India's technology and gig workforce is rapidly embracing artificial intelligence, with over 40 percent now utilizing AI tools for various professional tasks according to the latest India Skills Report. The comprehensive study reveals significant improvements in the country's employment readiness and skill development landscape.
Rising Employability and Demographic Advantage
The recently released 13th edition of the India Skills Report 2026 shows that employability in India has improved to 56.35 percent, marking a noticeable increase from 54.81 percent recorded in 2025. This demonstrates consistent progress in job readiness and skill adaptability among Indian professionals.
Conducted by Educational Testing Service (ETS) in collaboration with prominent organizations including Confederation of Indian Industry (CII), All India Council for Technical Education (AICTE), and Association of Indian Universities (AIU), the report gathered data from over 100,000 candidates and 1,000 employers across seven key sectors.
India's demographic profile continues to be a significant advantage, with the workforce maintaining an average age of 28.4 years. The report highlights that this young population presents both urgency and opportunity for the nation's economic growth.
Women Lead in Job Readiness
In a historic development, female employability has surpassed male employability for the first time in India. The data shows women achieving 54 percent employability compared to 51.5 percent for men, a shift largely attributed to hybrid work models and digital skilling initiatives.
The report also identifies emerging employment hubs in Tier-2 and Tier-3 cities such as Lucknow, Kochi, and Chandigarh, indicating a narrowing urban-rural skill gap across the country.
AI Adoption and Future Projections
India's engagement with artificial intelligence is expanding rapidly across sectors. The findings indicate that more than 90 percent of employees across various industries now use Generative AI tools in their work. Specifically in the IT sector, 70 percent of organizations have implemented AI-based recruitment systems, while half of BFSI companies have adopted similar technologies.
India currently accounts for 16 percent of the world's AI talent, with projections indicating this could reach 1.25 million professionals by 2027. The report particularly notes that with 71 percent of Gen Z freelancers receiving AI training, India is pioneering a new hybrid model of human-AI collaboration that balances technical precision with creative problem-solving.
Hiring intentions for FY 2026-27 show significant optimism, standing at 40 percent compared to 29 percent in the previous year. This growth is driven by sustained demand in technology, BFSI, manufacturing, renewable energy, and healthcare sectors.
The BFSI and fintech sectors alone are expected to generate approximately 250,000 new jobs by 2030, maintaining an annual growth rate of 8.7 percent.
Looking at global trends, the report projects that by 2030, worldwide labor shortages could reach 85 million positions. Meanwhile, India is forecast to supply a surplus of 45 million skilled professionals, potentially positioning the country as the world's primary talent hub.
The report concludes that to sustain this growth trajectory, India must scale AI-ready learning ecosystems that empower learners across all age groups, from schoolchildren to senior professionals. Initiatives such as NEP 2020, SOAR (Skilling for AI Readiness), and Skill India Digital are recognized as foundational for the country's development, though true transformation will require deeper alignment across academic institutions, industry requirements, and government policies.
