India need not fear AI-driven job losses as workforce adapts: IT secy S Krishnan

India need not worry about job losses due to artificial intelligence (AI), as workforce training is equipping people for emerging job roles, said S Krishnan, secretary, Ministry of Electronics and Information Technology.

He said AI's potential across various sectors could boost productivity in industries like manufacturing while also creating engaging job opportunities for the youth.

“We, at least in India, don’t have to fear job losses as much—which is typically a western fear—because I don't think we have as many white-collar jobs to lose. Also, given the STEM (science, technology, engineering, mathematics)-level training of our students, we have the potential to leverage that, and see newer kinds of jobs and really contribute to what we have,” Krishnan said at the second edition of Startup Mahakumbh on Thursday.


He stressed the importance of developing foundational models in India while acknowledging the debate over the high costs of building one.

“It needs to focus on issues relevant to India, in terms of the number of languages spoken and how to make it relevant across the country. It could also focus on specific sectors and areas that are important to the country," he said.

On Wednesday, OpenAI CEO Sam Altman had said that India was emerging as a global leader in AI adoption, with an unprecedented surge in innovation and creativity.

In January, the Economic Survey for 2024-25 highlighted that the rapid advancement of AI technologies presented both “unprecedented opportunities and significant challenges” for labour markets worldwide. It called for “robust institutions” to be built to minimise the impact of AI on jobs in “labour-rich” India.

The survey pointed out that adoption of AI by corporations could lead to taxation of profits derived from the replacement of labour with technology, if needed. It adopted a cautious tone while debating benefits of AI implementation across sectors.

Indian AI startups raised $747 million in 2024, down 26% from the previous year, but the number of deals in the segment increased to 121 from 78 in 2023, as per data from Venture Intelligence.

AI can play a crucial role in governance-related applications and enhancing efficiency in manufacturing, aligning with the government's focus on strengthening India's manufacturing sector, according to Krishnan.

“The question is whether industrial machinery can be retrofitted, data can be collected through IoT devices and then used to enhance production quality, improve decision-making in the manufacturing process and speed up the entire thing,” he said.