Finance Minister Nirmala Sitharaman has launched NITI Aayog's report titled "AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth". According to the report, faster adoption of Artificial Intelligence (AI) across industries can potentially add $500-600 billion to India's GDP by 2035. This growth will be driven by increased productivity and efficiency in the workforce, with financial services and manufacturing expected to benefit significantly.
The report highlights that AI adoption could boost India's GDP by $500-600 billion by 2035, contributing to the country's goal of achieving an 8% annual growth rate. Financial services and manufacturing are expected to see the biggest impact, with AI contributing up to 20-25% of their sectoral GDP by 2035.
While AI will create new roles, it will also displace many existing jobs, particularly in clerical, routine, and low-skill categories. However, AI-led productivity could unlock $50-55 billion in financial services and $85-100 billion in manufacturing over and above the sectors' current growth projections.
Globally, AI adoption could add $17-26 trillion to the economy over the next decade, with India potentially capturing 10-15% of global AI value. NITI Aayog CEO BVR Subrahmanyam emphasized that AI can be a decisive lever for India's growth trajectory, and the country needs to significantly raise productivity across the economy and unlock new growth through innovation to achieve the vision of 'Viksit Bharat'.
