India’s AI Revolution: Soaring Demand Faces Talent Shortage

India’s data science landscape is booming with projections of a $20–22 billion AI market by 2027, yet a severe skill gap threatens to derail this growth.
Companies are scrambling for full-stack professionals amid surging demand for specialized AI expertise, while infrastructure needs highlight millions of potential jobs. Bridging this divide could unlock massive economic value and empower a new generation of tech talent.

• Explosive Growth Ahead: India’s AI and big data markets are set to surve, with projections reaching $16 billion in big data by 2025 and $20–22 billion in AI by 2027, driven by global trends and domestic ambitions.

• Talent Shortage Crisis: Despite high demand, only 15–20% of professionals have AI skills, leading to a projected shortfall of over a million workers by 2027 and a shift toward hiring adaptable, full-stack experts with premium salaries.

• Infrastructure and Upskilling Imperative: Building AI data centers requires massive investments in real estate and power, while addressing skill gaps in areas like product management and MLOps is crucial for GCCs and overall economic gains.

India’s data science employment scenario faces a strange combination of surging demand for skills, and a simultaneous talent shortage. Analyst reports, projections, and data, all point to the fact that the country’s big data analytics market will witness significant growth in the near future, which can be translated into economic value if the issue of skill gap can be addressed.

The Big Data analytics market in India, per the latest report in Statista, is projected to reach US$16 billion by 2025. According to consulting firm Deloitte, as global Artificial Intelligence (AI) growth and domestic ambitions converge, India stands at a critical inflection point. Worldwide, AI adoption continues to surge. India, too, is riding this digital wave. Poised to become one of the fastest-growing leaders in AI, India’s AI market is expected to reach US$20–22 billion by 2027, posting a CAGR of 30 percent.

What is urgently needed is converting these projections into opportunities to unlock economic value and create new possibilities for young data science professionals. The Deloitte report points out that despite hosting nearly 20 percent of the world’s data, India has just 3 percent of the global data centre capacity. The gap between India’s AI aspirations and compute infrastructure presents a strategic opportunity and a national imperative to build AI data centres at scale. Given the rising demand, India must boost its AI-ready infrastructure, the consulting firm urges.

The firm’s analysis on India’s AI surge predicts a need for an additional 45–50 million square feet of real estate and 40–45 TWH of power by 2030 to support AI data centers, implying millions of related jobs, including data science roles, to meet analytics demands.

Nevertheless, the industry is facing a skill shortage at the experienced levels. Despite increased competition, the demand for data scientists is not slowing down anytime-soon. What’s changing is the type of demand. Companies no longer want just data engineers or analysts;… they are looking for full-stack professionals who can manage end-to-end data projects—from wrangling datasets to communicating actionable insights to stakeholders. Additionally, specialised knowledge in areas like natural language processing (NLP), computer vision, cloud computing, & MLOps is highly sought after.

A recent report published in the Economic Times suggests that skill gaps are hurting companies which want to hire quality AI talent. The report states that tech firms face a severe AI talent shortage, with only 15–20% of professionals possessing AI skills. Companies like HCLTech, Publicis Sapient, and startups report a talent pool unable to meet demand. Hiring strategies now prioritize adaptable professionals who can grow with AI advancements. High demand exists for engineers skilled in building/deploying AI models and professionals integrating AI into business outcomes. Salaries for specialized AI roles have surged, with HCLTech offering 4x entry-level pay for niche AI skills. ~15–20% of their 2025 campus hires are AI specialists, a figure they aim to expand if candidates meet benchmarks.

Bain & Company reports a 21% annual rise in AI job postings and 11% salary growth since 2019, with India’s AI sector projected to create 2.3 million jobs by 2027 – but only 1.2 million skilled professionals may be available, highlighting urgent upskilling needs.

Industry expects demand for AI skills to surge from Global Capability Centers which are witnessing rapid growth in India. Howver, GCCs are facing a skill gap challenge that needs to be addressed. They highlight a significant gap in product management, especially within regulated industries such as life sciences, medtech, high-tech, and finance. As GCCs transition from support functions to strategic hubs for innovation and product development, there is a growing demand for product leaders who can combine technical expertise with business acumen and deep industry insight. These leaders are essential for shaping product vision, aligning stakeholders, and understanding market dynamics, going beyond traditional coding or project management roles. GCCs are increasingly investing in building strong product leadership to drive their growth. According to EY’s ‘Future of GCCs in India – a vision 2030’ report, the domestic GCC market is projected to reach US$110 billion by 2030, with software exports playing a key role, and the number of GCCs in India expected to grow to 2,400 by that year.