Adopting Artificial Intelligence (AI) across industries could add $500–600 billion to India’s GDP by 2035, according to a new Niti Aayog report. The study, titled “AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth”, highlights that AI has the power to significantly boost productivity and efficiency, making it a critical driver of India’s economic growth.
Global AI Opportunity
The report also points out that AI adoption worldwide could add $17–26 trillion to the global economy in the next decade. With its strong STEM talent pool, expanding research and development ecosystem, and advancing digital infrastructure, India is well-positioned to capture 10–15% of this global AI value.
Job Creation and Risks
While AI promises huge opportunities, the report warns of challenges as well. It notes that although AI will create new kinds of jobs, it will also replace many existing ones — especially in clerical, routine, and low-skill roles. This shift highlights the urgent need for reskilling and upskilling to prepare the workforce for AI-driven changes.
Key Sectors to Benefit Most
Two industries are expected to benefit the most from AI adoption by 2035:
Financial Services: AI could unlock $50–55 billion in additional growth.
Manufacturing: AI could add $85–100 billion in extra value.
Together, these sectors could see AI contribute as much as 20–25% of their GDP share, giving a major boost to India’s overall economy.
AI as a Growth Engine for Viksit Bharat
In his foreword, Niti Aayog CEO B.V.R. Subrahmanyam stressed that India must achieve at least 8% annual growth to realize the vision of Viksit Bharat (Developed India). He said:
“Artificial Intelligence can be the decisive lever.”
He added that with a sector-specific approach, industries like banking and manufacturing can start using AI immediately to improve efficiency and competitiveness. At the same time, frontier innovations — such as AI-enabled drug discovery and software-defined vehicles — have the potential to become powerful future growth engines for India.
The Way Forward
The report emphasizes that if India invests strategically in AI and ensures its adoption across critical industries, it can not only boost GDP growth but also strengthen its global leadership in emerging technologies.
Irfan Alam