India’s Youth Dividend in the AI Era

Why in News?

The India-AI Impact Summit 2026 commenced with a powerful vision, placing India's youth at the heart of the nation's Artificial Intelligence (AI) journey, far from a futuristic dream, the Summit spotlights AI as a transformative force already reshaping jobs and livelihoods.

What about India-AI Impact Summit 2026?

• About the Summit – It is a five-day global event held in New Delhi.
• As the first global AI summit hosted in the Global South, it focuses on transitioning from theoretical dialogue to measurable, real-world impact through the theme Welfare for all, Happiness of all.
• 3 foundational pillars/Sutras -  People, Planet, and Progress.
• 7 Chakras (working groups)
  • Human Capital
  • Inclusion for Social Empowerment
  • Safe & Trusted AI
  • Science
  • Resilience, Innovation and Efficiency
  • Democratising AI Resources
  • AI for Economic Growth & Social Good
• The Summit marks a shift from passive learning to active participation, linking education with industry needs.
• Focus – Boosting employability, enhancing productivity, and bridging classrooms to AI‑driven careers.
• Platforms – Innovation challenges, startup pitches, live demos → connect youth skills with market demand.
• Impact – Catalyst for job creation in Animation, VFX, Gaming, Comics, projected to generate ~2 million jobs by 2030.
• Big Picture – By blending global insights, youth skilling, and job creation, India is turning its demographic dividend into a future‑ready AI workforce.

Why is AI considered a major opportunity for India’s talent pool in the global economy?

• India’s status – India has the largest youth population in the world, with over 65% of its population under the age of 35, positioning this demographic powerhouse as an engine of economic momentum.
• AI Pathway to job, skill – AI is reshaping jobs, boosting productivity, and driving inclusive growth. For India’s youth, it is a pathway to future-ready skills and employment, combining innovation with nationwide opportunities.
• Rising Demand for AI Skills and Jobs – Between January 2023 and March 2025, AI-related job postings in South Asia increased from 2.9% to 6.5% of all vacancies, with demand for AI skills growing 75% faster than for non-AI roles.
• Labour Market Transformation – India’s labour market is shifting to reward digital fluency, advanced technical skills, and interdisciplinary expertise.
• Policy Push for AI-Ready Youth Skills – Recognising AI as a strategic employment driver, the Union Budget 2026–27 reinforced
  • Focus on Orange Economy (Animation, Gaming, Digital content, Immersive media).
  • Support for IICT, Mumbai, to establish AI Content Creator Labs in 15,000 schools & 500 colleges.
  • Projected 20 lakh new jobs in creative & AI‑driven sectors.
  • Education to Employment and Enterprise Standing Committee to assess how AI and related tech affect jobs and skill requirements, aiming to bridge education, work and enterprise demand.
• Democratising Access to AI Infrastructure – India is making AI resources—compute, datasets, and models—available nationwide, ensuring opportunities reach talent beyond metropolitan hubs.
• Plans to expand over 58,000 GPUs reinforce a national commitment to inclusion, responsible innovation, and broad-based participation in the AI economy. Example: IndiaAI Mission.

What about the National Efforts to Build a Skilled AI-Ready Talent Pool?

• Building India’s AI Talent Pipeline – India is creating a multi‑tiered AI talent system across schools, vocational training, higher education, and professional upskilling.
• This structure ensures broad access, regional equity, and industry alignment, empowering youth with foundational to advanced AI skills for ethical innovation and active participation in the AI economy.
• Foundational AI Literacy in Schools
• National Education Policy (NEP) 2020 – Prioritises digital and AI literacy, embedding computational thinking and AI concepts across all educational levels.
• AI & Computational Thinking (AI & CT) – Starts from Grade 3, focuses on problem solving, algorithms, and ethical AI.
• YUVAi (Youth for Unnati with AI) – Empowers Classes 8-12 students to design practical AI solutions across thematic sectors.
• YUVA AI for All – Offers a free national AI literacy course in 11 languages, targeting 1 crore citizens for foundational AI proficiency.
• Vocational and Industry-Aligned Training
• Skill India Mission & SOAR (Skilling for AI Readiness) Initiative – AI integrated into vocational training; 1.34 lakh enrolled with Microsoft, HCL, NASSCOM partnerships.
• FutureSkills Prime Initiative – Upskilling professionals in AI, big data, cloud, etc.; aligned with national standards; 25.3 lakh learners, 3,000+ courses.
• Skill India Digital Hub (SIDH) – Single platform for AI/ML courses, from beginner to advanced, accessible to diverse learners nationwide.
• Advanced AI Talent & Research Ecosystem
• IndiaAI FutureSkills – Fellowships for 500 PhDs, 5,000 postgraduates, 8,000 undergraduates, plus specialised courses to build elite AI expertise.
• IndiaAI Data & AI Labs – 27 labs in Tier 2/3 cities, 174 approved in ITIs/Polytechnics, decentralising resources, enabling hands-on training, and spreading AI capabilities beyond metros.

What are the Global Indicators of India’s Talent-Pool Leadership in AI?

• Innovation Beyond Metros – Over 50% of India’s startups now emerge outside metropolitan cities, proving that innovation is spreading nationwide and is not limited to metros & India, on the path of the vision - Viksit Bharat by 2047.
• High penetration of AI skills – India’s AI skills are 2.5 times higher than the global average (Stanford Global AI Index Report 2025).
• Widespread enterprise adoption – 87% of enterprises in India are actively using AI solutions (NASSCOM AI Adoption Index)
• Demographic advantage – India possesses one of the world’s largest pools of digitally adaptable youth, driving participation in AI learning and innovation.
• Guinness World Record – India set a Guinness World Record with 2.5 lakh AI Responsibility Pledges in 24 hours.
• Led by IndiaAI Mission & Intel India, the campaign mobilised students and citizens.
• Promoted ethical, transparent, and accountable AI use (privacy, misinformation, accountability) & positioned youth as stewards of trustworthy AI.

What lies ahead?

• India’s youth dividend is emerging as a defining strength in the age of Artificial Intelligence.
• Through sustained policy support, large-scale skilling initiatives & democratised digital infrastructure are turning demographic advantage into a globally competitive talent pool.
• The India AI Impact Summit 2026 showcased youth-led innovation, responsible AI adoption, and industry alignment, driving inclusive growth.
• As India advances towards a Viksit Bharat, empowering its young population with AI capabilities will remain central to long-term productivity, resilience, and global leadership.

Reference

PIB | India’s Youth Dividend in the AI Era