{"id":109712,"date":"2026-04-30T01:08:52","date_gmt":"2026-04-30T01:08:52","guid":{"rendered":"https:\/\/christiancorner.us\/index.php\/2026\/04\/30\/ai-is-exposing-cracks-in-indias-growth-story-as-it-impacts-high-paying-it-jobs\/"},"modified":"2026-04-30T01:10:00","modified_gmt":"2026-04-30T01:10:00","slug":"ai-is-exposing-cracks-in-indias-growth-story-as-it-impacts-high-paying-it-jobs","status":"publish","type":"post","link":"https:\/\/christiancorner.us\/index.php\/2026\/04\/30\/ai-is-exposing-cracks-in-indias-growth-story-as-it-impacts-high-paying-it-jobs\/","title":{"rendered":"AI is exposing cracks in India&#8217;s growth story as it impacts high-paying IT jobs"},"content":{"rendered":"<p>\n<\/p>\n<div id=\"SpecialReportArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"SpecialReportArticle-articleBody-6-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div data-test=\"WildCardEmbed\">\n<div class=\"WildcardEmbed-wrapper\">\n<style><!(CDATA(<!(CDATA(\n\t.ido-promo__content {\n\t\tbox-sizing: border-box;\n\t\twidth: 100%;\n\t\tbackground-color: #f0f0f0;\n\t\tpadding: 2px 20px 2px 20px;\n\t\t\n\t\tfont-family: Lyon, Helvetica, Arial, sans-serif;\n    \tfont-size: 18px;\n   \t\tline-height: 1.66;\n\t}\n))))><!(CDATA(>))><\/style>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p><em>Hello, I am Priyanka Salve, writing to you from Singapore.<\/em><\/p>\n<p><em>Welcome to the latest version of <\/em>&#8220;<em>inside india<\/em>&#8220;<em> &#8211; Your one-stop destination for stories and developments from the world&#8217;s fastest growing major economy.<\/em><\/p>\n<p><em>Over the past two decades, India&#8217;s IT sector has been driving consumption, which in many ways has driven India&#8217;s growth story. But as AI forces IT companies to move away from volume hiring, it highlights a key gap that risks hindering economic growth: a lack of quality jobs.  <\/em><\/p>\n<p><em>read on!<\/em><\/p>\n<p><em>Any thoughts on today&#8217;s newsletter? <\/em><em>share them<\/em><em>  With the team.<\/em><\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a rel=\"nofollow\" target=\"_blank\" id=\"headline0\"\/>big story<\/h2>\n<div class=\"group\">\n<p>Some global events have affected India&#8217;s famous growth story.  <\/p>\n<p>Even as conflict in the Middle East disrupts global supply chains, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.imf.org\/-\/media\/files\/publications\/weo\/2026\/april\/english\/text.pdf\">IMF earlier this month<\/a> Confirming its forecast, it said that India will remain the fastest growing major economy in 2026. <\/p>\n<p>But last week, global equity research firm Bernstein wrote an open letter to Indian Prime Minister Narendra Modi, warning of a deepening employment crisis in the country, especially as artificial intelligence threatens quality jobs in the information technology sector. <\/p>\n<p>Jobs with relatively high wages and productivity have spilled over into real estate, education and services, making white-collar employment a major pillar of the country&#8217;s economic growth.<\/p>\n<p>Over the past two decades, the 10 million to 15 million Indians working in the IT services and business process outsourcing industry have formed the basis of &#8220;the aspirational middle class \u2013 buying houses, taking flights, increasing consumption,&#8221; Bernstein said. &#8220;General AI now challenges that template.&#8221; <\/p>\n<p>Experts said India&#8217;s IT sector competed with global rivals because of the huge talent pool at relatively low costs that gave it an edge. But AI has tilted this equation away from labor arbitrage in favor of technological arbitrage first. The lack of quality jobs will put pressure on India&#8217;s growth story, which depends on the demographic dividend and domestic consumption. <\/p>\n<p>&#8220;Without job creation, India&#8217;s consumption-led economy will struggle to grow, limiting investment demand at a time when the export growth-led model is under threat globally,&#8221; Shumita Sharma Deveshwar, chief India economist at GlobalData TS Lombard, told CNBC.<\/p>\n<p>\u201cIndia has struggled to increase the share of manufacturing in the economy by shifting labor from farms to factories,\u201d he said, adding that the AI \u200b\u200bboom now poses a threat to jobs in both manufacturing and services.