Generative AI (GenAI) is poised to reshape India’s workforce and economic landscape by 2030, according to the EY India report, ‘How much productivity can GenAI unlock in India? The AIdea of India: 2025’.
The report predicts that AI adoption could transform 38 million jobs, driving a 2.61% productivity boost to the Indian economy through gains in the organised sector.
An additional 2.82% productivity increase could be achieved by extending GenAI adoption to the unorganised sector.
GenAI has the potential to revolutionize every job, unlocking significant productivity and economic benefits, said the report.
The report highlights that 24% of tasks across industries are ripe for full automation, while another 42% can be augmented by AI, freeing up 8-10 hours per week for knowledge workers. The services sector is expected to see the largest productivity gains due to its higher labor-to-output ratio, while manufacturing and construction will experience a more modest impact.
Talent Shortages and Adoption Challenges
Based on a survey of over 125 C-suite executives, The EY report reveals that a lack of skilled talent remains a critical barrier to AI adoption. Only 3% of Indian enterprises have the in-house expertise and resources to fully leverage AI, while 97% of executives identify talent shortages as a primary obstacle.
Rajiv Memani, Chairman and CEO of EY India, said “GenAI is transforming India’s economic landscape by unlocking unprecedented opportunities across sectors. This revolution will fundamentally reshape jobs, driving productivity and innovation. Building talent pipelines and prioritising upskilling must be at the forefront of every organisation. Through public-private collaborations and investments in talent development, India can emerge as a global hub for AI-skilled talent.”
Mahesh Makhija, Technology Consulting Leader at EY India, added, “In sectors like financial services, healthcare, and retail, AI will redefine core processes such as customer acquisition, operations, and service delivery. Meanwhile, IT/ITeS and BPO industries will undergo more dramatic transformations. Next-generation industries like biotech, advanced manufacturing, and renewables have the potential to leapfrog to AI-first business models. To maximize economic growth, India must focus on AI policy, compute infrastructure, research, and address challenges in governance, intellectual property rights, and data protection.”
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