AI Is Creating Jobs in India-So Why Are Freshers Losing Out?

Kalpana Kanungo - Mumbai Bureau Aug 24, 2026 2,000 Views

A recent Nomura report reveals that artificial intelligence creates more jobs than it cuts in India, achieving a net-positive hiring ratio of 2.6 to 1. However, this growth has triggered an entry-level hiring squeeze, as automated systems replace routine tasks and leave fresh graduates struggling to secure traditional entry points.

NEW DELHI — Artificial intelligence is generating more employment opportunities than it is eliminating across India, positioning the country as a primary global test case for automated workforce transformation. However, the economic benefits are deeply skewed, presenting significant hurdles for entry-level applicants and fresh graduates.

According to a comprehensive research report published by Nomura Holdings titled Beyond the Headlines: AI Has Added Jobs in Asia – So Far, India recorded 83,100 AI-related hires against 31,921 layoffs and job adjustments linked to artificial intelligence. This yields a net positive ratio of approximately 2.6 AI-related jobs created for every position lost.

The K-Shaped Employment Split and Fresher Squeeze

While aggregate metrics indicate robust macroeconomic expansion in specialized technology sectors, labor market analysts point to a structural divergence. The specific roles generated by artificial intelligence deployment—requiring advanced capabilities in machine learning, retrieval-augmented generation (RAG), and system engineering—do not align with the routine, entry-level positions traditionally occupied by recent graduates.

Consequently, companies are increasingly adjusting to automation through "silent hiring" reductions rather than mass layoffs. Instead of firing experienced personnel, firms have scaled back campus recruitment and entry-level intake, disproportionately affecting young job seekers.

According to official research data and industry analytics:

Net Employment Ratio: Nomura's analysis of 69 corporate cases across Asia highlights India leading absolute job additions with 83,100 AI-related hires.
Entry-Level Impact: Industry surveys indicate over 55% of IT and technology firms have reported a visible contraction in entry-level hiring.
Targeted Vulnerability: Routine back-office operations, junior coding roles, data entry, and basic customer support functions face the highest exposure to chatbot automation.
Senior Resilience: Demand remains exceptionally resilient for experienced professionals who combine technical fluency with deep domain expertise and stakeholder management skills.

Official Sources Section

Nomura Holdings Economic Research: Comprehensive cross-Asian labor market analyses and institutional impact reports on artificial intelligence.
Ministry of Electronics and Information Technology (MeitY): National digital transformation strategies, workforce statistics, and technology sector reports.
Indian Council for Research on International Economic Relations (ICRIER): Empirical studies tracking IT sector employment trends and fresher recruitment dynamics.

Quote Section

According to findings published in the Nomura economic research report regarding structural employment changes:

"The jobs being created by AI are not necessarily the jobs being lost to AI—and that is particularly bad news for young workers and fresh graduates navigating an increasingly demanding labor market."

Why It Matters

For fresh graduates, technical training institutions, and national policymakers, the evolving employment landscape underscores an urgent need for curriculum reform. As routine entry-level coding and administrative tasks are absorbed by automated systems, preparing upcoming cohorts for applied engineering, advanced problem-solving, and specialized system integration is vital to prevent long-term youth underemployment.

Key Facts at a Glance

Total AI Hires Recorded: 83,100 positions in India.
Displaced or Affected Roles: 31,921 positions.
Creation Ratio: Approximately 2.6 new jobs for every position altered or lost.
Primary Squeeze: Campus recruitment and entry-level positions experiencing significant deceleration.

FAQ Section

Does artificial intelligence create or destroy more jobs in India?

According to the Nomura report, AI has created more jobs than it has cut, registering 83,100 AI-related hires against roughly 31,921 job losses.

Why are fresh graduates losing out despite net job growth?

The new roles created by AI require specialized, advanced technical skills, whereas automation is primarily replacing routine entry-level and back-office tasks, leading companies to scale back campus hiring.

Which sectors have experienced the highest AI-related job disruptions?

Financial services and technology sectors account for the majority of AI-linked adjustments, particularly in back-office reconciliation, compliance, and basic coding.

Where can stakeholders review detailed labor market research?

Institutional reports and economic updates are published regularly through research portals like Nomura Holdings and economic policy think tanks.