India’s workforce edge in a digital economy

India is swiftly transforming its global image, from a hub of low-skilled outsourcing to a powerhouse of tech-driven talent. By harnessing its young, digitally adept population (with over half under the age of 30 and an expected addition of 100 million by 2030),¹⁰ the country is positioning itself as a leading center for tech-enabled workforces.

India, one of the world’s top producers of science, tech, engineering, and mathematics talent, generates approximately 2.5 million graduates annually, far ahead of most developing countries.¹¹ According to a study by Stanford University, India is also catching up fast in emerging technology skilling, with a growing focus on artificial intelligence, data science, cloud, and cybersecurity. AI skill penetration is among the highest in India, compared to developed and developing nations, and second only to the United States (figure 5).¹²

Notably, India’s STEM and AI-skilled workforce has powered the robust growth of its global capability centers (GCCs), now numbered at over 1,700,¹³ hosting research and development, data analytics, product design, and innovation units for Fortune 500 companies. India’s policy support, private sector participation, and ed-tech innovation make it one of the few countries able to skill at scale and speed. Consequently, India’s services exports have increased substantially (from 33% of total exports in fiscal year 2014 to 2015 to 46% in fiscal year 2025 to 2026). This has helped offset the rising goods imports, thereby reducing the current account deficit (as noted earlier).