New Delhi: Over 40 per cent of India's IT and gig workforce uses AI tools for automation, analytics and creative production, according to the India Skills Report 2026.

Employability in India has improved to 56.35 per cent, up from 54.81 per cent in 2025, showing steady progress in job readiness and skill adaptability, it said.

The 13th edition of the report, released by Educational Testing Service (ETS) in association with the Confederation of Indian Industry (CII), AICTE and the Association of Indian Universities (AIU), is based on data from over one lakh candidates and 1,000 employers across seven sectors.

India's demographic advantage, with a workforce averaging 28.4 years of age, presents both urgency and opportunity, it noted, adding that women have surpassed men in job readiness for the first time.

The report said India accounts for 16 per cent of the world's AI talent, projected to reach 1.25 million professionals by 2027. Nearly 90 per cent of employees across sectors use Generative AI tools, while 70 per cent of IT and half of BFSI firms have adopted AI-based recruitment.

Hiring intent for FY 2026-27 stands at 40 per cent, driven by technology, BFSI, manufacturing, renewable energy and healthcare.