THE ESSENTIALS IN 30 SECONDS

  • In a Nikkei Asia interview published on 6 November, Nasscom president Rajesh Nambiar said AI is making the job market harder for new engineering graduates.
  • He called for a fast overhaul of computer science curricula and pointed to cybersecurity, AI consulting and AI implementation as growth areas for IT firms.
  • Nasscom's own February review put FY26 direct tech employment at about 5.95 million, up 2.3%, with roughly 135,000 net additions.

The head of India's main technology industry association has acknowledged that artificial intelligence is making life harder for the country's newest software engineers. In an interview with Nikkei Asia published on 6 November, Rajesh Nambiar, president of Nasscom and a former India chief of Cognizant, said the automation of basic coding and software testing is eating into the entry-level work that has long served as the first step for graduates joining Indian IT exporters.

What Nambiar said

Nambiar did not play down the problem. "From a fresher's point of view, it is a concern," he told the publication, according to excerpts relayed by several outlets. He described the current period as a phase of rebalancing that could last until software exporters adapt their business model, with new AI-related work making up for revenue lost in older lines such as technology infrastructure management. He named cybersecurity, AI consulting, and the implementation and maintenance of AI systems as the areas where firms could grow.

He also pointed to a change in how clients pay. Contracts are moving away from billing for the number of people assigned to a project and towards paying for outcomes, which alters what employers expect from new recruits. Without a rapid update of computer science teaching, he warned, students risk graduating with skills that are already outdated. According to AI Weekly's account of the interview, Nasscom is working with the University Grants Commission and other agencies on a joint undergraduate AI curriculum and expects approval to take about six months.

The numbers behind the warning

Nambiar did not put a figure on entry-level job losses. Nasscom's strategic review, released in February, estimated direct tech employment for the year to March 2026 at about 5.95 million, a rise of 2.3%, with roughly 135,000 net additions, while industry revenue was projected at about $315 billion. Against that, FourWeekMBA, citing India Today, notes that about 2.6 million students were enrolled across 5,903 engineering and technology colleges in the same year, a gap that shows how few new sector jobs are available relative to the pipeline of graduates.

Context and open questions

The curriculum effort is not new. In May, a government AI curriculum taskforce reviewed B.Tech computer science programmes with Nasscom and industry experts, flagging gaps in generative AI, MLOps and hands-on practice. It remains unclear whether a new syllabus would replace existing content or add AI modules on top, and how quickly universities would adopt it. The coming campus-hiring disclosures from large IT firms should give a clearer picture of whether demand for freshers is recovering.