A NITI Aayog report has estimated that faster adoption of Artificial Intelligence (AI) across industries could add between $500–600 billion to India’s GDP by 2035, mainly by improving productivity and efficiency in the workforce.
The report, ‘AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth’, noted that AI adoption worldwide is projected to add $17–26 trillion to the global economy over the next decade.
AI Adoption Could Boost India’s GDP by $500–600 Billion by 2035: NITI Aayog Report
India is seen as well-positioned to benefit from this transformation, thanks to its large STEM workforce, expanding R&D ecosystem, and growing digital and technological strengths. The report suggests that the country could potentially capture 10–15% of global AI value.
While AI is expected to create new jobs, it will also replace many existing ones, particularly in clerical, routine, and low-skill roles.
As per the report, “Accelerated adoption of AI across industries can contribute $500 billion-$600 billion over and above India’s current GDP growth by 2035, driven by increased productivity and efficiency in the workforce.”
The sectors most likely to see a major impact are financial services and manufacturing, where up to 20–25% of sectoral GDP could be linked to AI by 2035.
In financial services alone, AI-led improvements in efficiency and productivity could contribute an additional $50–55 billion to growth, over and above current estimates.
AI is expected to transform areas such as automated compliance, fraud detection, and risk management, supported by advanced anomaly detection methods and privacy-preserving analytics like federated learning and secure multi-party computation.
NITI Aayog Introduces AI for Viksit Bharat Roadmap
NITI Aayog has launched two key initiatives under its Frontier Tech Hub: the AI for Viksit Bharat Roadmap: Opportunity for Accelerated Economic Growth and the NITI Frontier Tech Repository.
The AI roadmap presents a practical action plan to convert the potential of AI into measurable results.
It identifies two major levers of impact:
- Accelerating AI adoption across industries to improve productivity and efficiency.
- Using generative AI to transform research and development, enabling India to leapfrog into innovation-driven opportunities.
Debjani Ghosh, Distinguished Fellow at NITI Aayog and Chief Architect of the Frontier Tech Hub, emphasized that the next wave of mega technological shifts will be even more disruptive than AI itself.
She stressed that for India to take a leadership role, the country must anticipate these trends early, build strong and reliable roadmaps, strengthen supply chains, set global standards, and form robust international alliances.
