Davos 2025: Indian workforce needs to be reskilled, private sector should step up, says minister Jayant Chaudhary

Union minister of state for skill development and entrepreneurship Jayant Chaudhary at Davos 2025

The bulk of the Indian workforce needs to be reskilled to prepare for new technologies, Union minister of state for skill development and entrepreneurship Jayant Chaudhary has said, calling on the private sector to invest in upskilling their employees.

“A large part of the Indian workforce needs to reskill and re-tool themselves for the new technology that is coming. And that re-tooling can only happen if the industry also invests in their own workforce,” Chaudhary told Moneycontrol at the World Economic Forum (WEF) in Davos on January 23.

The government has been engaging with large Indian corporates, who have been receptive to the idea. “It is very important that Indian corporates invest in their own workforce to reskill and upskill, continuously engage (with them) and establish the concept of life-long learning,” the minister said.

Chaudhary likened the current wave of artificial intelligence (AI)-induced disruption to IT and industrial revolutions.

“When there is a new technology, you cannot stop society from evolving and adapting. We just have to adapt. India alone has to be at the forefront of any new technology that comes in. And we are. As much as 16 percent of the global workforce in AI are Indians,” he said.

Talking about the improving state of the Indian startup ecosystem, Chaudhary said the country’s startup world remains vibrant despite geopolitical concerns and macroeconomic headwinds.

“A lot of talent is coming back home. And that is a great sign for the Indian economy… The statistics show that 80 new startups are registered every day in India. This isn’t slowing down despite geopolitical concerns and a slowing global economy. There is a vibrancy to the Indian startup ecosystem,” he said.

Funding has been a challenge for India’s startups. “There are still concerns about funding, VC setups, and the institutional mechanisms to help them go to the next level. Even though we have a very vibrant stock market, I think the whole funding ecosystem for smaller entrepreneurs needs to be strengthened,” the minister said.

The Indian startup space is showing signs of recovery after a funding winter of more than two years. Funding among Indian startups increased 14 percent year-on-year to $10.94 billion in 2024, data from market intelligence firm Venture intelligence shows.

The recovery has largely been spurred by a buoyant public market, as initial public offering (IPO)-bound firms raised large funding rounds. The year 2024 saw 13 startups, including Swiggy, Mobikwik, and Ola Electric, go public, which together raised over Rs 29,000 crore ($3.4 billion). There five such listings in 2023 and just two in 2022.

“Global pension funds and institutional investors are very bullish on the Indian stock market. That is how a lot of startups are getting exits. You see a lot of IPOs coming in, and the investors who back them are getting an exit, and that visibility is very important,” Chaudhary said.