The Fourth Industrial Revolution, in which artificial intelligence (AI) affects the economic and social systems of our world, is a game changer for labour markets across the globe. With its large and youthful human capital, India is at a crossroads. In this study, we explore the implications of AI for the Indian workforce, considering its potential both as a force of disruption and as a source of unprecedented growth. This work is about taking the discussion beyond the old automation lens towards how AI is changing the essential skills and competencies taxonomy of the future. Using a mixed-method approach, combining secondary data analysis of contemporary industry vision papers (NASSCOM, WEF, McKinsey) and government initiatives, this study identifies critical emergent skill clusters—AI Literacy, Cognitive Flexibility, Socio-Emotional Intelligence, and Digital Dexterity. The paper suggests that India can capitalise on this demographic dividend only through a complementary approach of large-scale, multi-sectoral skilling, educational syllabus transformation, and proactive policy interventions in creating a habit of lifelong learning. The conclusion provides a strategic roadmap for India to both address the challenges posed by job displacement due to AI and gain the leading edge in the upcoming AI-driven economy.
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Ayush Kumar
Sharda University
International Journal of Research In Commerce and Management Studies
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Ayush Kumar (Wed,) studied this question.
synapsesocial.com/papers/68de79615b556a9128e1a787 — DOI: https://doi.org/10.38193/ijrcms.2025.7501