Goldman Sachs estimates that generative artificial intelligence could substitute up to 12% of non-farm jobs in India, while simultaneously complementing the work of nearly half the workforce through productivity enhancements.
The investment bank’s analysis suggests the net effect will be a significant reallocation of labor rather than widespread job losses, as automation takes over routine functions and allows employees to focus on higher-value activities.
The findings arrive as Indian financial institutions are already beginning to implement AI-driven workforce reductions.
A major Indian bank recently eliminated thousands of positions, explicitly citing artificial intelligence as the primary driver behind the cuts.
This corporate action underscores the tangible impact of the technology on employment structures, moving the debate from theoretical risk to operational reality.
Policy responses in New Delhi are attempting to steer the narrative toward augmentation rather than displacement.