Chief Economic Adviser V Anantha Nageswaran, speaking at the Economic Survey press briefing, said India faces significant skilling and structural challenges as artificial intelligence adoption accelerates.
He said employers place the highest value on foundational and soft skills such as engagement, self-efficacy, adaptability, management skills and working with others, while technology skills and digital literacy rank lower, highlighting a mismatch in current education priorities.
Nageswaran said several high-skill, hands-on sectors remain understaffed, including eldercare and nursing, public health outreach, culinary arts, early and special needs education, environmental restoration and advanced tool and die manufacturing.
He also flagged structural challenges linked to AI, including high data centre resource consumption, large financial requirements for AI development, risks to labour markets, constraints on hardware access due to geopolitics, the need for data localisation to create domestic value, and continued dependence on foreign AI models for use in public administration and critical sectors.
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