‘No need to view AI as a threat,’ says Labour Minister Mansukh Mandaviya

Despite the rise of AI and emerging technologies, Union Labour Minister Mansukh Mandaviya argues that the workforce will continue to play a critical role as someone will always be needed to operate and manage these systems. Speaking at the inaugural ceremony of the FICCI-AIOE 3rd Global Industrial Relations Summit, Mandaviya, Minister for Labour, Employment, Youth Affairs and Sports, said that without workers, industries cannot function.

“Times have changed but state remains the same. If there are no employees, the most basic requirement of any industry remains unmet. You can bring in raw materials, but the industry won’t run on its own,” says Mandaviya.

“Technology can fill certain gaps, but only to a point. AI will come, new technologies will emerge, but the need for a skilled workforce will always remain. It is we who have to operate and manage all of this. There is no need to view it as a threat,” he added.

“As time changes, systems change accordingly, technology evolves, and so do requirements. When the telephone was introduced, it sparked similar debates. From telephone to mobile to digital tech, today virtual meetings happen easily and don’t feel like a big deal anymore. Did railway traffic decrease? Did airport traffic go down? No. We have to keep engaging with the times, keep evolving, and accept change. If one job becomes obsolete, we must be ready to explore two new opportunities,” Mandaviya said.

The government recently rolled out a comprehensive plan aimed at accelerating inclusive economic growth. Explaining the rationale, Mandaviya said India is maintaining a steady 6–7% growth rate because it is advancing with a holistic approach, equally focused on industries, employment generation, and poverty reduction. As a result, 25 crore people have risen above the poverty line.

He highlighted that the newly introduced Employment-Linked Scheme is part of a broader set of four strategic interventions, including a national internship programme. These initiatives are designed to energise the entire economy by creating employment and improving workforce readiness.

The government aims to create 5 crore jobs over the next five years. As part of that, the government plans to offer internships to 1 crore youth, placing them in companies ranked among the top 500. He added that such initiatives will help build an international-standard work culture in downstream industries, which is vital for global competitiveness. In order to meet global benchmarks, what sets India apart is our skilled, youthful workforce, something the world lacks, the key lies in how well the country is able to harness that potential.

Earlier this month, the Union Cabinet approved the Employment Linked Incentive (ELI) scheme with a ₹1.07 lakh crore outlay to boost formal job creation, especially in the manufacturing sector. Starting from August 1, 2025, to July 31, 2027, the scheme has two components. Part A offers a one-time wage subsidy (capped at ₹15,000) for first-time workers earning up to ₹1 lakh/month, paid in two instalments after six and twelve months. Part B provides employers in manufacturing with incentives of up to ₹3,000 per employee/month for two years, with continued benefits in years three and four.