Large firms to be net job losers, small businesses to drive employment: Nandan Nilekani
Large companies face job losses due to automation and artificial intelligence advancements. Millions of small businesses will become the primary engine for future employment. Nandan Nilekani advocates for a fundamental shift in job creation perspectives. Deregulation and simplified interfaces are crucial for supporting this transition. India anticipates reaching one million startups by the year…
Infosys co-founder Nandan Nilekani predicts large Indian corporations will become net job losers due to automation and AI, while small businesses will drive future employment. Speaking at the NCAER India Policy Forum 2026, Nilekani called for a shift in India's mental model regarding job creation. He argued that large companies, which are well-structured, are most vulnerable to job loss as tasks become automated.
In contrast, he emphasized that India's millions of small businesses are more resilient to AI disruptions and will create more jobs. Nilekani projected that India will have one million startups by 2035, up from the current 150,000. To support this transition, he stressed the need for deregulation, simplified business interfaces, and protection for small entrepreneurs from overburdening regulations.
He also advocated for portable benefits and credentials to accommodate a workforce increasingly operating within a gig economy.
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