As AI takes over jobs in the technology industry in India, the government of India has pointed out that the IT industry is still a net job creator. In a written reply in Lok Sabha, the Ministry of Electronics and Information Technology (MeitY) said the industry added 1.35 lakh new jobs in FY26, and its total workforce was around 60 lakh.
The government’s statement comes at a time when rapid AI adoption has raised fears of widespread layoffs—especially in entry-level technology jobs. AI is changing the job picture, but the ministry said the IT industry as a whole is expanding and creating new opportunities.
AI Reshaping the Workforce
According to MeitY, NITI Aayog’s assessment indicates that artificial intelligence is transforming the way technology companies work. Increasingly routine and repetitive tasks are being automated, reducing the need for some traditional roles.
The ministry said entry-level positions, particularly junior quality assurance (QA) and Level-1 IT support jobs, are among the most impacted by automation. AI-powered testing tools, automated monitoring systems, and intelligent customer support solutions are enabling companies to perform repetitive tasks with fewer human resources.
However, the government stressed that automation is not just the elimination of jobs—it is also creating entirely new categories of employment.
Demand Rising for Advanced Technology Skills
AI and digital transformation are major reasons why demand for professionals with knowledge of emerging technologies is great and growing as companies look to AI and digital transformation.
The ministry said organisations are actively hiring specialists in areas such as:
Artificial Intelligence (AI)
Machine Learning (ML)
Data Science
Cloud Computing
Cybersecurity
Generative AI
Automation Engineering
DevOps
Software Architecture
Data Engineering
These high-value jobs are helping to offset the decline in routine positions, and the industry is still a net employer despite ongoing technological disruption.
Government Cites NASSCOM
The government also referred to observations by industry body NASSCOM on recent layoffs at technology companies.
According to MeitY, the fluctuations in workforce numbers are largely due to broader business conditions, economic cycles, and changing client demand rather than a structural decline in India’s technology sector.
Hiring and workforce adjustments are a normal part of the industry's business cycle and should not necessarily be interpreted as signs of long-term weakness, the ministry added.
India's IT Industry Continues to Grow
India’s IT sector is still one of the country’s largest private sector employers and one of the biggest contributors to exports and economic growth.
In this world of economic uncertainty, firms are investing in digital transformation, enterprise software, cloud services, AI-driven applications, and cybersecurity solutions. These investments will keep hiring talent with high-end technical skills in mind, and that is why the demand for highly skilled technical skill sets will continue to keep increasing.
While technology jobs are changing rapidly, industry experts are confident that the long-term future outlook of India’s IT industry is positive. To the best of our knowledge, despite the changing nature of tech jobs, industry experts believe all these skills must be further developed in AI, automation, and digital technology for the professionals of the future to pursue a career in the field.
Future Outlook
The government’s statement underlines the changing nature of employment in the technology industry. Entry-level routine jobs may continue to diminish as automation gains popularity, but the rise of AI and other advanced technology is producing new opportunities that require more expertise.
As the message is clear, students, graduates, and IT professionals; continuous learning, upskilling, and adapting to new technologies will be critical to stay at the cutting edge of the job market for a competitive job market.
With a workforce of 60 lakh employees and 1.35 lakh jobs added in FY26, the Indian IT sector continues to show resilience even as artificial intelligence changes the industry’s employment landscape.
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