Technology

Nearly 197 million Indian Workers at Risk of Automation, 46 million Could Benefit from AI, Study Finds

By Livemint

A new study using India’s labour market data shows that almost 197 million workers are employed in jobs with a high share of routine tasks that could be automated, while about 46 million work in occupations where artificial intelligence (AI) could boost productivity. The analysis, titled *AI, Automation and India’s Workforce: Who Gains, Who’s Exposed, and How Policy Can Shape the Future*, was released on Sunday by Chief Economic Adviser to the Government of India V Anantha Nageswaran. It was authored by Vidya Mahambare, chairperson of the Centre for Finance and Economics Research at the Great Lakes Institute of Management, Chennai; Vivek Jadhav, assistant professor of economics at the Institute of Management Technology, Ghaziabad; and Vishnu Venugopalan, an Indian Administrative Service officer serving as Additional Secretary to the Tamil Nadu Chief Minister.

The report, which draws on data from the Periodic Labour Force Survey (PLFS), estimates that 11.4 % of India’s workforce faces the risk of job substitution due to AI, while 7.6 % could see productivity gains from the technology. Kerala, Haryana, Maharashtra and Tamil Nadu have the highest shares of workers in occupations where AI is more likely to complement human labour and improve productivity, with Kerala leading at 14.4 %, followed by Haryana at 11.5 %, Maharashtra at 11.1 % and Tamil Nadu at 10.7 %. These occupations include healthcare professionals, teachers, scientists, engineers and managers, whose work involves expertise, judgement and responsibility that AI can assist rather than replace.

In contrast, Uttar Pradesh, Bihar, Jharkhand and Madhya Pradesh face a dual challenge: lower exposure to AI‑related productivity gains and fewer workers employed in occupations where the technology could complement human skills.

The Centre for Finance and Economics Research recommends targeted reskilling initiatives, stronger AI literacy and wider access to training that combines technical expertise with communication, critical judgement and problem‑solving skills. It also calls for expanding employment opportunities in sectors such as healthcare, education, elderly care and skilled trades, where India faces labour shortages and human interaction remains essential. For states with lower AI exposure, the priority is to create pathways into higher‑productivity employment. The report stresses that workforce preparation must begin before the effects of AI become evident in employment data, rather than waiting for job losses to materialise.