Can India’s middle class survive the AI era?, ETHRWorld

Depiction of collaboration between humans and AI, redefining work roles and enhancing creativity and problem-solving. India’s middle class is growing rapidly. Projections suggest it will account for 38% of the population by 2031 and 60% by 2047. This group has long been the engine of India’s economic growth, driving production through hard work and fuelling consumption through rising disposable incomes. Typically earning between Rs 5 lakh and Rs 30 lakh per year, middle-class households have traditionally gravitated toward secure, white-collar careers in government service, IT and software, banking, finance, insurance, and education. These jobs offered not just income, but dignity, upward mobility, and long-term stability. That foundation, however, is under serious threat.Artificial intelligence and automation are rapidly reshaping the job market, and middle-class careers sit squarely in the crosshairs. Roles in customer support, software development, quality assurance, banking operations, accounting, human resources, copywriting, journalism, paralegal services, and financial research, seen as dependable, are now being automated at scale. These roles often involve repetitive, rule-based tasks, making them especially vulnerable to AI-driven systems.

According to NASSCOM and industry reports, automation is already slowing entry-level hiring and triggering deep structural changes in employment. AI is also making inroads into fields like journalism, finance, and law professions, once thought immune to technological disruption. As companies adopt AI for productivity gains, many of the white-collar jobs long favoured by middle-class Indians are vanishing, shaking the very stability and aspirations that define the middle class.

Entry-level jobs—essential for building skills and experience—are disappearing quickly. The gap between productivity and wages is widening at an accelerated pace due to AI, further fuelling income inequality. The rise of artificial intelligence is deepening economic and social divides, creating a polarized society. A privileged minority—comprising tech-savvy individuals, investors, and corporations—has the resources to harness AI for growth, wealth creation, and influence. In contrast, a majority faces displacement and marginalisation as automation threatens traditional jobs and skill sets.This growing chasm between the AI-enabled elite and the economically vulnerable middle-class masses signals a critical need for inclusive policies and reskilling initiatives to ensure broader access to the benefits of AI. While companies gain from automation, the middle class is rapidly losing its foothold. The implications are not just economic—they are deeply social and political. A weakened middle class has fewer resources to invest in education, healthcare, and opportunity, putting the very fabric of India’s growth story at risk.

The challenge now is whether the middle class can adapt quickly enough to the AI-driven economy. A closer look at the evolving landscape reveals that many white-collar jobs are not being eliminated outright. In many sectors, AI is transforming how work is done, not simply replacing workers. For instance, in journalism, AI may assist with drafting or data extraction, but the core of storytelling, editorial judgment, and investigative reporting still relies on human insight. In finance and law, AI can automate research or pattern recognition, but it rarely substitutes for strategic thinking or client relationships. The disruption lies not in total replacement but in the redistribution of tasks, often cutting back on the entry-level and support roles that once served as stepping stones for career growth. Yet this transformation offers an opportunity—not just for survival, but for reinvention.

The way forward lies in redefining what skills are valued and how careers are built. Roles that demand creativity, critical thinking, empathy, and complex problem-solving remain resilient. Emerging fields like green technology, AI ethics, climate adaptation, ed-tech, and digital health hold promise for middle-class professional fields where human adaptability and insight still reign supreme.

Reskilling and upskilling at scale will be key. Initiatives like Skill India and industry-led training programmes must focus beyond technical know-how—they must prepare workers to transition from task-driven roles to decision-making ones. While traditional entry-level positions may disappear, they can be reimagined through apprenticeships, project-based learning, or modular roles designed for the AI age. TCS’s Xplore and Ignite programmes are prime examples of this thinking. These programmes offer structured pre-joining modules that equip fresh graduates with digital skills, real-world project exposure, and immersive learning experiences before they even step into a full-time role.

Our government’s National Apprenticeship Promotion Scheme (NAPS) under Skill India is creating modular training pathways in sectors like IT, electronics, and services, with an increasing focus on automation-related skillsets. Adding to this ecosystem is Scaler Academy, a private platform offering intensive, project-based learning with mentorship from industry experts. It mirrors on-the-job challenges, helping learners build competencies outside traditional employment channels. Together, these models represent a shift from passive entry-level roles to apprenticeship-style, learning-driven pathways, preparing India’s workforce for a future where adaptability and applied knowledge are key.

AI doesn’t have to be the enemy—it can be an enabler. Those who learn to collaborate with AI will become more valuable, not less. In this emerging reality, middle-class professionals can evolve into knowledge integrators, human-AI coordinators, empathy specialists, and problem-solvers for complex, real-world issues.

Policy has a critical role to play. Employers must be incentivized to retain and retrain existing staff. Governments should strengthen social safety nets and promote public-private partnerships for reskilling. Accessible digital education platforms can bridge skill gaps, and tax reforms should help reduce inequality. Investment in innovation hubs, especially in Tier 2 and Tier 3 cities, can decentralise opportunity and democratize access to the AI economy.

India’s middle class is no stranger to change. It has weathered economic reforms, globalisation, and digital transformation. With the right support systems and a renewed focus on human-centred skills, it can not only survive the AI era but also lead it.

DISCLAIMER: The views expressed are solely of the author and ETHRWorld does not necessarily subscribe to it. ETHRWorld will not be responsible for any damage caused to any person or organisation directly or indirectly.

• Published On Jun 15, 2025 at 08:52 PM IST

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