India Emerges as a Global AI & STEM Powerhouse Amid Declining Global Talent Mobility

A new Boston Consulting Group (BCG) report reveals a striking contrast in global talent dynamics: while international mobility among highly skilled professionals has fallen sharply for the first time since 2020, India has surged ahead as a rising hub for artificial intelligence and STEM expertise. Global cross-border talent migration dropped by 8.5% year-on-year — roughly 220,000 fewer professionals relocating — yet India expanded its global share of AI and STEM talent, positioning itself among the top ten countries across key skill categories.

This growth comes at a time when traditional talent destinations such as the United States, Canada, and the United Kingdom face tighter immigration policies, economic slowdowns, and growing uncertainty. In this shifting global landscape, India’s talent ecosystem stands out as both resilient and increasingly influential.

India has strengthened its position in global talent mobility despite an overall decline of 8.5% year-over-year. (Representative Image)(Getty Images via AFP) | Livemint

India’s Strengthening Talent Ecosystem

India’s rise is powered by a deep and continually expanding pool of STEM-educated graduates. The country now contributes a significant portion of the world’s AI-ready workforce, supported by universities that are increasingly recognized as global talent factories. According to BCG, seven of the world’s top ten institutions producing AI professionals are based in India, showcasing the country’s strong academic foundation. One such institution, Jawaharlal Nehru Technological University (JNTU), leads globally in producing AI professionals who pursue careers abroad.

The country’s AI and tech ecosystem is also expanding rapidly. Indian enterprises across sectors — from IT and finance to healthcare and manufacturing — are adopting AI-driven solutions at an unprecedented pace. This has fueled demand for advanced digital skills, contributing to India’s ability to attract and retain global talent. Parallel initiatives in public digital infrastructure and government-supported innovation programs have further accelerated the nation’s journey toward becoming a major AI hub.

Growing Employability and Rising Workforce Demand

India’s overall employability continues to rise. The latest India Skills Report notes that national employability has climbed to over 56%, with a steadily increasing share of professionals equipped for data science, AI, cybersecurity, and cloud computing roles. India currently accounts for 16% of the global AI talent pool, and this number is expected to grow significantly. Projections suggest the country may reach 1.25 million AI professionals by 2027 as digital transformation accelerates.

Simultaneously, India’s AI market is estimated to triple to USD 17 billion by 2027. This growth indicates not only rising demand for AI-based products and solutions but also a sharp increase in workforce requirements across emerging roles. However, India may still face a shortage of skilled professionals if upskilling does not keep pace. A Bain & Company report warns that India could confront a shortfall of over one million AI-trained professionals by 2027, underscoring the need for rapid capability development.

Changing Global Talent Patterns and India’s Strategic Position

The fall in global talent mobility reflects broader geopolitical and economic trends. Many developed countries have tightened their immigration systems, making it harder for foreign professionals to move. Europe’s economic challenges and North America’s stricter visa frameworks have further contributed to the decline. Meanwhile, emerging economies — particularly in the Middle East and South Asia — are attracting more international talent due to flexible migration policies and growing economic opportunities.

India now finds itself uniquely positioned as an emerging global talent leader. Its combination of scale, young workforce, academic strength, and rising employability provides a powerful foundation. The country’s rapid digital transformation and increasing investments in innovation have allowed it to become a focal point of global interest — not just as a source of talent but as a destination for cutting-edge work.

Challenges and the Road Ahead

Despite this momentum, India must address key challenges to fully capitalize on its opportunity. The projected AI skills gap highlights the urgency for mass upskilling and reskilling programs. There is also a need to ensure that the quality of education keeps pace with the volume of graduates entering the workforce. Bridging regional disparities in access to AI and digital training remains essential to creating an inclusive talent pipeline.

Strengthening research and development, supporting startups, improving industry-academia collaboration, and investing in vocational and technical education will be critical. India has the potential to set global benchmarks in innovation, but sustained efforts in capability building and ecosystem development are vital to achieving this vision.

The MGMM Outlook

India’s emergence as a global AI and STEM powerhouse reflects a deeper shift in the world’s technological balance. While global talent mobility is shrinking due to stricter immigration rules and economic uncertainty in Western nations, India is rising with confidence — driven by its vast reservoir of STEM graduates, expanding tech infrastructure, and rapidly growing AI ecosystem. With seven of the world’s top ten AI-producing institutions now based in India, the country is no longer just exporting talent but shaping the global innovation pipeline. This rise is reinforced by strong public digital infrastructure, a booming tech industry adopting AI at scale, and an employability rate that now crosses 56%, positioning India as a central force in the future of digital transformation.

India’s growing dominance also highlights the urgency of preparing for the next stage of global competition. The country’s AI market is set to triple to USD 17 billion by 2027, and the workforce may exceed 1.25 million professionals — yet a looming skills shortage reminds us that we must act quickly. As traditional Western destinations close their doors, India must open its own by investing in upskilling, strengthening industry–academia collaboration, and ensuring equal access to digital education across regions. If we seize this moment with strategic intent, India can redefine its global role — not just supplying talent to the world, but becoming a destination where the world’s most important technological breakthroughs are born.

(Sources: Livemint, Tribune India)