New Delhi — Artificial intelligence (AI) could reshape India’s economic future, potentially boosting gross domestic product by as much as ₹50 to ₹60 lakh crore by 2035, according to a report released Monday by NITI Aayog, the government’s top policy think tank.
The report, AI for India’s Transformation: Opportunities, suggests that rapid adoption of AI across industries — including manufacturing, logistics, financial services, healthcare and education — could accelerate India’s annual growth rate from the current 5.7 percent to nearly 8 percent. Such a jump, it said, would translate into an additional ₹6.6 lakh crore in annual output and a cumulative impact of over ₹8.3 lakh crore by 2035.
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Productivity Gains and New Jobs
AI is expected to deliver its most transformative effects in finance, retail, logistics and healthcare, with efficiency gains ranging between 20 and 25 percent. Over the long term, that could add more than ₹100 lakh crore in value to the broader economy.
But experts caution that the shift will not be painless. While new forms of employment will emerge, automation could displace workers in routine, low-skill jobs.
“AI carries immense promise, but its expansion must be managed responsibly,” Finance Minister Nirmala Sitharaman said. “The challenge is not only about protecting jobs, but also about ensuring innovation aligns with our social values and ethical frameworks.”
India in the Global AI Race
India’s projections arrive as global powers like the United States, China and Europe pour vast sums into artificial intelligence. Analysts say India’s comparative advantage lies in its digital infrastructure, its large consumer base and a deep pool of engineering talent.
“India is at a turning point,” said one technology policy analyst. “If the country can strike a balance between innovation and responsibility, it could transform its domestic economy and position itself as a formidable player in the global AI race.”