India's Tech Sector Faces Job Cuts Amid AI Disruption and Economic Challenges

India's technology sector is experiencing significant layoffs, raising concerns about the potential impact of artificial intelligence on employment within this vital industry. Last month, Tata Consultancy Services (TCS), India's largest private employer with over 500,000 IT professionals, announced plans to cut more than 12,000 jobs—primarily at middle and senior management levels—representing approximately 2% of its global workforce. CEO K Krithivasan attributed these layoffs to "limited deployment opportunities and skill-mismatch," dismissing AI as a primary cause. However, widespread apprehension persists, with many interpreting these developments as part of broader, disruptive shifts driven by AI's growing influence. Traditionally reliant on India’s abundant, low-cost skilled labor to deliver software services, TCS and its industry peers are now facing pressures from automation and rising client expectations for innovation. India produces over 1.5 million engineering graduates annually, and the IT sector contributed about 7.5% to the nation’s GDP in fiscal year 2023. Experts warn that AI adoption presents significant challenges; routine and mid-level jobs are being transformed...