India’s middle-class workforce is moving through one of the most challenging transitions in decades. Technology-driven disruption is reshaping white-collar employment across sectors once considered stable. As automation, artificial intelligence, and shifting global trade dynamics accelerate, concerns about job displacement are intensifying. Marcellus Investment Managers founder Saurabh Mukherjea has expressed serious alarm over what he describes as a structural threat to India’s middle-income population, urging policymakers to take urgent corrective steps before the situation worsens. Mukherjea’s assessment, shared during a podcast conversation, reflects a broader worry that India’s current growth pattern may not be creating enough high-quality jobs. The middle class, which forms the core of the country’s consumer economy and contributes significantly to savings and investment flows, now faces a future marked by instability. While India continues to report strong GDP numbers, the disconnect between economic expansion and formal job creation has widened. Professionals in technology firms, financial services, media organisations, and a wide range of service-sector roles are beginning to feel the strain.
Mukherjea stated that nearly 20 million Indians could be at risk of losing their jobs, not because of a slowdown but due to the integration of advanced technologies and shifting global delivery models. This, he believes, could transform the structure of the employment market, pushing many workers from steady, salaried roles into unpredictable gig-based opportunities that offer little security. His remarks have sparked a larger discussion about whether India is prepared for a job market defined by rapid automation. Many workers rely on skills that were in high demand for the past two decades but may soon become redundant. The accelerated adoption of AI in corporate operations and tech-enabled outsourcing has raised questions about the future of white-collar employment. For years, India’s economic story has been tied closely to the rise of the IT and IT-enabled services industry. Millions of educated young Indians found opportunities in multinational companies, business process outsourcing firms, consulting agencies, and allied sectors. These jobs provided financial stability, enabling the expansion of urban middle-class households across major cities. However, this model is witnessing a profound change. Companies are increasingly adopting AI-powered systems that handle tasks like coding, data analysis, compliance checks, customer communication, and documentation. As the technology matures, the need for entry-level and mid-tier employees has begun to decline. Mukherjea noted that the traditional path to upward mobility—education followed by a salaried job in a reputable organisation—is being disrupted. Although new opportunities are emerging through tech startups and gig-based platforms, they do not offer the same predictability, benefits, or long-term security that earlier generations of workers enjoyed. He argued that a significant number of professionals in IT, banking, and media roles are vulnerable, as the nature of work in these sectors changes rapidly. Companies now expect employees to adapt quickly to evolving tools and methodologies, often without the promise of permanent employment.
Automation and AI Redefining Corporate Structures
AI is no longer an abstract idea experimented with in innovation labs. It has entered mainstream corporate operations. Organisations across the world are using AI to streamline workflows, reduce overhead costs, and improve accuracy in tasks that previously required human intervention. In India, IT firms have accelerated their automation efforts to remain competitive globally. This includes deploying AI systems to handle software testing, maintenance, troubleshooting, and customer support. What once required thousands of workers can now be managed by small teams supported by automated processes. Financial institutions, too, are using technology to improve decision-making, enhance fraud detection, and manage customer accounts. The shift toward digital banking has reduced the need for large branch networks staffed with employees at every level. Many media companies rely on algorithms for content tracking, performance analysis, and even the creation of basic reports. Mukherjea believes this shift will continue, forcing India to rethink how it prepares its workforce. He emphasised that the current education and training ecosystem remains heavily focused on traditional disciplines, which do not equip students for a future dominated by automation. While technological disruption is a primary factor, global economic conditions have also contributed to the challenges facing India’s middle-class workers. Economic uncertainties in major markets such as the United States and Europe have slowed down outsourcing orders, affecting Indian companies that depend on foreign clients. Rising protectionism, geopolitical tensions, and restructuring of supply chains have altered the global business environment. Mukherjea pointed out that Indian service exports, which provided employment for millions, now face intense competition from emerging hubs in Southeast Asia and Eastern Europe. These regions offer comparable skills at competitive costs, causing India’s outsourcing advantage to shrink. As multinational firms diversify their operations, Indian talent finds itself competing on a global scale. Companies now look for highly specialised skills rather than large teams performing repetitive tasks. This has resulted in hiring slowdown across several sectors, creating uncertainty for young professionals seeking careers in industries that once guaranteed stability.
