Technology
India ranks 13th Globally in AI Economy Readiness: But Faces a Defining Skills Divide
Strong rankings, rising investments, and a vast digital workforce signal progress in AI Economy, but gaps in skills and workforce readiness could shape the country’s AI future
While concerns about AI-driven job disruption persist among young people in India, the country’s expanding digital workforce and rising investments are also opening up significant opportunities particularly in building AI-driven startups and participating in a rapidly evolving AI economy. India has been ranked 13th globally for AI-economy readiness in the QS World Future Skills Index 2027, highlighting its strengths while pointing to challenges that could shape its future trajectory.
India Gains Ground in the Global AI Race
The report, which evaluates 89 countries on their readiness to develop and apply skills in an AI-driven economy, underscores India’s rapid progress while flagging critical gaps in workforce preparedness. India also ranks first in South Asia and among lower-middle-income countries, reflecting its structural advantage despite persistent challenges.

“The size of India’s digital workforce is rapidly attaining a scale that few other countries can match. It already possesses the world’s largest IT workforce, and the largest number of tertiary-educated individuals in the world. These ingredients give India the potential to be the fastest-growing economy in the world over the next decade”, said, QS President, Nunzio Quacquarelli.
India’s rise is driven by the scale of its digital ecosystem. With the world’s largest IT workforce, about 5.8 million professionals and a substantial pool of graduates, the country is emerging as a significant player in the global AI landscape. This momentum is also visible at the city level, with Bengaluru ranking second in Asia’s AI-native cluster standings, behind Beijing, and 15th globally among the world’s top startup ecosystems, with a total ecosystem value of $153 billion.
Scale Without Skill? The Emerging AI Divide
Despite strong economic fundamentals reflected in a perfect economic capacity score of 100, and a fifth-place global ranking in the “Future of Work” category, India’s AI trajectory is increasingly defined by a widening skills gap. While AI investments reached $90 billion by early 2026 and could add up to $500 billion to the economy by 2030, the risk of uneven distribution of these gains remains high.
This emerging AI divide is most visible in the gap between industry demand and workforce readiness. India ranks 18th in skills alignment but drops sharply to 73rd in human capital, raising concerns over the quality and consistency of graduates. As automation accelerates, this imbalance could shape the country’s economic future. A key challenge lies in balancing AI-augmented jobs with AI-driven automation, as a larger share of India’s workforce remains vulnerable to displacement rather than productivity gains.
The Gap That Will Shape India’s AI Future
Sectors such as business process outsourcing and call centres face rising exposure to automation. While some may lag behind like in agriculture. Closing this divide will require systemic reform. Beyond upskilling, there is an urgent need for lifelong learning and closer alignment between education policy, industry demand, and institutional frameworks. With rapid stronger collaboration between academia and employers, and reforms like National Education Policy 2020 India can reach its AI ambitions.
As AI reshapes global economies, both the challenge and opportunity for India lies in whether it can convert its vast human capital into a skilled, future-ready workforce capable of sustaining long-term growth.
Technology
MIT’s New Chipmaking Method Brings Molecular Electronics Closer to Reality
A new fabrication technique developed by MIT researchers could make molecular electronics practical, opening possibilities for faster computing, smarter sensors and more energy-efficient devices.
The race to make electronic devices smaller and more powerful has reached a point where conventional materials are approaching their physical limits. Scientists have long believed that molecules—the tiny clusters of atoms that make up matter—could offer a way forward. They are incredibly small, their properties can be customised, and they hold promise for building faster computers, advanced sensors and quantum technologies.
The challenge has been finding a way to integrate these fragile molecular materials into electronic devices without damaging them.
Researchers at the Massachusetts Institute of Technology (MIT) now say they have found a solution. Their newly developed fabrication platform allows delicate molecular materials to be incorporated into electronic devices using existing semiconductor manufacturing techniques while preserving their structure and performance. The findings have been published in Nature Nanotechnology.

Molecular Electronics: Why Molecules Matter
Unlike conventional electronic materials, molecules can be chemically designed to perform specific functions. This flexibility makes them attractive for applications ranging from memory devices and optical technologies to emerging forms of computing.
However, traditional chip manufacturing relies on high temperatures, harsh chemicals and complex processing steps that can easily destroy molecular structures. As a result, molecular electronics has largely remained confined to laboratory experiments rather than practical devices. The MIT team’s approach aims to bridge that gap.
Building First, Adding Molecules Later
Instead of exposing molecules to conventional manufacturing processes, the researchers reversed the sequence. They first fabricated the electronic device using standard semiconductor techniques. Only after the device structure was complete did they introduce the molecular layer.
To create the final electrical connection, the researchers relied on forces that naturally exist at the nanoscale. As the liquid containing the molecules evaporated, capillary forces gently pulled two metal electrodes together, trapping the molecular layer between them. Another natural interaction, known as van der Waals force, then held the structure firmly in place.
