Goldman Sachs Says India's Workforce Faces Limited AI Job Risk, But IT Services Exposed
Goldman Sachs' chief India economist Santanu Sengupta said the country's labour force is unlikely to see widespread job losses from artificial intelligence, even as certain services-sector roles face disruption. Speaking to Bloomberg Television, Sengupta argued India's exposure is lower than many peer economies because a large share of workers remain in physical or mechanical occupations rather than desk-based knowledge work, with construction and retail trade alone accounting for roughly 40% of the workforce and currently seeing little AI-driven substitution. The picture looks different for services, where finance, healthcare, education and business services could gain from AI adoption through productivity improvements, while postal, telecommunications and IT services—particularly call-centre roles—face greater risk of job substitution. Goldman estimates that if AI adoption is sequenced gradually, the productivity gains, potentially adding 0.4 percentage points to India's growth over a decade, could outweigh job losses over a five-year horizon. The bank also flagged that India's broader economic resilience has surprised it, with the country continuing to grow rapidly despite heavy reliance on imported oil. The comments add to a growing debate in India over how its outsourcing-heavy IT sector, employer to millions and a major services exporter, will adapt as global clients push AI-led automation into support and back-office functions.