Artificial Intelligence (AI) is poised to become a major growth engine for India’s economy over the next decade. According to a recent report by NITI Aayog, titled AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth, rapid adoption of AI could add ₹44–53 lakh crore (US$ 500–600 billion) to India’s GDP by 2035.
The report highlights India’s unique advantages — a strong STEM talent pool, a growing R&D ecosystem, and robust digital infrastructure — that position the country to capture 10–15% of the global AI opportunity. Key sectors expected to benefit the most include financial services and manufacturing, where AI-led improvements in compliance, fraud detection, risk management, credit decisioning, and process automation could unlock massive additional value.
- Financial services could gain ₹4.4–4.8 lakh crore (US$ 50–55 billion)
- Manufacturing could gain ₹7.5–8.8 lakh crore (US$ 85–100 billion)
India’s Growth Outlook with AI
At the current 5.7% GDP growth trajectory, India’s economy is projected to reach ₹581.7 lakh crore (US$ 6.6 trillion) by 2035. But under the government’s Viksit Bharat vision and with stronger AI adoption, India could accelerate to 8% growth, taking GDP to ₹731.5 lakh crore (US$ 8.3 trillion).
NITI Aayog CEO B.V.R. Subrahmanyam emphasized that decisive AI adoption and frontier innovation — from AI-driven drug discovery to software-defined vehicles — will be key to achieving this ambitious target.
The Workforce Challenge
The report also acknowledges that while AI will create new jobs, it will displace certain routine and low-skill roles. This calls for a sector-specific strategy to reskill the workforce, manage transitions, and ensure inclusive growth.
The Bottom Line
AI is no longer a futuristic concept — it is a powerful economic catalyst. If India acts decisively, strengthens its innovation ecosystem, and prepares its workforce, AI could be the force that propels the country toward its Viksit Bharat goal of becoming a developed economy by 2047.
Source:IBEF
