New Delhi: India ranks 13th globally in terms of readiness for the artificial intelligence economy in the QS World Future Skills Index 2027, according to a new report released by global higher education analyst QS Quacquarelli Symonds (QS). The findings show that India ranks among the best in the world in preparing its workforce and education ecosystem for the opportunities and disruptions brought by artificial intelligence.The report highlights the significant progress India has made over the past decade in scaling higher education, digital talent and workforce readiness. However, it also highlights a key challenge: ensuring that the quality and relevance of graduates’ skills keep pace with the country’s rapid economic and technological transformation.QS said India has several advantages that lay a solid foundation for future growth, including the world’s largest IT workforce and the world’s largest number of highly educated personnel. At the same time, the country must address persistent skills gaps and improve graduate employability to take full advantage of the opportunities in the AI-driven economy.India’s growing digital workforce offers competitive advantageCommenting on the findings, QS President Nunzio Quacquarelli said the scale of India’s digital workforce is unrivaled globally and could help the country become one of the world’s fastest-growing economies over the next decade.“The size of India’s digital workforce is rapidly reaching a scale unmatched by other countries. It already has the largest IT workforce in the world and the largest number of highly educated people in the world. These factors give India the potential to become the world’s fastest-growing economy over the next decade,” Quacquarelli said.However, he warned that the country’s next challenge lies in improving the quality and consistency of talent produced by its institutions.“Our research shows that a key challenge now is to improve the average quality of talent produced by its institutions, as well as address competency barriers. India’s National Education Policy 2020 is an ambitious attempt to address these challenges, but its implementation must now scale evenly across regions,” he added.Quacquarelli also highlighted the importance of transnational education collaborations, branch campuses and international partnerships in helping India strengthen its talent pipeline and address emerging skills shortages.How the QS World Future Skills Index measures readinessThe QS World Future Skills Index assesses how effectively countries develop, adapt and deploy workforce skills in a global economy increasingly driven by artificial intelligence. The 2027 edition combines higher education performance indicators, labor market indicators, skills gap analysis, AI transformation readiness and internationally recognized third-party data sets to assess 89 countries.The report comes as analysts predict that the successful adoption of artificial intelligence will bring nearly $500 billion in additional economic value to the Indian economy by 2030.India performs strongly on key indicatorsIndia’s overall score is 89.4, ranking it 13th globally in the index. The country’s strongest performance was in the “Future of Work” category, ranking fifth globally with a score of 96.0.The report also highlights strong results from economic transformation and academic preparation, while identifying skills alignment as an area requiring further improvement.India Performance Indicator – QS World Future Skills Index 2027
The fastest-growing G20 economy has the highest economic capability scoreOne of the report’s salient findings is India’s performance in terms of economic fundamentals. QS noted that India’s continued GDP growth, labor market investment and infrastructure development helped the country achieve a perfect score of 100 in the economic capabilities sub-indicator.India has maintained its status as the fastest-growing economy among G20 countries for three consecutive years. This trend has enhanced its ability to absorb technological transformation and attract investment in emerging industries.Skills mismatch remains a major issueWhile India ranks fifth globally in terms of readiness for future jobs, it ranks only 18th in terms of skill alignment. The report said the gap reflects a growing mismatch between labor market needs and the skills graduates acquire through higher education.Employers are increasingly seeking expertise in artificial intelligence, digital technology, sustainability and green innovation. However, higher education systems often struggle to adapt curricula quickly enough to meet changing workforce needs.The report states that by February 2026, India’s artificial intelligence-related investment has reached approximately US$90 billion, making workforce preparation a top priority. Developing artificial intelligence, digital and green skills at scale will be critical if India is to maximize the benefits of these investments while advancing its broader economic ambitions.The findings are also in line with the government’s Viksit Bharat 2047 vision and long-term sustainability goals, including achieving net zero emissions by 2070.The quality of graduates must match the number of graduatesAnother challenge identified by QS is improving human capital outcomes.India ranks 73rd globally on the Human Capital Index indicator, indicating that while the country produces a large number of graduates, ensuring consistent quality remains a pressing issue.The report points out that India currently has an IT workforce of approximately 5.8 million, making it the largest such talent pool in the world. However, as AI technology reshapes industries, continued investment in retraining and upskilling is critical to ensuring workers remain competitive.For universities and policymakers, this means focusing not only on expanding educational opportunities but also on improving learning outcomes, employability and industry relevance.India leads South Asia and lower-middle-income economiesAmong low- and middle-income countries, India emerges as the strongest performer on the index. It ranks first in South Asia and ranks first among countries in its income category.India’s closest regional rival is Bangladesh, ranked 67th overall, according to QS. In its income group, the Philippines is the closest competitor, ranking 38th globally.These results solidify India’s position as a regional leader in AI readiness, workforce development, and higher education expansion.What agency leaders should learnThe report identifies several strategic priorities for higher education leaders and policymakers.One of the most important things is to strike the right balance between AI-augmented efforts and AI-automated efforts. Countries such as the United States, Australia, the United Kingdom and Germany are increasing labor competitiveness by creating more roles. Artificial intelligence can increase human productivity rather than completely replace workers.It is crucial for India to continue investing in future-oriented industries such as healthcare, agriculture, financial services and business services. At the same time, industries traditionally associated with mass employment, including business process outsourcing and call centers, may face greater disruption from automation.Universities face growing pressure to adaptThe report also highlights the growing gap between workforce transformation and education reform.The demand for artificial intelligence, digital and green skills is growing much faster than the traditional education system can respond. As a result, universities are under pressure to redesign programs, update curricula and develop more flexible academic models.QS believes that addressing these challenges requires coordinated action by governments, regulators, institutions, employers and industry partners. Investments in lifelong learning, workforce development, curriculum modernization and institutional innovation will all play an important role.The report further notes that while countries such as the UK, US, Australia, Switzerland and Germany are leading the way in preparing for the jobs of the future, even these countries face challenges in ensuring a strong alignment between graduate skills and labor market needs.QS World Future Skills Index 2027: Top 15 CountriesThe latest rankings are dominated by developed economies, with the United States continuing to rank first in the world. India ranks 13th overall and is the only South Asian country to make the top 15.
Looking to the futureThe QS World Future Skills Index 2027 paints a positive picture of India’s readiness for an AI-driven future. The country has built a strong foundation through economic growth, digital workforce expansion, and higher education participation. However, the findings also serve as a reminder that scale alone is not enough.As artificial intelligence reshapes global industries and labor markets, India’s success will depend on its ability to improve skills alignment, improve the quality of its graduates, and ensure that higher education institutions evolve as quickly as technology transforms the economy.
