India's AI Transformation on the Horizon

India stands at the brink of an extraordinary AI transformation, poised to revolutionize industries, empower the workforce, and solidify its leadership in the technology landscape. With the IndiaAI Mission committing over ₹10,000 crore to foster a multi-pronged AI ecosystem, significant investments in digital infrastructure, and a vast reserve of technical talent, the question arises: Is India ready to leapfrog into becoming the AI talent hub of the world?

The Demographic Dividend and Upskilling Imperative

India's demographic boom, with 64.8% of its population expected to be part of the working-age group by 2026, presents a unique opportunity. However, the education-employability gap, with only 51.3% of college final-year students being employable, underscores the urgent need for upskilling in emerging areas like AI literacy, prompt engineering, AI-augmented creativity, and data science.

Inclusive Policies for Women in STEM

India boasts the highest percentage of women graduates in STEM fields globally at 40%. Yet, only 14% secure STEM jobs, and fewer pursue postgraduate or doctoral studies. Inclusive policies and focused efforts are crucial to unlocking the full potential of women in shaping India's AI-driven future.

Corporate Upskilling in the Age of AI

As AI adoption accelerates, upskilling has become a top priority for corporates. The EY AIdea Report 2025 predicts that 38 million jobs in the organized sector will be transformed by 2030, necessitating new skill sets and evolved performance standards across roles.

Expectations from Budget 2025

Increased budget allocation to education, tax incentives for corporate upskilling, dedicated funds for AI research in higher education, and targeted funding for women, rural youth, and marginalized communities are critical measures expected from Budget 2025 to promote AI-related upskilling and ensure India's competitive edge in the global AI race.

(Neha Sharma is Partner – People Consulting, EY India. Views expressed are personal.)