<\/p>\n<p>According to Bernstein, about 45% of India&#8217;s workforce is dependent on agriculture, which contributes only 15%-16% to its GDP. <\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a rel=\"nofollow\" target=\"_blank\" id=\"headline1\"\/>jobs ending<\/h2>\n<div class=\"group\">\n<p>In an interview with CNBC-TV18 during the AI \u200b\u200bSummit earlier this year, India&#8217;s IT Minister Ashwini Vaishnaw acknowledged that disruption of jobs in the tech sector is a big problem. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cnbctv18.com\/technology\/indias-sovereign-ai-models-now-competing-with-global-systems-says-ashwini-vaishnaw-19851793.htm?utm_medium=social&amp;utm_source=x&amp;utm_campaign=regular-editorial\">&#8220;The real challenge,&#8221;<\/a> But stressed that the solution lies in \u201cupgrading and reskilling the workforce\u201d. The Indian government hopes that AI will reshape the country&#8217;s IT sector.<\/p>\n<p>&#8220;Not all jobs are at risk of being replaced by AI, but the key issue is that most of the workforce lacks the skills to move into complementary roles that could benefit from AI,&#8221; said Alexandra Harman Prasad, chief economist at Oxford Economics. \u201cWeak overall education outcomes\u201d play a significant contributing role, he said.<\/p>\n<p>But even as AI-driven reskilling is gaining momentum with unclear prospects, jobs in the IT sector are already declining. <\/p>\n<p>IT firm <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-7\">knowledgeable<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>    Said on Wednesday that it has launched &#8216;Project Leap&#8217;, a new program for AI transformation, which not only includes <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cognizant.q4cdn.com\/123993165\/files\/doc_earnings\/2026\/q1\/earnings-result\/Q1-26-Earnings-Press-Release.pdf\">Re-skilling of workforce but also job cuts<\/a>. A report by Indian newspaper Mint said that 4,000 people could be laid off as part of the AI \u200b\u200bpush.<\/p>\n<\/div>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108298868\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>NEW DELHI, India &#8211; June 18: Leader of the Opposition in the Lok Sabha and party leader Rahul Gandhi poses for job aspirants during a mega job fair organized by the Delhi unit of the Congress and the Indian Youth Congress on the occasion of his 55th birthday, an event that is closely associated with one of Gandhi&#8217;s central political themes: unemployment, at the Talkatora Stadium in New Delhi, India on June 18, 2025. <\/p>\n<p>Hindustan Times | Hindustan Times | getty images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>\u201cHeadcount is being rationalized across the board,\u201d said Sushovan Nayak, senior research analyst at Mumbai-based Anand Rathi Institutional Equities. He said net hiring by India&#8217;s top five IT companies declined by about 7,000 in the financial year ending March 2026.<\/p>\n<p>According to local media reports, India&#8217;s largest IT firm, <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-9\">Tata Consultancy Services<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>which laid off 12,000 people last July, has plans <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.moneycontrol.com\/news\/business\/tcs-starts-fy27-with-25-000-fresher-offers-says-hiring-could-rise-if-demand-improves-13886670.html\">To make only 25,000 new appointments<\/a> There were 40,000 new hires graduating this year, compared to an average of 40,000 in the last three years.<\/p>\n<p>According to Nayak, over the last five years, gross hiring by IT companies averaged around 230,000, but in the fiscal year ending March 2026, they added around 170,000 jobs.<\/p>\n<p>Others in the industry are also seeing a clear shift in India&#8217;s IT industry, moving away from volume hiring. <\/p>\n<p>Experts said that before AI, India&#8217;s relatively low-cost talent was the key to growth in IT companies, but now these companies are focusing on increasing productivity.<\/p>\n<p>&#8220;FY26 saw a structural reset where companies focused on productivity-led growth rather than large-scale hiring,&#8221; Kapil Joshi, chief executive of IT staffing at Quess Corp., told CNBC. \u201cGrowth in the number of employees has slowed down, while revenues have remained stagnant,\u201d he said.<\/p>\n<p>According to data shared by staffing firms, traditional IT roles are being significantly expanded to include AI capabilities, which require exposure to larger language models, while IT companies are posting fewer entry-level vacancies.