Inside India newsletter: AI is exposing cracks in India’s growth story as it hits high-paying IT jobs

ai is exposing cracks in india's growth story by hitting high-paying it jobs, according to bernstein. the research firm wrote an open letter to prime minister modi warning of a deepening employment crisis. for two decades, 10-15 million indians in it and bpo anchored the aspirational middle class — buying homes, taking flights, driving consumption. "gen ai now challenges that template," bernstein said. net hiring by india's top five it companies dropped by around 7,000 in the financial year ended march 2026, per analyst sushovon nayak. tcs laid off 12,000 last july and plans to hire just 25,000 fresh graduates this year versus an average of 40,000. cognizant's 'project leap' for ai transformation includes job cuts — up to 4,000 people could be laid off, according to a mint report. close to 45% of india's workforce still depends on agriculture, which contributes 15-16% of gdp. "without job creation, india's consumption-led economy will struggle to grow," said shumita sharma deveshwar of globaldata ts lombard. it minister ashwini vaishnaw called the disruption a "real challenge" but said the solution is upskilling.