At the Bengaluru Skill Summit 2025, BVR Subrahmanyam, chief executive officer of NITI Aayog, warned that India’s demographic advantage could quickly turn into a liability unless the workforce is equipped to thrive in an AI-driven world.
He emphasised that India stands at a defining moment in its developmental journey, with a demographic advantage that could either become a dividend or a missed opportunity.
Subrahmanyam outlined that while India is poised to become the third-largest economy in the world, growth cannot rely solely on population strength. “A large workforce is not enough,” he said. “We need a workforce that is educated, skilled, and employable.”
“Population alone won’t power growth, only a skilled and employable population will,” Subrahmanyam asserted, noting that just 4% of India’s workforce is formally skilled compared to up to 90% in advanced economies. He urged policymakers, educators, and industry leaders to view skilling not as an add-on, but as the very foundation of education.
“If education isn’t skilling, then what is?” he asked, pushing the need to embed practical, technology-led learning from the earliest years of schooling.
A key theme of his address was the transformative role of technology and AI. He described technology as a “great disruptor” and a “great equaliser” that can help India leapfrog traditional stages of growth.
AI, quantum computing, and climate technologies present immense opportunities, but only if the workforce is prepared to harness them. Subrahmanyam stated that AI will not eliminate jobs but redefine roles, creating entirely new tasks and industries that demand fresh skill sets.
He added that NITI Aayog’s studies estimate that while automation could displace around four million jobs, proactive skilling initiatives could generate six million new ones.
To prepare for this future, he called for a nationwide “AI Talent Mission” to embed AI and digital literacy into the curriculum from primary school through higher education. He also discussed the importance of lifelong learning ecosystems, which enable citizens of all ages to upskill and reskill as technologies evolve.
The NITI Aayog CEO reinforced the importance of vocational education, international job pathways, and counselling systems to help students and workers make informed career choices. He further highlighted the importance of gender inclusion, noting that many women who drop out of the workforce often lack opportunities for reskilling when they wish to re-enter the workforce.
“India’s demographic dividend will only become a technological dividend when education, skilling, and innovation move hand in hand,” Subrahmanyam concluded. His message was clear: investing in people and technology today will define India’s growth story tomorrow.
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