Oracle's decision to lay off approximately 30,000 employees globally, with nearly 12,000 in India, marks a significant moment in the tech industry, reflecting the pressures of the global AI race. The company has invested $39.2 billion in capital expenditures from June 2025 to February 2026, leading to negative cash flow, which has raised concerns among investors. This situation calls for a critical examination of India's digital technology policies, particularly in fostering demand for AI infrastructure. Unlike Oracle, Indian firms lack long-term commitments for AI services, which hinders growth in this sector. Policymakers have focused on supply-side measures, such as subsidies for GPUs, but have neglected to stimulate demand, particularly in application-layer companies. Additionally, the current educational framework does not adequately support the development of a competitive workforce, as the National Education Policy has prioritized incremental changes over substantive pedagogical reform. With the demand for specialized education outpacing supply, the government needs to create incentives for industry investment in workforce upskilling. As AI continues to evolve, India must address these challenges to remain competitive in the global market.