The demand for skills in artificial intelligence continues to grow across India. In September, 11.7% of Indian job postings explicitly demanded sound knowledge of artificial intelligence (AI) in their job descriptions, up from 10.6% three months ago and 8.2% a year ago.
AI opportunities are concentrated in the tech sector but are increasingly widespread. Nearly 39% of data and analytics roles now reference AI, compared to 23% in software development, 18% in insurance, and 17% in scientific research.
Demand for AI expertise is also rising in engineering, led by industrial (17%), mechanical (11%), and electrical engineering (9.2%) roles — indicating AI’s growing integration across technical disciplines. Meanwhile, India’s workforce continues its steady shift toward formal employment. As this structural transition unfolds, formal sector job creation is expected to outpace overall employment growth, keeping India’s job postings resilient compared to other global markets through both the post-pandemic boom and the recent slowdown.
Highlighting the data from a recent survey by Indeed, Callam Pickering, APAC senior economist, Indeed, said, “India ranks highly against job markets in other countries. Apart from India, only Singapore has a higher share of postings mentioning AI. It is clear that many employers across India have gone all-in on AI.” In September, Indian job postings on Indeed fell 0.8%, the sixth monthly decline this year, to be 16.2% lower than a year ago. Indian job postings are 69% above pre-pandemic levels but have fallen 22% since their peak in January 2023.
Posting Trends
Over the past three months, job postings have declined in more than 90% of occupations across India. A few sectors, however, managed to defy the downward trend — community and social service roles grew by 10.4%, while pharmacy postings rose by 9.9%. Software development also saw a modest increase of 0.4%. These gains were overshadowed by steep declines in several key sectors. Banking and finance recorded the sharpest drop at -25.5%, followed by education and instruction (-22.2%), security and public safety (-20.9%), and physicians and surgeons (-20.9%).
Mismatch of Skills
Job creation continues to soften, but job postings remain well above pre-pandemic levels. India’s formal sector continues to perform strongly, with more than enough jobs available to facilitate India’s ongoing economic transition. As AI reshapes hiring priorities, the demand for specialised, highly skilled professionals has intensified. Many employers are seeking proficient candidates in AI-related tools such as data analytics, and automation, skills that are not yet widely represented in the current talent pool.
India’s larger challenge is simply that there are often mismatches between the skills job seekers possess and the skills employers seek. Many companies in India are looking for highly skilled workers in tech or management; however, skill shortages remain common in India, particularly in higher-skilled segments.