Topped by the Unites States, the Index evaluated how effectively countries can develop, align and utilize skills in an AI-driven global economy.
Key findings related to India
Strengths
- Future of Work Readiness (Rank: 5th): India's labor market is highly prepared to adapt to AI, digital, and green transitions.
- Economic Transformation (Rank: 14th): Backed by rapid GDP growth, India has the strong economic fundamentals needed to convert skills into innovation and productivity.
- Demographic Advantage: Boasting the world’s largest IT workforce (5.8 million) and a massive youth population, India possesses unmatched scale for future growth.
Weaknesses & Challenges
- Skills Alignment (Rank: 18th): There is a growing mismatch as higher education (including IITs, IIMs and AIIMS) is struggling to produce graduates with the AI, digital, and soft skills employers actually need.
- Without significant upskilling and educational reforms, India risks missing out on the full economic benefits of its youth population.
- Academic Readiness (Rank: 22nd): Traditional educational institutions are adapting too slowly to fast-changing global labor market demands.
- Brain Drain: India faces a massive talent retention challenge, with nearly 1 million students expected to study abroad by 2030.
- Other: Declining employer satisfaction in Indian Engineering & Technology institutions.
