AI creates 51,000 more jobs than it cuts in India, Nomura finds

Artificial intelligence is proving to be a net job creator in India so far, according to fresh analysis from Nomura. The report, part of the bank's Asia Economic Monthly, found that AI-related hiring in the country reached 83,100, while documented layoffs and attrition linked to the technology stood at 31,921 — a net gain of over 51,000 positions.

India recorded the largest absolute impact from AI among the Asian economies studied, both in terms of job losses and new hiring. Nomura attributed this to the country's large workforce and its role as a global back-office hub, making it a key testing ground for AI's effect on employment.

However, the overall positive numbers mask a growing divide in the labour market. The report points to a two-tier system where demand for experienced and senior professionals remains relatively strong, but entry-level hiring is weakening. An ICRIER survey of 651 Indian IT firms cited by Nomura found that 55% of companies reported a decline in entry-level recruitment, compared with 25% for mid-level roles and 14% for senior positions.

Routine tasks typically handled by junior staff — such as quality assurance testing, coding, customer service, and banking back-office operations — are increasingly being automated. The impact is visible more in reduced campus hiring than in mass layoffs. Staffing firm Xpheno's estimate, referenced in the report, shows net hiring by Indian IT companies falling from 600,000 in FY22 to 140,000 in FY26.

Most new AI-related jobs are concentrated in the technology sector, with over 90% of such roles in Nomura's Asian sample coming from tech. In India, hiring is largely for AI data annotation and linguistics work.

Nomura cautioned that the technology is still in its early stages, and the full labour-market impact may take years to unfold. While the aggregate result is positive, the report notes there are "many disruptions beneath the surface."