India’s AI industry is booming, but a widening skills gap threatens to slow the momentum. For every ten Generative AI job openings, there is just one qualified engineer, according to TeamLease Digital’s Digital Skills and Salary Primer Report for FY2025-26. The shortage is pushing salaries sky-high in AI, cloud computing, and cybersecurity, while Tier-2 cities are emerging as new tech hubs. Experts warn that urgent upskilling is essential to sustain India’s digital growth.
Skyrocketing Salaries Amid Talent Scarcity
The talent crunch is reflected in compensation trends. Senior Generative AI engineers and MLOps specialists now command annual packages of ₹58–60 lakh, while senior cybersecurity professionals earn up to ₹55 LPA. Mid-level cybersecurity salaries are expected to rise from ₹28 LPA to ₹33.5 LPA in 2025. In contrast, traditional IT roles like IT support remain largely stagnant at ₹12 LPA, highlighting the premium attached to emerging tech skills.
Cloud and Cybersecurity Gaps Remain Critical
The shortage extends beyond AI. Cloud computing roles face a demand-supply gap of 55–60%, while cybersecurity professionals are similarly scarce. Both areas are vital to India’s digital infrastructure, making the skills deficit a pressing concern for businesses and policymakers alike.
Tier-2 Cities Step Up
The report highlights a significant shift in tech recruitment from traditional hubs like Bengaluru, Hyderabad, and Pune to Tier-2 cities. Fresher salaries in these emerging hubs are approaching parity with metros, offering cost advantages for companies and broadening India’s tech talent pool. The expansion is also improving diversity, with female participation in the top 20 emerging hubs reaching 40%, a notable rise from previous averages.
Education Struggles to Keep Pace
India’s higher education system is struggling to meet the rapidly evolving demands of the tech industry. While engineering and IT degrees remain common, many programs are outdated for today’s AI, cloud, and cybersecurity roles. As a result, students are increasingly turning to specialized bootcamps, online certifications, and industry-led courses. Universities face pressure to update curricula, incorporate cutting-edge technologies, and collaborate with companies on internships and live projects.
Urgent Call for Upskilling
Neeti Sharma, President of TeamLease Digital, emphasizes that India’s digital economy—expected to grow twice as fast as GDP and contribute 20% of the national economy by 2029–30—requires massive investment in skill development. With Global Capability Centres (GCCs) projected to create 1.2 million new tech roles by 2027, the need for a robust talent pipeline has never been greater. Industry leaders are calling for partnerships between government and private sector, national-level skill initiatives, and targeted upskilling programs to close the gap.
A Positive Note on Diversity
Despite the challenges, there are encouraging signs. The growth of Tier-2 tech hubs and GCCs is fostering inclusion, with women now making up over 40% of the workforce in these emerging centers. This increase in female participation marks a significant step toward broader gender diversity in tech.
The Bottom Line
India’s AI talent gap is stark: just one qualified engineer exists for every ten Generative AI job openings. Senior AI roles offer ₹58–60 LPA, mid-level cybersecurity roles ₹28–33.5 LPA, and senior cybersecurity positions ₹55 LPA. Cloud computing faces a 55–60% demand-supply gap, and GCCs are set to create 1.2 million new roles by 2027.
Without urgent reforms in higher education and large-scale upskilling, India risks slowing its digital transformation. The question is no longer whether AI will transform India—it’s whether the country can produce enough talent to drive that change.
