New Delhi: Artificial Intelligence has the power to transform India’s economic growth in the coming decade as it could add up to $1.9 trillion to the country’s economy by 2035, according to a new report by NITI Aayog on Monday. Globally, AI adoption is expected to generate $17–26 trillion in value over the next ten years, as per the report titled ‘AI for Viksit Bharat: Roadmap for Accelerated Economic Growth’.
India has the potential to capture 10–15 per cent of this value by making use of its strong STEM talent and research ecosystem. “If AI is fully adopted, India’s GDP could rise to $8.3 trillion by 2035, compared to $6.6 trillion at the current growth pace. AI could help bridge 30–35 per cent of the country’s growth gap,” the report stated.
The report highlights banking, manufacturing, and research-heavy industries like pharmaceuticals, electric vehicles, aerospace, and semiconductors as key sectors where AI can drive big change.
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Generative AI, in particular, could cut research costs, reduce entry barriers in billion-dollar industries, and speed up innovation in fields such as biopharma, auto components, and SpaceTech. To support this shift, the government has launched the IndiaAI Mission with a budget of over Rs 10,000 crore.
It will focus on building India-specific large language models, deploying 38,000 GPUs, and setting up AI labs in Tier-2 and Tier-3 cities to spread adoption across the country.
However, the report also points out challenges. Many MSMEs still lack access to infrastructure and data. India also faces a shortage of skilled professionals in robotics, chip design, and battery technology.
Consent-based data sharing, strong policy frameworks, and reskilling workers will be essential, especially since AI could reshape 35–40 per cent of jobs worldwide. The report calls for urgent collaboration between government, industry, and academia to make India the “data capital of the world” and a hub for frontier technologies.
Alongside this, NITI Aayog also launched the ‘Frontier Tech Repository’, which showcases over 200 real-life examples of how frontier technologies are improving lives across India. It will also help states replicate successful solutions and encourage large-scale adoption.
NITI Aayog CEO B.V.R. Subrahmanyam said India cannot become a developed nation without investing in frontier technologies.
“If we have to capitalise on technology, we need to be a step ahead. Spotting trends, creating awareness, and using these technologies will make India future-ready,” he said.