<\/p>\n<p>Since job creation in the IT industry has slowed down, experts are not very hopeful that India can create quality jobs in other sectors to fill the gap.<\/p>\n<p>&#8220;More than ten years of &#8216;Make in India&#8217; has yet to trigger a manufacturing renaissance,&#8221; Richard Rossow, senior adviser and chair of India and Emerging Asia economics at policy think tank CSIS, told CNBC. Like Bernstein, Rossow agrees that manufacturing is still a &#8220;relatively small part of the economy&#8221;, while basic agriculture remains the largest source of employment. <\/p>\n<p>Experts said India&#8217;s growing gig economy, which provides mostly low-value jobs, will not be able to compensate for quality jobs in services or manufacturing. <\/p>\n<p>Without creating new pools of quality jobs \u2013 or rapidly re-skilling its workforce \u2013 India risks facing a more fragile version of its growth story, where strong headline GDP hides rising unemployment.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\">need to know<\/h2>\n<div class=\"group\">\n<p><strong>Indian drugmaker Sun Pharma will buy US-based Organon in a deal worth $11.75 billion.<\/strong><br \/>the Indian <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2026\/04\/27\/indian-drugmaker-sun-pharma-to-buy-us-firm-organon-in-11point75-billion-deal.html\">The generic drugmaker will acquire all of Organon&#8217;s outstanding shares in an all-cash deal for $14 a share. With this acquisition, Sun Pharma will join the top 25 global pharmaceutical companies with revenues of $12.4 billion.<\/p>\n<p><strong>India-US trade deal remains unsigned even after months of talks<\/strong><br \/>The first tranche of the trade deal was expected to be finalized by mid-March, but negotiations are still ongoing, with the Iran war and the US court ruling against tariffs leaving room for fresh bargaining. Any delay beyond May in finalizing the deal could prove costly for India. <\/p>\n<p><strong>India and China face off for Russian oil as global energy supplies dwindle<\/strong><br \/>India and China, the world&#8217;s two leading oil importers, are competing for scarce global crude supplies as disruptions in the Strait of Hormuz and stalled peace talks between the US and Iran have weakened the market. They are now locked in a fierce fight over the limited supplies available primarily from Russia and, to a lesser extent, Saudi Arabia.<\/p>\n<p><strong>is coming <\/strong><\/p>\n<p>30 April: India&#8217;s fiscal deficit figures for the end of March.<\/p>\n<p>May 6: HSBC India Composite PMI for April.<\/p>\n<\/div>\n<div class=\"ArticleBody-googlePreferredSourceContainer\" data-module=\"GooglePreferredSource\" data-id=\"SpecialReportArticle-GooglePreferredSource-6\">Choose CNBC as your favorite source on Google and never miss a moment of the most trusted name in business news.<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Hello, I am Priyanka Salve, writing to you from Singapore. Welcome to the latest version of &#8220;inside india&#8220; &#8211; Your one-stop destination for stories and developments from the world&#8217;s fastest growing major economy. Over the past two decades, India&#8217;s IT sector has been driving consumption, which in many ways has driven India&#8217;s growth story. But<\/p>\n","protected":false},"author":1,"featured_media":109713,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[56],"tags":[4150,13482,2845,26959,7676,3939,2218,2396],"class_list":{"0":"post-109712","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bible-news","8":"tag-cracks","9":"tag-exposing","10":"tag-growth","11":"tag-highpaying","12":"tag-impacts","13":"tag-indias","14":"tag-jobs","15":"tag-story"},"_links":{"self":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/109712","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/comments?post=109712"}],"version-history":[{"count":1,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/109712\/revisions"}],"predecessor-version":[{"id":109714,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/109712\/revisions\/109714"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/media\/109713"}],"wp:attachment":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/media?parent=109712"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/categories?post=109712"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/tags?post=109712"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}