SynopsisNandan Nilekani says large corporations may shed more jobs due to automation, while small enterprises will create new employment. India's future job growth will stem from millions of small businesses and entrepreneurs, he says.IANSSmaller companies are more resilient or more impervious to job losses linked to AI, Nilekani thinks.Infosys co-founder Nandan Nilekani on August 6 called for a fundamental shift in the "mental model" of how India views job creation.India's employment landscape is set for a structural shift as artificial intelligence and automation reshape the nature of work, with large corporations likely to shed jobs while millions of small enterprises emerge as the country's biggest source of new employment, he said during his address at the NCAER India Policy Forum 2026.Nilekani said the long-held assumption that large companies would remain the principal generators of employment may no longer hold true as AI increasingly automates routine and standardised tasks.According to him, large organisations are particularly exposed because many roles are built around clearly defined processes that can be automated more easily. As companies adopt AI at scale to improve productivity and reduce costs, employment growth in these enterprises could slow significantly, with some becoming net job losers over time.Future job hotspotsHe suggested that India's future employment engine would instead be its vast base of small businesses and entrepreneurs. Unlike large corporations, smaller firms typically perform diverse functions, operate with greater flexibility and have more varied workflows, making them less susceptible to wholesale automation. As a result, they are expected to account for a larger share of new jobs in the economy.Also read | Status shuffle: Tata Sons makes RBI’s upper-layer NBFC listNilekani said the country's growth model should increasingly focus on enabling millions of enterprises rather than relying on a handful of companies to absorb large numbers of workers.In his view, broad-based entrepreneurship, where numerous businesses each generate a small number of jobs, would be a more sustainable model for employment generation than expecting a few large employers to undertake mass hiring.He projected that India could have around one million startups by 2035, a sharp increase from the roughly 1,50,000 startups operating today. Such an expansion, he said, would significantly widen the country's entrepreneurial base and create fresh employment opportunities across sectors.To support this transition, Nilekani called for extensive deregulation and a simpler business environment for entrepreneurs.He stressed that compliance requirements should not become a barrier for small enterprises and said policy should focus on making it easier for businesses to start, operate and expand.Also read | Cabinet approves ₹23,731 crore GOBARdhan schemeHe highlighted the role of digital public infrastructure in supporting smaller firms. Platforms such as the Reserve Bank of India's Account Aggregator framework and the Open Network for Digital Commerce can improve access to finance, markets and digital services, helping entrepreneurs scale their businesses without facing the traditional constraints associated with small enterprises, he said.Change in nature of employmentNilekani also said the nature of employment itself is changing rapidly. The conventional model of workers spending their entire careers with a single employer is gradually giving way to a more dynamic labour market characterised by frequent job changes, independent work and gig-based engagements.Given this shift, Nilekani advocated the creation of portable benefits and portable professional credentials that would remain with workers irrespective of where they are employed.Such systems, he said, would provide greater security and flexibility for a workforce that is increasingly expected to move across employers, projects and platforms during the course of their careers.The remarks come as businesses across industries accelerate investments in AI-driven technologies, even as policymakers and industry leaders continue to debate their long-term impact on employment, productivity and economic growth.Read More News onRead More News on