Tech Desk July 14, 2026 at 02:02 PM 2 min readtechanalysis

Nasscom Warns of Declining Deep Engineering Skills Amid AI Expansion

Skills Gap Warning:

A new study by Nasscom warns that India’s deep engineering capabilities may face a decline as artificial intelligence increasingly automates routine tasks. While approximately two-thirds of the country’s young workforce are classified as AI-proficient, only 23% possess the advanced knowledge to be considered AI-native. Experts argue that the industry's current reliance on basic efficiency is creating a dangerous deficit in the technical depth required to innovate beyond repetitive processes.

Innovation Barriers:

Reflecting on the future, Dr. Mashelkar emphasized that India must pivot from purely service-oriented models to creating globally competitive and affordable solutions. He identified the nation's procurement policies, which often prioritize the lowest bidder over genuine innovation, as a critical barrier. This policy environment has historically discouraged firms from investing in high-risk, deep-tech research, leaving the country vulnerable to global competitors who prioritize long-term technological mastery.

Future Outlook:

The shift towards deep-tech and AI is inevitable, yet its success depends on how India reshapes its human capital and policy framework. The call to action is for a dual focus on scaling AI adoption while preserving fundamental engineering rigour. Failure to bridge the gap between basic AI proficiency and deep engineering expertise could hinder the nation's goal to become a global hub for indigenous, high-impact technology. Addressing this requires immediate policy reforms in public procurement and a stronger commitment to advanced technical education.
Pulse Intelligence
Context & Impact
  • India's IT sector is currently undergoing a massive transformation as generative AI enters mainstream corporate workflows.
  • Procurement policies in India have frequently been criticized for favoring cost-efficiency over experimental engineering.
  • Companies may face a talent crunch for roles requiring advanced, non-routine engineering skills.
  • Policy makers may introduce incentives for deep-tech research to counter the over-reliance on basic automation.

Indian IT firms may need to pivot their training budgets toward advanced R&D to maintain long-term competitive margins.