“The key to artificial intelligence has always been the representation.” – Jeff Hawkins, Neuroscientist and Founder of Numenta
Accelerating growth through AI adoption
India’s rapid adoption of artificial intelligence (AI) across industries could add between $500–600 billion to the nation’s GDP by 2035, according to a NITI Aayog report. The study titled AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth highlights AI as a transformative force that could raise India’s GDP from a projected $6.6 trillion to $8.3 trillion within the next decade.
Financial services and manufacturing as AI engines
The report identifies financial services and manufacturing as the two strongest growth drivers, potentially contributing 20–25% of the AI-led GDP increase. With enhanced efficiency, productivity, and innovation, these sectors are expected to anchor India’s move toward the Viksit Bharat 2047 vision.
Transforming innovation and R&D
AI is also expected to revolutionize research and development, particularly through generative AI, which could contribute an additional 20–30% to economic output. Innovation in technology services alone might add 15–20%, driven by automation and intelligent digital tools that enhance productivity across industries.
Unlocking new opportunities
By 2035, the report projects India’s GDP to grow by about $1.7 trillion due to AI integration. NITI Aayog CEO BVR Subrahmanyam emphasized that AI can be a decisive lever in achieving 8% annual growth, vital for realizing the Viksit Bharat vision. Sectors like healthcare, aerospace, and education are also poised for AI-led transformation.
Path to competitiveness
The report calls for accelerated adoption of AI across sectors to provide higher-value solutions, reduce costs, and improve access. This, the report notes, could enhance India’s global competitiveness and foster inclusive development powered by technology-driven innovation.
Summary
The NITI Aayog report projects that India’s AI adoption could add $600 billion to GDP by 2035. Financial services and manufacturing will lead the charge, while generative AI and innovation in R&D will further accelerate growth, transforming productivity and competitiveness across industries.Food for thought
Will India’s workforce and education system evolve quickly enough to fully harness the power of AI-driven growth?AI concept to learn: Generative AI
Generative AI refers to systems that can create new content text, images, music, or code by learning from existing data patterns. It represents one of the most powerful AI advancements, enabling innovation in design, creativity, and problem-solving across industries.
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