- Goldman Sachs says that India may be less impacted by the AI-driven job losses.
- Sectors like IT are still facing this pressure as AI is largely replacing human power.
- Investors are looking for more options, including Bitcoin, as they feel less confident in jobs.
As artificial intelligence continues to expand at a surprising pace, it is also affecting the way companies hire people. While people across countries are facing increased AI-driven job losses, Goldman Sachs says that India is less likely to be affected. However, Indians could still feel the pressure of changing hiring trends, shifting wages, and increasing skill demands, with Bitcoin coming into focus.
Now, the question here is different: if AI creates more uncertainty around jobs and income, will it impact Indian’s investment practices? As Bitcoin is often viewed as a long-term investment asset, speculation rises about Indian investors’ possible shift to Bitcoin amid AI-driven job issues.
Goldman Sachs Says India Faces Less AI Job Disruption
In today’s Bloomberg report, Goldman Sachs Chief India Economist Santanu Sengupta stated that India is less affected by artificial intelligence’s massive growth. According to him, the Indian job market is dominated by physical and mechanical roles, making it less vulnerable to AI-driven job disruption.
Currently, construction and retail account for about 40% of India’s workforce. These sectors are less affected by artificial intelligence. “The main reason is because our workforce is pretty large, and a lot of them are in more mechanical or physical kind of tasks,” he added. At the same time, the services sector is more exposed, as jobs in the IT, telecom, and call centre spaces are facing some substitution risks.
In Goldman Sachs’ view, AI could bring more benefits to India than its negative impacts. If the country gradually adopts the technology, AI could add around 0.4% points to India’s overall productivity growth over 10 years. This gain could significantly outweigh potential job losses if AI is introduced in a strategic way. He stated, “The productivity benefits which will outweigh the potential job losses that you can have over a five-year period.”
He believes the productivity gains could outweigh potential job losses if AI is introduced in a measured way. Other parts of the economy, including finance, healthcare, education and business services, could also benefit from AI adoption.
Why India Could Still Face the Pressure?
India may be less exposed to AI-driven job losses than other advanced countries, as noted by Goldman Sachs. But this doesn’t mean that Indian workers are completely protected from the impact of AI. According to Goldman Sachs’ estimations, 17% of tasks performed by India’s non-agricultural workforce could be automated by generative AI. Also, 48% of jobs could benefit from AI through their higher productivity, while around 8% face substitution risks.
A detailed analysis of the Indian labor market gives a better picture. Hiring remains cautious among IT companies. In the fourth quarter of FY26, Infosys’ workforce fell by nearly 8,500, while TCS added 2,356. Wipro added 135, and HCLTech hired 802.
This indicates that the companies have been eliminating their workers and reducing hiring in recent times. As per MoSPI data, the unemployment rate stands at 5.5% in June 2026. Markets are also showing some caution toward the Indian IT field, with the Nifty IT index down about 17%.
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Despite the growing unemployment rate and growing pressure on the IT sector, the crypto industry continues to stay strong in India. As per CoinDCX’s H1 2026 report, Bitcoin is the most-held digital asset across its Indian cities and demographic groups. The exchange has also reported a notable shift from memecoins to assets such as Bitcoin, Ethereum, Solana, and XRP.
RBI data shows that Indian households are continuing to increase their financial savings across different asset classes. Household financial assets rose to ₹34.32 lakh crore in FY2023-24, while bank deposits surged to ₹14.36 lakh crore. Mutual fund investments also rose to ₹2.39 lakh crore as equity investments hit ₹29,080 crore.
The Indian rupee is also another major factor the country cannot ignore. The rupee closed at around 95.40 on August 13. The rupee had faced significant pressure recently, but is now trying to maintain momentum as the RBI has intervened.
Thus, there is also a growing opportunity for Bitcoin in the Indian crypto market amid the AI-driven job issues. For example, if employers seek to diversify their portfolios amid rising job issues, they may prefer investment options like Bitcoin. On the other hand, if employers become less confident about their jobs and income, they may prefer safer investment options like bank deposits and gold.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