The process avoided mechanical damage while creating stable electrical contacts with molecules less than one nanometre thick.
A Breakthrough in Reliability
The researchers fabricated more than 1,000 molecular electronic devices using the technique. Around 96 percent functioned successfully—a remarkably high yield for molecular-scale electronics.
Equally significant was their durability. The devices continued to operate reliably after tens of thousands of electrical cycles without signs of degradation, addressing one of the biggest obstacles that has slowed the development of molecular electronics.
The team also demonstrated interconnected arrays of molecular memory devices, suggesting the method can support larger circuits rather than isolated experimental components.
Lab to Real World Technologies
The significance of the work extends beyond improving individual devices. By making molecular materials compatible with existing chip manufacturing, the technique could accelerate research into entirely new classes of electronic systems.
Potential applications include ultra-low-power computing, high-performance sensors, photonic technologies and quantum devices that operate at scales far smaller than today’s electronics.
Rather than replacing conventional semiconductor manufacturing, the platform complements it by enabling new materials to be integrated into existing fabrication processes.
As researchers continue to push the limits of miniaturisation, this approach could help move molecular electronics from experimental research into technologies that shape future generations of computing.
Technology
What Nitrogen-Fixing Microbes Could Teach Us About Cleaner Fertiliser
MIT research into nitrogen-fixing enzymes reveals how microbes efficiently convert atmospheric nitrogen into ammonia, offering clues for developing cleaner and more energy-efficient fertiliser production.
Nitrogen makes up nearly four-fifths of the atmosphere, but turning that abundant gas into a fertilizer plants can use is not easy. The nitrogen molecule, N₂, is held together by one of the strongest chemical bonds in nature.
However, some microbes, using enzymes called nitrogenases, convert atmospheric nitrogen into ammonia, which can then be used to build proteins and other essential molecules.
Now, studies from researchers at the Massachusetts Institute of Technology (MIT) are helping explain why one class of these enzymes works so well. The findings could eventually guide the design of synthetic catalysts for producing ammonia with less energy, a possibility that could matter for the future of fertiliser manufacturing.
The Tiny Chemical Trick Behind Nitrogen Fixation
Nitrogen-fixing enzymes, called nitrogenases, come in three main types depending on the metal at their active site: molybdenum, vanadium, or iron. Among these, the molybdenum-based version is the most efficient at converting nitrogen gas into ammonia. But scientists have long wondered why this is the case, especially since iron is thought to be the main site where nitrogen actually binds.
To investigate this, MIT researchers studied simplified versions of the enzyme using iron–sulfur clusters. They found that larger metal atoms like molybdenum and tungsten helped the cluster hold N₂ gas more strongly, while smaller metals such as iron, vanadium, and chromium did not show the same effect.
A follow-up study suggested an explanation: molybdenum may not need to directly bind nitrogen at all. Instead, it can influence nearby iron atoms through electronic interactions, making it easier for iron to transfer electrons to nitrogen. This electron transfer is a key step in weakening the strong nitrogen bond so it can eventually be converted into ammonia. In simple terms, it means that molybdenum seems to assist iron in doing the hardest part of the reaction.
From Microbial Enzymes to Cleaner Ammonia
Ammonia is the starting point for most N₂ fertilisers, including urea. Industrial ammonia production relies mainly on the Haber-Bosch process, which requires substantial energy. That makes ammonia production an important target for efforts to decarbonise the fertiliser sector.

The MIT findings offer a design principle that catalysts may be made more effective by getting different metals to cooperate electronically. If such principles can eventually be translated into robust synthetic catalysts, they could help researchers explore ammonia production under less energy-intensive conditions.
Why This Matters to India: Green Ammonia
For India, the question is particularly relevant because ammonia sits at the centre of the fertiliser system. Producing it through the conventional Haber–Bosch process is highly energy-intensive, requiring high temperatures and pressures and accounting for a significant share of global industrial energy use, largely supplied by fossil fuels. This not only adds to production costs but also links fertiliser prices to energy markets. The country has also faced periodic fertiliser shortages and import dependence, making efficient and lower-energy ammonia production strategically important.
India is already building a policy framework around green ammonia. The Ministry of New and Renewable Energy issued a Green Ammonia Standard for India in February 2026, while projects for green ammonia production are being developed across states including Karnataka, Tamil Nadu, Odisha, Rajasthan and Andhra Pradesh.
That makes the MIT research relevant beyond the laboratory. The bigger challenge is still ahead. Nitrogenase is an extraordinarily complex biological system, and reproducing its efficiency, stability and selectivity in an industrial catalyst remains difficult.
But microbes have already demonstrated that atmospheric nitrogen does not have to remain chemically out of reach. The real challenge now is whether scientists can translate this biological solution into a process that is efficient, stable, and scalable enough for industrial use.
Technology
Can Integrated Clean Energy Reshape India’s Steel Industry?
