Neelkanth Mishra, the Chief Economist at Axis Bank, recently shared positive news regarding India's job market. He spoke at an event held by the Internet and Mobile Association of India (IAMAI) in Mumbai. Mishra addressed the fear that Artificial Intelligence (AI) might lead to massive job losses in the IT sector. He stated that while things are changing, there is no need for panic or paranoia among workers and students.

According to Mishra, the IT sector is simply shifting its focus. Companies will need to reskill their employees (training staff in new skills) and change their business plans. He noted that India's services exports are still growing very fast. In April, these exports grew by 15 percent in dollar terms. This growth rate is actually faster than the overall GDP (Gross Domestic Product) growth of the country, which shows the industry is still very healthy.

One big change is where the work happens. Because of AI, many companies are moving work from outside vendors to their own in-house teams. These are often called Global Capability Centres (GCCs). Mishra explained that even if some traditional IT firms see changes, the work is simply moving to these GCCs. When you look at both groups together, the overall revenue for the industry remains strong even as the organizational boundaries shift.

For job seekers and bank aspirants, it is important to know which skills are in demand. Mishra highlighted that companies are looking for experts in design, User Interface (UI), and User Experience (UX). While routine coding jobs might change, there is a fresh demand for people who can deploy AI tools and design better products. The transition will require a lot of effort from IT service companies to retrain their current staff effectively.

He also mentioned a concept called the Jevons paradox. This idea suggests that when something becomes cheaper or more efficient, people tend to use it more. In this case, as AI makes writing software cheaper, the total amount of software being created will actually go up. This means the overall demand for software services will stay high, even if it is easier to produce than before. This is why widespread unemployment in the sector is unlikely.

Looking at the wider economy, the Axis Bank economist is very optimistic. He pointed out that energy prices are falling globally. Lower energy costs act as a boost for India's growth momentum. He expects that the strong growth seen earlier this year will return soon. He believes India can maintain a growth rate of 7.5 to 8 percent over the next two years as the economy revives from a brief slowdown.

For Indian bankers, this news is significant. A strong IT sector and high export growth mean better business for banks through corporate loans and foreign exchange services. Additionally, as companies invest in AI and reskilling, they will seek more financial support. Customers also benefit from a stable job market, which ensures steady deposits and loan repayments for the banking system.

In conclusion, the message from the Axis Bank chief economist is one of adaptation rather than fear. While AI is a powerful force that changes how we work, it is also creating new opportunities. Bankers and IT professionals should focus on learning new tools and staying updated on how technology is being used in their specific fields to stay ahead in the coming years.