Shift Toward a Gig-Based Ecosystem
The rise of gig platforms across the world has created new income opportunities, but Mukherjea warned that replacing stable employment with gig work could have far-reaching consequences for India’s economic landscape. While flexible jobs in delivery, ride-hailing, freelancing, and independent contracting have expanded, they often lack the benefits that accompany formal employment. Workers in these roles typically do not receive health coverage, social security contributions, or paid leave. Income can fluctuate based on market conditions, leaving households vulnerable during periods of low demand. The rapid shift toward gig-based employment could weaken the financial resilience of the middle class. Mukherjea highlighted that a country of India’s size cannot rely primarily on gig work to support long-term economic growth. Although such jobs provide temporary solutions, they do not generate the same stability or productivity as full-time positions within established firms. India’s middle class—comprising salaried professionals, small business owners, and skilled workers—has been a major driver of the country’s consumption economy. Their spending on housing, education, consumer goods, healthcare, and travel has supported a wide range of industries. Any disruption to middle-class income levels directly affects economic momentum. Mukherjea’s warning has drawn attention to the potential social consequences of large-scale job losses. A shrinking middle class could lead to reduced consumer spending and weaken demand in sectors such as housing, retail, automobiles, and financial services. This would create a ripple effect, further slowing job creation and widening income disparities. He emphasised that India must protect its middle-class workforce by equipping them with future-ready skills and encouraging investment in industries that generate stable employment. Without such interventions, the country risks undermining decades of economic progress.
Mukherjea urged policymakers to take proactive steps to address the structural shift underway. He stressed the importance of redesigning India’s education and training systems to match the evolving needs of the global economy. Instead of focusing exclusively on traditional academic pathways, he called for stronger emphasis on applied learning, digital literacy, and hands-on technological training. Policymakers, he said, should encourage sectors that have the potential to create large-scale employment. This includes manufacturing, healthcare services, renewable energy, logistics, and domestic tourism. Strengthening these industries could help absorb workers transitioning from technology-driven white-collar roles. He also argued that reforms in labour laws and social security frameworks are essential. India must extend safety nets to gig and contract workers so that more citizens enjoy access to basic welfare benefits. These steps would help build resilience among households navigating an unpredictable job market. Mukherjea’s remarks have sparked significant debate among economists, policymakers, corporate leaders, and young professionals. Some agree that the threat is real and immediate, while others believe that India will generate new jobs as technology creates fresh opportunities. Although technological disruption does bring innovation, the pace of change has outstripped the ability of institutions to adapt. As AI continues to advance, the nature of work is likely to evolve rapidly, affecting not just entry-level roles but mid-career professionals who have invested years in specialised domains. The challenge for India lies in preparing its workforce for a future where digital skills are essential.
India stands at a pivotal moment. The country has one of the world’s largest young populations, but the ability to transform this demographic strength into economic advantage depends on how well it navigates the changing job landscape. Mukherjea’s warning underscores the urgent need for structural reforms. He called for collaborative efforts among government, industry, and educational institutions to rebuild the foundation of India’s labour market. With effective policies and sustained investment in skill development, India can create a more resilient workforce capable of thriving in a technology-driven global environment. Mukherjea’s analysis serves as a reminder that India must prepare for major shifts in its middle-class employment structure. As automation and AI reshape workplaces, millions of workers face uncertainty. The path forward requires thoughtful policymaking, targeted skill development, and responsible corporate practices. India’s economic stability depends heavily on the strength of its middle class, and safeguarding their livelihoods is essential for long-term national progress.
