By Mr. Sarbojit Mallick, Co-founder, Instahyre

India is at the forefront of another technological transformation, powered by rapid AI adoption. Nearly three-fourth of Indian tech companies were considering using AI in at least one of their business functions in 2025. The Union Budget 2025, announced for the eighth consecutive time by Nirmala Sitharaman, India’s Finance Minister, further showcases a significant commitment to the use of AI and tech skill development by allocating dedicated funds for accelerating AI education.

To revolutionise the technology landscape, the Indian government has allocated INR 500 crore for Centres of Excellence in AI Education, the addition of 75,000 medical seats over the next five years, and the rollout of 50,000 Atal Tinkering Labs to foster innovation. With the intent to bridge existing skill gaps, these initiatives will make the young Indian workforce future-ready for competing in a dynamic global economy, solidifying India’s leadership in emerging technologies.

Hence, the budget presents both an opportunity and a mandate for companies to enhance their AI capabilities and remain competitive in this evolving landscape. To do this, they must develop comprehensive strategies for AI upskilling and equipping the workforce with industry-relevant skills.
Aligning Business With Government Initiatives
The government’s key emphasis on AI and skill development offers a collaborative framework for corporate strategies. Companies can collaborate with the government to leverage available resources and align their upskilling programs with the larger objective of boosting the national economy. This will help companies expand their existing infrastructure for AI upskilling and focus on capacity building. Engaging with the proposed Centres of Excellence in AI for Education and participating in the Atal Tinkering Labs will help India Inc create a pipeline of skilled tech talent.
Implementing Structured Upskilling Programs
FOBO i.e. the Fear of Becoming Obsolete has become a buzzword in the corporate world. Employees at different levels, including the leaders, are battling with their FOBO as the speed of AI integration in product building and processes is outpacing the upskilling of employees. This requires a structured approach to upskilling, which means that companies need to conduct comprehensive assessments to identify skill gaps within their workforce and develop targeted training programs to address these deficiencies. This includes creating in-house learning platforms that offer courses on AI and related technologies and incentivizing course completion to encourage participation further.
Addressing The Global Tech Talent Shortage
There is no denial of the fact that India is on a trajectory to become a global leader in AI adoption. Nasscom and Deloitte’s recent report unveils that the Indian AI market is projected to grow at 25-35% CAGR through 2027, further triggering the need for relevant AI skills in the market. Despite this unprecedented growth, a significant gap remains in the AI segment. The Indian AI talent pool is estimated to grow at 15% CAGR to reach 1.25 million by 2027. To ensure a steady supply of qualified professionals, Indian companies must invest proactively in training programs and bridge this gap.
Continuous Learning and Adaptation
As AI processes are advancing at a rapid pace, staying up to date is no longer considered optional - it is a necessity. To build a culture of continuous learning, companies should encourage employees to stay updated with the latest advancements and provide opportunities for ongoing education. This can include attending workshops, participating in conferences and enrolling in advanced courses. By integrating continuous learning into the workplace, Indian companies will not only enhance their workforce’s expertise but also propagate a nationwide culture of tech innovation and adaptability.
Leveraging Public-Private Partnerships
The union budget allocated dedicated funds for higher education institutions to undertake AI research. This will enable fruitful industry-academia partnerships. By encouraging public-private partnerships, the government’s youth employment initiatives can create more apprenticeships, internships, and fellowship or research opportunities. This collaborative approach will accelerate the adoption of AI across sectors and equip young talent with practical and real-world experience.
Final Thoughts
The Union Budget for 2025 sets a strong base for AI advancement and skill development in India. With bold investments meant to position India as an AI leader, companies can focus on engaging employees in implementing these strategies and enhance their competitiveness. AI upskilling will have long-term implications, so all stakeholders can build an inclusive ecosystem for helping tech talent contribute to the nation's growth and fulfil India's vision of becoming a global leader in AI.