AI skills surge places India on global map

At the CII Global Capability Centres (GCCs) Summit in New Delhi, Finance Minister Nirmala Sitharaman underscored India’s rise as a global Artificial Intelligence (AI) powerhouse, citing the latest Stanford AI Index 2024 report. The index reveals that India has led the world in AI skills penetration since 2016 and witnessed a staggering 263 per cent surge in AI talent concentration.

The Finance Minister highlighted the government’s multi-pronged approach to this transformation. Key initiatives include the establishment of AI Centres of Excellence, targeted PhD fellowships in AI for scholars at the top 50 NIRF-ranked institutions, and the rollout of India AI Data Labs across tier-II and tier-III cities. A prominent example is the flagship AI data lab launched at the National Institute of Electronics and Information Technology (NIELIT) in New Delhi. 

Connecting AI with broad-based skill development, the Minister lauded the PM Kaushal Vikas Yojana’s achievement of training 1.6 crore people, preparing a future-ready workforce for sectors such as healthcare, agriculture, and smart cities. Complementing this, she emphasised the critical role of Global Capability Centres; India now hosts over 1,700 GCCs employing more than 2.16 million professionals, with projections estimating this may rise to 2.8 million by 2030.

She urged the private sector and state governments to further expand GCC operations into tier-II and III urban centres and to streamline regulatory and tax processes. She flagged ongoing efforts to offer tax and transfer pricing reliefs to GCCs, including easing indirect tax burdens such as GST and introducing single-window approval mechanisms.

The Minister also pointed to India’s competitive advantages, namely STEM talent that is 30-50 per cent more affordable than in Western countries, and notable female STEM representation, with GCCs employing roughly 35 per cent women.

The Finance Minister’s message was clear: With robust skilling, policy support, and strategic investment, India is well-placed to build a sustainable AI-driven innovation ecosystem anchored by its global capability centres.