A new Niti Aayog report has highlighted that faster adoption of Artificial Intelligence (AI) across industries could boost India’s economy by $500–600 billion by 2035. The report, titled “AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth”, stresses that AI will be a game-changer in improving productivity and efficiency, making it a critical driver of India’s long-term growth.
AI’s Global Impact
On a global scale, AI adoption could add between $17 trillion and $26 trillion to the world economy over the next decade. With its large STEM workforce, strong R&D ecosystem, and rapidly growing digital infrastructure, India is well-placed to capture nearly 10–15% of this global AI opportunity, the report noted.
Job Creation and Job Risks
While AI promises massive economic benefits, the report also cautions about risks. It predicts that AI will create new opportunities but also replace many existing jobs, especially those involving clerical work, repetitive tasks, and low-skill roles.
Sectors That Will Benefit the Most
Two major industries — financial services and manufacturing — are expected to witness the biggest transformation:
Financial services: AI could add $50–55 billion in extra growth by 2035.
Manufacturing: AI adoption could unlock $85–100 billion in additional value.
In both sectors, AI could contribute as much as 20–25% of their GDP share by 2035.
A Push Toward Viksit Bharat
In his foreword, Niti Aayog CEO B.V.R. Subrahmanyam stressed that India needs sustained 8% annual growth to achieve the vision of Viksit Bharat (Developed India). To reach this target, boosting productivity and driving innovation are key.
“Artificial Intelligence can be the decisive lever,” he said, emphasizing that sector-specific AI strategies can help industries like banking and manufacturing become more efficient today. At the same time, frontier applications — such as AI-enabled drug discovery and software-defined vehicles — could serve as engines of growth in the future.
The Road Ahead
With targeted investment, innovation, and adoption of AI-driven solutions, India has the potential to not only safeguard its economic growth but also emerge as a global AI leader in the coming decade.
Irfan Alam