Indian Economy News

AI could add US$ 1.7 trillion to India’s economy by 2035 as the government scales up its push

India's ambitious foray into AI is likely to change the contours of the economy, with the government estimating that AI could add up to Rs. 1,42,390 crore (US$ 1.7 trillion) to the national economy by 2035, thus making it one of the most formidable growth drivers over the decade to come. To realize this potential, the government has committed Rs. 10,300 crore (US$ 1.2 billion) over five years for the IndiaAI Mission-a strategic program that aims to build seamless computing infrastructure, foster startups, develop indigenous models, and proliferate skilling programs across industries. The mission represents the shift from pilot projects to scalable national impact, with the expanded AI compute capacity now aggregating 38,000 GPUs available for innovators, researchers, and entrepreneurs under subsidized frameworks. Industry-wide adoption of AI will spur productivity, automate processes, and offer new solutions in healthcare, agriculture, manufacturing, financial services, education, governance, and climate action.
Besides economic impact, the AI strategy of India places strong emphasis on inclusion and human capital development. With over six million employment, the technology workforce in India is likely to undergo significant evolution with the opening of new job categories and skill requirements brought about by AI, especially in areas such as data science, AI engineering, and analytics. Efforts toward enhancing AI capabilities in Indian languages and voice-based tools would further close the gap in access, particularly for rural populations and the informal sector. The expanded initiatives on skilling and ecosystem support are likely to trigger innovation and ensure that AI contributes not just to growth metrics but to broader socio-economic upliftment.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.