Generative artificial intelligence (AI) is revolutionizing the global economy by automating cognitive processes, increasing productivity, and changing skill requirements. Generative AI offers both potential and challenges in India, where there are more than 500 million workers and the services sector accounts for the majority of the country's economic output. The influence of generative AI on India's workforce is examined in this study, with a particular emphasis on capacity building and skill development. The report emphasizes the workforce reorganization, new job positions, sector-wise transformation, and governmental actions needed to guarantee inclusive growth. The results indicate that although ordinary jobs may be impacted by automation, extensive reskilling and institutional capacity building can establish India as a global center for AI expertise.