The report says that in India, sectors such as manufacturing, customer service, clerical roles, and routine administration are projected to witness the steepest job declines.
India stands at a defining crossroads in the global labour market transformation, according to the World Economic Forum’s Future of Jobs Report 2025. With automation, artificial intelligence (AI), and climate imperatives reshaping industries, the report warns that millions of jobs in India are at risk even as new opportunities emerge, demanding urgent reskilling of the workforce.
The report, which surveyed 803 companies across 27 industries and 45 economies, including India, highlights that while global labour markets will see both job losses and gains, the impact on India will be particularly pronounced due to its massive young population and diverse employment base.
It says that in India, sectors such as manufacturing, customer service, clerical roles, and routine administration are projected to witness the steepest job declines. The automation of repetitive tasks and the rapid adoption of AI-based technologies are already beginning to displace workers in business process outsourcing (BPO) and back-office support, which employ millions in the country.
Yet, the report also points to areas of growth. India is expected to see rising demand for data analysts, machine learning specialists, cybersecurity experts, renewable energy engineers, and healthcare professionals. The digital economy, already contributing over 8 per cent to India’s GDP, will expand further, opening up opportunities for high-skilled employment.
AI, Climate, and India’s Labour Market
Artificial intelligence stands out as the single most transformative force shaping India’s job market. The WEF finds that 75 per cent of Indian employers plan to adopt AI in some form by 2027. However, only 52 per cent of companies believe their workforce is adequately prepared for this transition.
At the same time, the global push towards green energy and climate adaptation will create new employment avenues in India. With the government committing to achieve net-zero emissions by 2070, the report suggests that jobs in solar and wind energy, sustainable agriculture, and electric mobility will expand rapidly. “India is uniquely positioned to benefit from the green transition due to its renewable energy investments and large pool of engineering talent,” the report notes.
Reskilling: The Urgent Priority
One of the starkest warnings for India is the skills gap. The report finds that 44 per cent of Indian workers will require reskilling within the next five years. Skills in AI, big data, and cloud computing top the demand list, followed by adaptability, leadership, and problem-solving.
The challenge is not just about technical know-how. “Employers in India are increasingly seeking workers who can combine digital expertise with soft skills such as communication and critical thinking,” the WEF observes. Without large-scale training initiatives, India risks a mismatch where new jobs remain unfilled while millions of workers are displaced.
Government initiatives such as Skill India Mission and the expansion of digital skilling platforms are steps in the right direction. However, the report cautions that the scale of transformation needed far outpaces current efforts. Private sector participation, especially from large IT companies like Infosys, Wipro, and TCS that already run reskilling programmes, will be critical.
Impact on Women and Youth
The report also underscores the uneven impact of these shifts. Women, who already face lower labour force participation in India (at just 37 per cent compared to men’s 76 per cent), are disproportionately at risk of displacement from clerical and administrative jobs. Unless deliberate action is taken, automation could worsen gender disparities in the workplace.
On the other hand, India’s demographic dividend, its youth, could become its greatest asset if properly skilled. With over 12 million people entering the labour market each year, India can potentially supply talent not only for its domestic industries but also for global markets facing ageing populations. “India could be the world’s skills hub, but only if it invests heavily in future-ready education and training,” the report stresses.
Global Context, Indian Stakes
Globally, the WEF estimates that 23 per cent of jobs will change by 2030, with 69 million created and 83 million eliminated. For India, with its 500-million-strong workforce, the stakes are higher than most. The country’s economic growth, poverty reduction, and social stability will depend on how it navigates this transition.
Indian policymakers face the dual challenge of creating jobs for a growing workforce while simultaneously reskilling existing workers. Experts warn that failure to bridge this gap could lead to rising unemployment, underemployment, and social unrest.
Corporate and Policy Roadmap
The report calls on Indian businesses and policymakers to act decisively on three fronts:
- Accelerating Reskilling: Scale up skill development initiatives to prepare workers for digital and green jobs.
- Strengthening Public-Private Partnerships: Leverage the capabilities of the IT sector and global corporations operating in India to design industry-relevant training.
- Supporting Vulnerable Groups: Introduce targeted measures for women, low-skilled workers, and those in rural areas most at risk of job losses.
“India’s future of work story will be defined by how quickly it can transform its workforce for an AI- and climate-driven economy,” the report concludes.
The WEF’s findings come at a crucial moment for India. With one of the fastest-growing economies and a global reputation as a technology hub, the country has the opportunity to lead in shaping the future of work. But the risks of inaction are equally stark.
As the report highlights, the future of jobs in India will not be determined by automation alone, but by how effectively the nation can harness technology, invest in people, and ensure that growth is inclusive. The choices made in the next five years will decide whether India’s demographic dividend becomes a driver of prosperity – or a burden of unemployment.
