India rises to 13 in AI readiness rankings, but skills deficit persists

India has climbed to 13th place globally in the QS World Future Skills Index 2027, emerging as the highest-ranked country in South Asia and among lower-middle-income economies.

The ranking reflects the country’s growing influence in artificial intelligence, technology investment and workforce transformation.

Yet the report carries a warning. While India is building one of the world’s strongest AI-driven economies, its education system is struggling to produce enough graduates with the skills employers increasingly demand.

According to QS, India scored 89.4 overall and achieved a perfect score of 100 in Economic Capacity, the highest in the world. The ranking was driven by sustained economic growth, infrastructure investment and rapid expansion in AI-related sectors.

India’s challenge is not a shortage of graduates. In fact, the country has the world’s largest number of tertiary-educated individuals and the largest IT services workforce, employing around 5.8 million professionals.

The concern is quality. The report places India at 73rd on the Human Capital Index, indicating a significant gap between the volume of graduates being produced, and the skills required in fast-growing sectors such as artificial intelligence, digital technologies and green industries.

QS President Nunzio Quacquarelli said India possesses many of the ingredients needed to become one of the world’s fastest-growing economies over the next decade.

However, he noted that improving the median quality of talent produced by educational institutions is now the key challenge.

The stakes are high. The report cites projections suggesting successful AI adoption could add nearly USD500 billion to India’s economy by 2030.

However, sectors that employ large numbers of workers, including business process outsourcing and call centres, could face significant disruption from automation. At the same time, demand for AI, digital and sustainability-related skills is rising faster than many educational institutions can adapt.

The report argues that India’s next phase of growth will depend not just on adopting AI, but on preparing workers to use it effectively.

Among the key recommendations is faster and more consistent implementation of the National Education Policy (NEP) 2020. The report also calls for stronger international education partnerships and greater focus on jobs where AI enhances human productivity rather than replaces it.

For India, the message is clear: the economy may be ready for the future, but the workforce must keep pace. IndiaToday