Archive · 1 Sep 2026
AI Data Annotation Boom Creates Low-Paying Jobs in India
AI systems need examples before they can recognize things such as cats, cars or drones.
Workers in Noida and Gurugram provide those examples by watching videos and drawing boxes around objects.
They also add labels so computers can learn what each object is.
This work has created many jobs for young Indians and resembles the older BPO industry.
However, the jobs are often repetitive and do not pay much.
Some workers say their breaks, attendance and performance are watched very closely.
Others report few paid holidays and uncertain employment.
Experts believe Indian workers can help AI understand Indian languages, people and culture better.
But the same AI being trained may eventually reduce the need for human annotators.
Thousands of workers in Noida and Gurugram label images and videos to train AI systems.
Data-annotation companies have expanded across India, creating a new form of BPO-style employment.
NASSCOM estimates India-serviced AI annotation could exceed $7 billion by 2030 and involve up to one million workers.
Annotators report repetitive tasks, strict targets, limited leave, phone restrictions and monthly wages of roughly Rs 10,000 to Rs 17,000.
Experts say the work can improve AI’s understanding of Indian languages and people, but automation may eventually reduce these jobs.
- Who
- Thousands of Indian data annotators, technology companies, industry experts and AI developers.
- What
- Workers are labeling and cataloguing images, videos, audio and text to train artificial-intelligence models.
- When
- The industry has expanded over the last five years; the article describes current working conditions and projections through 2030.
- Where
- Mainly Noida and Gurugram in the National Capital Region, with work also moving to remote workers and smaller Indian cities.
- Why
- Global AI developers need large amounts of structured, human-labeled data, while Indian firms provide comparatively low-cost labor and help train models on Indian contexts.
Economic and technological opportunity
Worker costs and job insecurity
Job creation
Economic and technological opportunity
The sector is creating thousands of jobs and could become a new BPO-style economic opportunity for Indian youth.
Worker costs and job insecurity
The available jobs are low-paying, closely monitored and may not provide stable, long-term employment.
Value of annotation
Economic and technological opportunity
Experts say human labeling makes AI more accurate and helps models understand Indian languages, people and cultural contexts.
Worker costs and job insecurity
Workers describe the tasks as mechanical, exhausting and repetitive, with some reporting screen fatigue and feeling like modern-day laborers.
Future of employment
Economic and technological opportunity
Industry participants say data labeling is currently one of the largest categories of jobs created by AI.
Worker costs and job insecurity
Experts and workers warn that improved AI could eventually replace annotators, meaning some employees may be training their own replacements.
- Reported monthly pay
- Workers cited wages ranging from Rs 10,000 to Rs 17,000 per month.
- Projected India-serviced market
- NASSCOM estimates the AI data-annotation market serviced by India could exceed $7 billion by 2030.
- Potential workforce
- NASSCOM projects up to 1 million full-time and part-time workers could be engaged by 2030.
- Registered companies
- Clutch lists more than 80 registered AI data-annotation companies in India.
- Alternative market estimate
- 6Wresearch estimated India’s data-annotation and labeling market at $419 million in 2025, projecting $603 million by 2032.
- Typical tasks
- Annotators identify and label objects such as drones, cats, cars, pedestrians and highways in media files.
- Work conditions reported
- Workers described strict productivity monitoring, repetitive work, restricted phone access, limited leave and uncertain job security.