Generative AI to Transform 38 Million Jobs in India by 2030, Boosting Productivity and Economic Growth

Generative AI Set to Transform India's Workforce and Economy

A recent report by EY India, titled 'How much productivity can GenAI unlock in India? The AIdea of India: 2025', predicts that Generative AI (GenAI) will revolutionize India's workforce and economic landscape by 2030 1

1

2

2

. The study forecasts that GenAI adoption could transform 38 million jobs, potentially boosting the country's economic productivity by up to 5.43% 1

1

2

2

3

3

.

Productivity Gains Across Sectors

The report highlights significant productivity enhancements across various industries:

• 24% of tasks across sectors are suitable for full automation
• 42% of tasks can be augmented by AI
• Knowledge workers could save 8-10 hours per week
• Call center management may see an 80% productivity boost
• Software development could experience a 61% increase in productivity
• Content development and distribution may grow by 45%
• Customer service and sales/marketing sectors could see 44% and 41% improvements, respectively 1

  1

  2

  2

  3

  3

The services sector is expected to benefit the most due to its high labor share in gross output. Financial services, healthcare, and retail are predicted to undergo significant transformations in processes such as customer acquisition, operations, and service delivery 1

1

.

Adoption Challenges and Talent Shortages

Despite the promising outlook, the report identifies several challenges:

• Only 3% of Indian enterprises currently possess sufficient in-house talent to fully utilize AI capabilities
• 97% of executives cite lack of skilled talent as a critical barrier to AI adoption
• Only 15% of surveyed enterprises have implemented GenAI in full-scale production
• 36% of enterprises have yet to commence any experimentation with GenAI 1

  1

  2

  2

  3

  3

Rajiv Memani, Chairman and CEO of EY India, emphasizes the need for building talent pipelines and prioritizing upskilling to harness GenAI's potential 2

2

.

Cost Reduction and Accessibility

The report notes positive developments in AI deployment costs:

• An 80% reduction in foundational AI model costs over the past two years
• Deployment costs as low as INR 120 per hour, making AI increasingly accessible for small and medium enterprises (SMEs) 1

  1

  3

  3

Mahesh Makhija, Technology Consulting Leader at EY India, suggests that falling costs and better ROI frameworks present an opportunity for India to position itself as a global leader in AI 1

1

.

Sector-Specific Impacts and Data Readiness

The report provides insights into sector-specific productivity gains:

• IT/ITeS sector: 19% productivity increase
• Healthcare: 13% increase
• Banking/insurance: 8-9% increase
• Auto and pharma sectors: marginal 2% boost 2

  2

Data readiness varies among Indian enterprises, with only 3% reporting full preparedness for AI deployments, while 23% admit to having no state of data readiness 2

2

.

Future Outlook and Recommendations

To maximize the potential for economic growth, the report recommends focusing on:

• AI policy agenda
• Compute infrastructure
• AI research
• Addressing challenges in responsible governance
• Intellectual property rights
• Data protection 2

  2

  3

  3

By addressing these areas and fostering public-private collaborations, India has the potential to emerge as a global hub for AI-skilled talent and innovation 2

2

.