India is positioned to emerge as a strategic exporter of artificial intelligence talent as global industries transition from Industry 4.0 to Industry 5.0, according to a joint report released by FICCI and KPMG India. The report highlights the growing demand for specialized roles such as AI imaging specialists, prompt engineers, and smart grid analysts across sectors including IT, healthcare, finance, and manufacturing.
Countries like Germany, the UK, and the US are facing acute shortages of AI-skilled professionals, creating an opportunity for India to supply talent at scale. However, the report notes that only 26.1 percent of Indian youth currently access formal vocational training, underscoring a significant gap in skilling. With the half-life of skills now reduced to under five years, continuous upskilling has become essential.
To address this challenge and capitalize on the opportunity, the report recommends the development of sector-specific AI skilling frameworks that align training with evolving industry needs. It calls for the modernization of Industrial Training Institutes to incorporate AI readiness into curricula and provide clear mobility pathways to higher education.
The report also advocates for public–private investments in accelerated skilling programs, the establishment of localized AI hubs in Tier 2 and Tier 3 cities, and the promotion of vernacular and blended learning models to ensure inclusive access. Additional recommendations include embedding soft skills into training modules, aligning certifications with international standards, negotiating global talent mobility tracks, and ensuring ethical AI adoption that includes representation of marginalized groups.
The report was officially released by Jayant Chaudhary, Minister of State for Skill Development and Entrepreneurship and Minister of State for Education, Government of India.
Narayanan Ramaswamy, Partner and Head – Education and Skill Development at KPMG in India, stated that India stands at a critical inflexion point. With the largest youth population and a rapidly expanding digital ecosystem, the country is uniquely positioned to lead global workforce transformation.
Debabrata Ghosh, Partner – Education and Skill Development at KPMG in India, added that India’s demographic advantage, digital infrastructure, and vibrant startup ecosystem provide a strong foundation for an AI-driven future. However, he cautioned that challenges such as informality, sectoral imbalance, and digital divides must be addressed to fully realize this potential.
