Increased adoption of AI can add US$ 500-600 billion to GDP by 2035: NITI report

A NITI Aayog report titled AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth estimates that rapid adoption of artificial intelligence (AI) could add Rs. 44,07,000- 52,88,400 crore (US$ 500-600 billion) to India’s Gross Domestic Product (GDP) by 2035 through significant productivity and efficiency gains. Highlighting India’s strong STEM workforce, expanding Research and Development (R&D) ecosystem, and digital capabilities, the report said the country could capture 10-15% of the global AI opportunity, with financial services and manufacturing emerging as key beneficiaries. AI-led improvements in compliance, fraud detection, risk management, and credit decisioning could unlock an additional Rs. 4,40,700- 4,84,770 crore (US$ 50-55 billion) in financial services and Rs. 7,49,190-8,81,400 crore (US$ 85-100 billion) in manufacturing over and above current growth projections.
At the present 5.7% growth trajectory, India’s GDP is expected to reach Rs. 5,81,72,400 crore (US$ 6.6 trillion) by 2035. However, with an aspirational 8% growth path under the government’s Viksit Bharat vision, GDP could rise to Rs. 7,31,56,200 crore (US$ 8.3 trillion). CEO, NITI Aayog, Mr. B.V.R. Subrahmanyam stressed that decisive AI adoption and frontier innovation, from AI-enabled drug discovery to software-defined vehicles, will be critical to achieving this target. The report acknowledged that while AI will create new jobs, it will also displace routine and low-skill roles, underlining the need for a sector-specific strategy to harness opportunities and manage workforce transitions.

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