India’s booming engineering sector produces 1.5 million graduates every year, but only a mere 2,000 are equipped to create core AI products. This staggering statistic is a wake-up call for both educational institutions and the tech industry. With the rise of artificial intelligence (AI), the workforce is transforming rapidly, and Indian engineers are feeling the heat.

According to the International Monetary Fund (IMF), 40% of global jobs will be impacted by AI in the near future. This could affect 300 million jobs globally, leading to widespread job insecurity. In India, 67% of engineers fear that AI will negatively impact their jobs, while 87% are considering upskilling to safeguard their careers.

Why AI Talent is So Limited

Despite India’s robust engineering output, the skill gap in AI is glaring. Many engineers have solid theoretical knowledge but lack practical, application-based skills. This disconnect between education and industry needs is leading to low employability rates—only 60% of India’s engineering graduates are considered employable, and only 45% meet industry standards.

The solution? Upskilling. India’s engineers recognize this, with 89% keen to acquire hard skills and 86% interested in generative AI. The demand for high-level problem-solving abilities and AI-complementary skills is growing, but without significant changes in education, India risks falling behind in the AI revolution.