1. Demographic Advantage
- Over 65% of India’s population is under 35
- Large digitally skilled workforce ready for AI-based industries
2. Digital Infrastructure
- Internet users crossed 100 crore in 2025
- Over 400 million 5G users
- Optical Fiber network expanded to 42.36 lakh route km
- Government acquired 38,000 GPUs to boost AI capacity
National Data Centres expanded to around 100 PB storage capacity
3. Startup Ecosystem
- Over 2 lakh DPIIT-recognised startups
- AI startups active in Indian language models, healthcare, generative AI, and advanced analytics
AI and Employment Transformation
AI is reshaping India’s labour market positively:
- AI-related job postings in South Asia doubled (2023–2025)
- India leads globally in AI talent hiring (≈33% annual hiring rate)
- AI roles offer 28% wage premium compared to regular jobs
- 87% of enterprises actively using AI solutions (NASSCOM Index)
Southern India — especially Bengaluru and Hyderabad — is emerging as a major AI job hub.
AI is creating new roles such as:
- AI trainers
- Prompt engineers
- Safety testers
- Data scientists
Rather than replacing jobs, AI is augmenting human productivity.
National AI Programmes
The Ministry of Electronics and Information Technology (MeitY) has launched the National Program on Artificial Intelligence, focusing on:
- National Center on AI
- Data Management Office
- Skilling in AI
- Responsible AI
Other key initiatives include:
- YUVAi (Youth for Unnati with AI)
- FutureSkills Prime (MeitY + NASSCOM)
- Skill India Mission (SOAR initiative)
- IndiaAI FutureSkills under IndiaAI Mission (2024)
- BHASHINI, enabling AI in 36+ Indian languages
The government aims to empower 1 crore citizens with foundational AI skills under “AI for All”.
AI and Inclusive Growth
AI adoption is expected to:
- Improve productivity across services (55.3% of GVA)
- Reduce skill gaps
- Enhance global competitiveness
- Promote ethical and responsible AI use
India’s approach balances technology and humanity — ensuring AI supports job transformation rather than job displacement.
Exam-Oriented MCQs
Q1. India ranks at which position in Stanford University’s 2025 Global AI Vibrancy Ranking?
(a) 1st
(b) 2nd
(c) 3rd
(d) 4th
(e) 5th
Q2. India’s AI market is projected to reach approximately what value by 2032?
(a) USD 50 billion
(b) USD 75 billion
(c) USD 100 billion
(d) USD 131.31 billion
(e) USD 150 billion
Q3. According to the NASSCOM AI Adoption Index, what percentage of enterprises in India are actively using AI solutions?
(a) 65%
(b) 72%
(c) 80%
(d) 87%
(e) 92%
Q4. The National Program on Artificial Intelligence is implemented by which ministry?
(a) Ministry of Finance
(b) Ministry of Electronics and Information Technology
(c) Ministry of Education
(d) Ministry of Skill Development and Entrepreneurship
(e) Ministry of Commerce and Industry
Q5. The BHASHINI initiative primarily focuses on:
(a) AI hardware manufacturing
(b) Cybersecurity
(c) Multilingual AI and language technology
(d) Blockchain development
(e) Satellite communication
Q6. AI-related roles are reported to offer approximately what wage premium compared to regular digital jobs?
(a) 10%
(b) 15%
(c) 20%
(d) 28%
(e) 35%