India has firmly positioned itself as one of the most prepared countries for the future job market, securing second place in the QS World Future Skills Index 2025 just behind the United States. The index evaluates countries based on their ability to meet the evolving demands of the global workforce, considering four critical factors: Skills Fit, Academic Readiness, Economic Transformation, and Future of Work.
India’s impressive performance in the index, particularly in Artificial Intelligence (AI) and green skills, indicates the country’s growing strength in digital technologies and sustainability initiatives. With rapid technological advancements and a robust start-up ecosystem, India is emerging as a key player in these futuristic sectors. However, despite this promising outlook, the report sheds light on serious gaps that still hinder India’s ability to fully capitalize on its future job potential.
India ranked 25th overall in the QS World Future Skills Index 2025, placing it as a “future skills contender” on the global stage. However, the country faces notable challenges in areas like economic transformation and the alignment of workforce skills with the rapidly changing job market demands. In the specific categories of economic transformation and skills readiness, India ranked much lower 40th and 37th respectively—indicating that the country’s economic landscape and workforce development are not fully prepared to meet the upcoming challenges.
India’s young population, dynamic start-up culture, and GDP growth have undoubtedly contributed to its strong performance in the Future of Work indicator, where it scored an impressive 99.1 second only to the U.S. The country is well-positioned to recruit into digital roles, as it continues to foster the next generation of tech talent. This highlights a promising future for AI and green technologies, two sectors that are expected to dominate the global economy in the coming decades.
However, despite the strong numbers in specific areas like digital and green skills, India’s higher education system faces critical gaps that need addressing. The skills mismatch remains one of the biggest hurdles, with employers expressing concern over the lack of graduates equipped with the advanced digital, AI, and green skills that are in high demand. These gaps reflect a broader need for educational reforms and stronger industry collaboration to ensure that India’s workforce is fully equipped to take on future roles.
The QS World Future Skills Index also highlights India’s low ranking in innovation and sustainability practices, scoring poorly on the Future-Oriented Innovation and Sustainability metrics. This suggests that while India has the potential to lead in technological advancements, its capacity for long-term, sustainable solutions and innovation remains a key area for improvement.
Despite these challenges, the Indian start-up ecosystem remains one of the most vibrant in the world. With a growing emphasis on entrepreneurship, India has created a supportive environment for new businesses, particularly in the AI and digital transformation sectors. The government’s focus on digital India, along with increasing investments in green technologies, offers a foundation for future growth in these areas. However, scaling these efforts will require overcoming the barriers that hinder education, skill development, and industry collaboration.
India’s future workforce will play a crucial role in determining whether the country can truly unlock its potential. To bridge the skills gap, there needs to be a deeper integration between higher education and industry. Universities and technical institutions must evolve to provide more relevant, industry-aligned training that meets the needs of the emerging job market. Strengthening the relationship between academia and industry will also enable more targeted initiatives in AI, digital, and green skills, ensuring that students are better equipped to step into the workforce.
Another key challenge lies in India’s ability to scale sustainable practices and innovation within the workforce. With the global push for net-zero emissions and a sustainable future, it is essential for India to focus on green technologies and sustainability as key pillars of its economic transformation. This requires not only technological advancements but also a shift in mindset to prioritize long-term, sustainable growth over short-term gains.
India’s success in the QS World Future Skills Index 2025 reflects its potential to lead in the future job market. However, this potential can only be fully realized by addressing the gaps in skills development, higher education, and industry collaboration. The youthful population and dynamic start-up ecosystem are valuable assets that can drive the country’s growth, but they need to be supported with the right infrastructure, policies, and investment in human capital.
As India continues to grow and evolve, the country’s future job market will be shaped by how well it can address these challenges. With the right focus on education, skills development, and sustainability, India has the opportunity to become a global leader in the future economy, securing its place as a top contender in the future of work.