India has the potential to become a global hub for artificial intelligence talent, according to a joint report released by FICCI and KPMG India. As industries such as IT, healthcare, finance, and manufacturing undergo rapid AI-led transformation, new roles are emerging—including AI imaging specialists, prompt engineers, and smart grid analysts. The report highlights that countries like Germany, the UK, and the US are facing acute shortages in AI-skilled professionals, positioning India as a strategic exporter of talent.
Despite this opportunity, only 26.1 percent of Indian youth currently access formal vocational training. The report notes that the half-life of skills has now reduced to under five years, underscoring the urgency for continuous upskilling.
To address this gap, the report recommends the development of sector-specific AI skilling frameworks tailored to industry needs. It calls for the modernisation of Industrial Training Institutes to incorporate AI readiness into their curricula and establish clear pathways to higher education.
Additional proposals include public–private investments in accelerated skilling, the creation of localised AI hubs in Tier 2 and Tier 3 cities, and the adoption of vernacular and blended learning methods. The report also stresses the importance of embedding soft skills, aligning certifications with global standards, negotiating international talent mobility tracks, and ensuring ethical AI adoption that includes representation of marginalised communities.
The report was officially released by Jayant Chaudhary, Minister of State for Skill Development and Entrepreneurship and Minister of State for Education. Narayanan Ramaswamy, Partner and Head of Education and Skill Development at KPMG in India, stated that India is at a critical inflexion point, with its youth population and digital ecosystem offering a unique advantage in leading global workforce transformation.
Debabrata Ghosh, Partner for Education and Skill Development at KPMG in India, added that while India’s demographic edge, digital infrastructure, and startup ecosystem provide a strong foundation for an AI-driven future, challenges such as informality, sectoral imbalance, and digital divides must be addressed.
