Artificial intelligence and automation are revolutionizing the global economy, including the Indian Labour market. These technologies have revolutionized India's industry and job economy. This Chapter examines how AI and automation affect India's Labour market, including job displacement, skill mismatch, income disparity, and informality. The Chapter demonstrates the importance of having flexible policies to mitigate the adverse effects on vulnerable parts of the Labour force. However, it also highlights opportunities, such as the emergence of new job categories and the demand for skills aligned with the evolving technological landscape. Policymakers play a crucial role in navigating this transition, emphasizing the importance of policies that foster innovation, entrepreneurship, and workforce reskilling. It reveals that strategic investments in education, infrastructure, and policy reforms are necessary to maximize the advantages of these technologies while minimizing their Labour market implications.