Tamil Nadu's IT sector no longer back office of the world: IT minister Thiagarajan

‘AI won’t take away jobs in short term’

Speaking about AI, Thiagarajan gave a nuanced perspective, acknowledging that while the technology has the potential to automate many jobs, it is not likely to lead to significant layoffs in the near future.

“We’ve already progressed from being merely the back office of the world to handling more high-end work. AI will augment human productivity rather than replace jobs in the short term. It is only in the future that we may see more significant job displacement,” he says, emphasising that this transition will occur gradually.

Need to prepare for AI-driven future

Thiagarajan also outlined the Tamil Nadu government’s efforts to train, reskill, and upskill the youth in preparation for the AI-driven future.

He highlighted the state’s collaboration with global tech giants to offer specialised training programmes. “The ‘Naan Mudhalvar’ scheme focuses on upskilling and reskilling students and recent graduates. In partnership with companies like Oracle, the government is equipping young people with the skills needed in today’s tech-driven economy,” he said.

“We are bringing in programmes that will benefit higher secondary school students and recent graduates, providing them with essential skills for the job market. In the future, we may have to revamp our school curricula to focus less on rote learning and more on logic, reasoning, and scientific awareness are skills that are crucial in today’s world,” he added.

The minister acknowledged that India's historical emphasis on memorisation no longer aligns with the demands of the modern workforce, where critical thinking and problem-solving skills are more important than ever.

Why most techies in TN are locals

Thiagarajan also addressed concerns about the composition of Tamil Nadu’s IT workforce, which is predominantly local. With 80-85 per cent of the state's IT workforce being Tamil, there are questions whether this reflects a lack of diversity, particularly in a global workforce that increasingly values inclusion.

“I’m not promoting this by design,” he asserted. “Given that Tamil Nadu graduates a substantial portion of India’s tech talent, around 20 per cent, it is natural that most of the workforce would be local. However, we are diverse in many ways: in gender, community representation, and skill sets. The market, rather than a deliberate policy, determines the workforce composition,” he said.

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The minister argued that the concept of diversity should extend beyond ethnicity to include factors like gender representation and community inclusion. “If we look at the participation of women in the workforce, for example, we’re doing well compared to global standards. Tamil Nadu’s workforce is already diverse in many meaningful ways.”