs and courses that address the demands of the industry. By taking a proactive approach to skills development, India can ensure that its graduates are equipped to thrive in the face of automation and AI.

In conclusion, the graduate employment crisis in India is a pressing issue that requires urgent attention and action. By acknowledging the impact of automation and AI on the job market, and by taking steps to address the skills gap, India can ensure that its graduates are equipped to succeed in the future. It is time for the education system to adapt to the changing demands of the industry, and for students and graduates to be empowered with the skills needed to thrive in an AI-driven economy.

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