India needs a jobs toolkit to arm its youth for the AI-infused economy

Only about half of India’s roughly 200 million people in their 20s are employed. Nearly half of the employed degree-holders work in tiny household enterprises. One in five graduates remains unemployed even in their late 20s. Without English proficiency, other skills and access to metropolitan networks, getting a decent private-sector job is hard for most.

Yet, plenty of jobs exist. And there will be new jobs for those who can complement technology. Those with expertise in inherently human skills such as communication and coordination, negotiation and judgement, manual dexterity, or empathy, will be valued highly.

While eroding routine work like data entry and basic coding, automation and AI are increasing the productivity of workers in tech-complementary occupations. Recently, IMF researchers analysed 700 million global online job postings and found that AI is generating opportunities for people with AI tools, with expertise such as prompt engineering or AI agents, and the ability to connect AI with proprietary internal data and domain knowledge.

Unfortunately, our education system does little to equip the average youth with domain knowledge and judgement skills. Our society looks down upon electricians and plumbers although demand for such professionals is likely to remain high globally.

Policy can help. First, we need an overhaul of education and examinations, shifting from memory testing to domain knowledge, problem-solving, English fluency and AI literacy.

This begins with redesigning teacher training. Using the Digital Infrastructure for Knowledge Sharing platform, trainers could run domain courses and AI-complementary lessons for teachers. Classrooms could tackle problems faced by local firms and communities, identified through local bodies and industry groups.

Second, skills training must be co-designed with employers. Industry bodies should help set curricula, supply trainers and offer apprenticeships, with colleges granting credit for work-based learning. Courses should be refreshed as technology changes, with industry-validated assessment.

Unemployed graduates need short-term job-readiness programmes. AI fluency lets anyone serve firms worldwide, but only if they have the right skills. The government should act as a catalyst for the AI-complementary skilling initiative.

Finally, the government should facilitate internationally recognised certification in trade skills and care work. The world faces a shortage of electricians, plumbers, welders, and caregivers. Even if India’s trade agreements ease mobility norms, workers would still need upfront funds to train and travel.

The government can facilitate globally accepted skills-training certification in these sectors. As the social status and earnings in these sectors rise, society will reappraise these professions.

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