The India Skills Report 2026: The Future of Work

The India Skills Report 2026, themed The Future of Work: Gig Workforce, Freelancing, AI-Supplemented Workforce, Remote Work & Entrepreneurship, highlights a significant shift in India’s labor market toward flexibility, digital-first roles and human-AI collaboration. The report, which surveyed over 1,000 organizations, indicates that India is becoming a global talent hub, holding 16% of the world’s AI talent and experiencing a rise in overall employability to 56.35%. This transformation is supported by national policies like NEP 2020 and a maturing digital infrastructure that allows work to move beyond traditional office settings into tier-2 and tier-3 cities.

Key Insights 

• Geographic Coverage: The study covered 20 states and 3 Union Territories in India and the data was gathered from organizations across 7 different industries.
• National Employability Rate: Overall employability in India rose to 56.35% in 2026, up from 54.81% in 2025.
• Gender Milestone: Female employability (54%) surpassed male employability (51.5%) for the first time.
• Global AI Talent: India currently holds approximately 16% of the world’s AI talent pool. There are over 600,000 AI professionals currently in India.
• Indian AI Market Value: The local AI market is projected to reach $17 billion by 2027.
• Hiring Intent: Employer hiring intent for FY 2026–27 is 40%, a significant increase from 29% the previous year.
• GenAI Adoption: Over 9 in 10 Indian employees are already using Generative AI tools.
• Global Job Displacement: Estimates suggest 92 million jobs may be displaced globally by 2030 due to automation.
• Global Job Creation: Approximately 170 million new positions are expected to be created globally by 2030.
• Permanent Employment: 72% of India’s workforce remains in permanent roles. While flexible roles, including gig work, now account for 16% of the workforce.
• Projected Gig Workers: India’s platform-based gig segment is expected to reach 90 million workers by 2030.
• Remittances: Remittances from Indian professionals abroad exceeded $100 billion in 2025.
• GCC Contribution: Global Capability Centres (GCCs) in India employ 2 million professionals and contribute $46 billion in annual exports.
• AI Use in IT/Gig sectors: Over 40% of India’s IT and gig workforce uses AI tools for automation and analytics.
• AI Hiring Adoption: 70% of IT and 50% of BFSI (Banking, Financial Services, and Insurance) organizations use AI in recruitment.
• Indian Startup Ecosystem: India now has over 150,000 startups.
• Salary Expectations: Most candidates are now targeting a salary bracket of $40,000–$60,000 per year.
• AI Job Targets: India aims to create 4 million new AI-related jobs by 2030.
• Skill Shift Forecast: Employers expect nearly 1 in 5 roles to change meaningfully by 2030.

Conclusion

The 2026 report concludes that India is successfully navigating a decisive reset in the world of work by aligning its massive demographic dividend with rapid technological adoption. While traditional hierarchies are giving way to decentralized, platform-based networks, the report emphasizes that AI is redistributing work rather than simply replacing people. To sustain this momentum, India must continue to prioritize curriculum reform, inclusive growth in tier-2 and tier-3 cities and the ethical integration of AI to ensure that progress remains sustainable and provides dignity for all citizens.

You can check out the full report here.