Large firms to be net job losers, small businesses to drive employment: Nandan Nilekani
Nilekani argued that the future of the Indian economy lies in its "millions of small businesses”, which are more resilient to the disruptions caused by AI.
Infosys co-founder Nandan Nilekani predicts that large corporations in India will become significant job losers due to automation and artificial intelligence, while small businesses will emerge as the primary drivers of future employment. Speaking at the NCAER India Policy Forum 2026, Nilekani urged a shift in perspective towards job creation in India.
He argued that while large companies are vulnerable to job reduction, small businesses possess resilience against AI-driven disruptions and have the potential to generate more jobs. Nilekani projected that India will reach one million startups by 2035, up from 1,50,000 currently. To facilitate this change, he emphasized the necessity of deregulation and simplified business interfaces, along with simplified access to capital and markets for small entrepreneurs through digital platforms like the RBI’s Account Aggregator and ONDC.
Nilekani highlighted the obsolescence of the traditional employer-employee relationship and advocated for "portable benefits" and "portable credentials" in a gig economy where workers frequently change jobs.
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