Will Artificial Intelligence Lead to Unemployment? Evidence from India

The rapid development of Artificial Intelligence (AI) has triggered global debates about the future of employment. While concerns about technological unemployment remain widespread, recent developments in India suggest a more complex transformation of the labour market. Rather than eliminating jobs, AI appears to be reshaping skill requirements, generating new opportunities, and improving productivity across sectors. Drawing upon government data, policy initiatives, and industry reports, this research report examines the emerging relationship between AI adoption and employment trends in India. The findings indicate that expanding AI capabilities are accompanied by
growing demand for specialised skills, extensive reskilling initiatives, and new applications in governance, climate services, and the informal economy. These developments point to a model in which AI complements human labour and supports inclusive economic growth rather than causing widespread job loss.