Could AI Contribute $1.7 Trillion to India's Economy by 2035?

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Could AI Contribute $1.7 Trillion to India's Economy by 2035?

Synopsis

India is poised for a monumental shift towards AI, potentially adding $1.7 trillion to its economy by 2035. With major initiatives underway, this article explores how AI is set to revolutionize various sectors, providing insights into the government's ambitious plans and the potential societal impact.

Key Takeaways

  • AI could add $1.7 trillion to India's economy by 2035.
  • The IndiaAI Mission aims to enhance AI infrastructure.
  • India has deployed 38,000 GPUs for AI development.
  • Major sectors driving AI include healthcare and automotive.
  • Over 89% of new startups are utilizing AI.

New Delhi, Oct 12 (NationPress) India is on the brink of a transformative journey fueled by Artificial Intelligence (AI), with governmental estimates suggesting that AI might inject up to $1.7 trillion into the nation's economy by 2035, as reported on Sunday.

This groundbreaking technology is revolutionizing various sectors—including healthcare, education, agriculture, and governance—making everyday life more intuitive, intelligent, and interconnected.

In alignment with Prime Minister Narendra Modi’s vision of “Making AI in India and Making AI Work for India,” the government is undertaking significant initiatives to cultivate a robust and inclusive AI ecosystem.

A cornerstone of this initiative is the IndiaAI Mission, which received Cabinet approval in March 2024, backed by a budget of Rs 10,371.92 crore allocated over five years.

Since its inception, the mission has achieved remarkable milestones. Initially targeting the deployment of 10,000 GPUs, India has now successfully deployed 38,000 GPUs, enhancing affordable access to cutting-edge AI computing resources.

Managed by IndiaAI under the Ministry of Electronics and Information Technology (MeitY), this mission aims to foster innovation, support startups, enhance data accessibility, and promote responsible AI usage for the public good.

The country's AI and tech landscape is also rapidly flourishing. India’s technology sector is projected to surpass $280 billion in annual revenue this year, employing over 6 million individuals.

Home to more than 1,800 Global Capability Centres, including 500 focused on AI, India boasts around 1.8 lakh startups, with nearly 89 percent of new ventures incorporating AI into their offerings.

As per the NASSCOM AI Adoption Index, India has scored 2.45 out of 4, with 87 percent of enterprises actively utilizing AI solutions.

A recent BCG survey indicated that about 26 percent of Indian companies have attained AI maturity at scale.

Key sectors propelling AI adoption include industrial and automotive, consumer goods and retail, BFSI, and healthcare, which collectively represent nearly 60 percent of AI’s overall value in India.

India's growing stature in global rankings reflects its advancements. The Stanford AI Index ranks India among the top four nations in AI skills, capabilities, and policies, while it also stands as the second-largest contributor to AI projects on GitHub.

A recent report from NITI Aayog titled “AI for Inclusive Societal Development” (October 2025) underscores how AI can empower India's 490 million informal workers by enhancing access to healthcare, education, skilling, and financial inclusion.

The report emphasizes that technology can bridge significant social and economic divides, ensuring that the advantages of AI benefit every citizen.

Point of View

It is imperative to recognize the transformative potential of AI in India. The government's initiatives signify a commitment to innovation and inclusivity, ensuring that the benefits of technology permeate all layers of society. This proactive approach not only positions India as a global AI leader but also promises to uplift millions, particularly those in the informal sector.
NationPress
12/10/2025

Frequently Asked Questions

What is the projected economic impact of AI in India by 2035?
The government estimates that AI could contribute up to $1.7 trillion to India's economy by 2035.
What initiatives is the Indian government implementing for AI?
The IndiaAI Mission, with a budget of Rs 10,371.92 crore, aims to build a robust AI ecosystem and enhance innovation across sectors.
How many GPUs has India deployed for AI?
India has successfully deployed 38,000 GPUs, surpassing its initial target of 10,000.
Which sectors are leading in AI adoption in India?
Key sectors include industrial and automotive, consumer goods and retail, BFSI, and healthcare, accounting for nearly 60% of AI's value.
What is the NASSCOM AI Adoption Index score for India?
India scores 2.45 out of 4 on the NASSCOM AI Adoption Index, with 87% of enterprises actively using AI solutions.
Nation Press