India’s steel industry is expanding rapidly, but reducing its carbon footprint remains a major challenge. A new study suggests that integrating renewable electricity with green hydrogen could make low-carbon steel more affordable by cutting energy waste and limiting cost increases. The findings offer fresh insights into how smarter energy planning could support India’s green steel ambitions.
India’s steel industry is at a pivotal moment. As the world’s second-largest crude steel producer, India plans to expand production capacity to 300 million tonnes by 2030-31. Steel will be central to the country’s infrastructure, housing, renewable energy and manufacturing ambitions. But the sector is also one of India’s biggest climate challenges.
Unlike the power sector, steel cannot be decarbonised simply by switching to renewable electricity. Its production relies on high-temperature processes and chemical reactions that still depend largely on coal. According to India’s draft National Steel Policy 2025, cited by Reuters, the steel sector contributes 10–12% of the country’s greenhouse gas emissions. Producing one tonne of finished steel emits 2.65 tonnes of CO₂, well above the global average of 2 tonnes.
A recent analysis by climate-tech think tank TransitionZero suggests the solution may lie in rethinking how clean energy is used. Rather than viewing renewable electricity and green hydrogen as separate technologies, the study explores whether integrating the two could make steel production cleaner without substantially increasing costs.
The challenge of Replacing Coal
Much of the push to decarbonise steel has centred on green hydrogen, which can replace coal or natural gas in direct reduced iron (DRI) production. Recognising its potential, India launched the National Green Hydrogen Mission, targeting 5 million metric tonnes of green hydrogen annually by 2030.
However, green hydrogen remains costly because its production requires large amounts of renewable electricity. A 2021 study by the Council on Energy, Environment and Water (CEEW) found that steel produced entirely with green hydrogen is unlikely to become commercially competitive before 2040 unless production costs fall significantly. The challenge, therefore, is not just developing cleaner fuels, but using clean energy more efficiently.
Steel Industry: Rethinking How Clean Energy is Used
Solar and wind farms generate electricity for the grid, while hydrogen producers source renewable power independently. TransitionZero argues that this approach overlooks a significant opportunity for steel industry. The researchers simulated how India’s projected electricity grid would operate in 2030, analysing every hour of the year to identify when surplus renewable electricity could be used to produce green hydrogen instead of being wasted.

Solar power generation often exceeds demand during the day, leaving the grid unable to absorb all the electricity produced. Instead of curtailing this surplus renewable energy, the report proposes using it to power electrolysers that produce green hydrogen. The hydrogen can then be stored and used in steel production when renewable electricity is less abundant.
According to the analysis, this integrated approach could reduce renewable energy curtailment by up to 90 per cent while increasing steel production costs by only around 3 per cent. Steel plants sourcing 70 per cent carbon-free electricity every hour and replacing 20 per cent of natural gas with green hydrogen could significantly cut emissions without substantially raising costs. The findings suggest that better coordination between renewable electricity and hydrogen may be as important as the technologies themselves.
Building on Evidence
The idea of combining multiple technologies to decarbonise steel industry is not new. The International Energy Agency identifies hydrogen-based direct reduced iron, electric arc furnaces, steel recycling and energy efficiency as key pathways to achieving net-zero steel production. Similarly, the Council on Energy, Environment and Water (CEEW) has argued that India should prioritise expanding renewable electricity while gradually introducing green hydrogen as costs become more competitive.
TransitionZero builds on these recommendations by focusing on how these technologies can work together. Rather than treating renewable electricity and green hydrogen as separate solutions, the study shows that integrating them can improve energy use, reduce costs and lower emissions. The findings underscore a broader shift in industrial decarbonisation—from adopting cleaner technologies to designing smarter, more integrated energy systems should be used in steel industry.
A Question of Competitiveness, Not Just Climate
Although India consumes most of the steel it produces domestically, exporters are preparing for stricter environmental standards in international markets. The European Union’s Carbon Border Adjustment Mechanism (CBAM), which will gradually impose carbon costs on imported steel and other emissions-intensive products, could increase costs for producers with high carbon footprints.
Reducing emissions is therefore no longer solely about meeting climate targets. It is increasingly linked to maintaining access to export markets and improving industrial competitiveness.
Indian steelmakers have already begun responding. Companies including Tata Steel, JSW Steel and ArcelorMittal Nippon Steel India are investing in renewable energy, exploring hydrogen-based technologies and testing lower-carbon production processes. These projects remain at an early stage, but they indicate that the steel industry’s transition has already begun.
Planning the Transition Of Technology
India has no shortage of technologies capable of reducing emissions from steel production. Renewable electricity is expanding rapidly, hydrogen technologies are maturing and electric arc furnaces are becoming more efficient. The greater challenge lies in connecting these pieces into a coherent industrial strategy.
As India’s steel industry moves towards its 300-million-tonne ambition, success will depend less on efficiently designing energy systems that work together. Cleaner steel industry may ultimately depend not on one revolutionary technology, but on rethinking how India’s energy and industrial systems operate together.
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