AI Poised To Add Trillions To India's Economy, Says NITI Aayog Report

New Delhi, Sep 15 (KNN) India could achieve a GDP of USD 8.3 trillion by 2035 if it harnesses the transformative potential of artificial intelligence (AI), according to a report released by NITI Aayog on Monday.

The projection compares with USD 6.6 trillion under the current 5.7 per cent growth trajectory, highlighting AI as a decisive factor in bridging the gap.

The report, ‘AI-for-Viksit-Bharat: The Opportunity for Accelerated Economic Growth’, was unveiled by NITI Aayog CEO B.V.R. Subrahmanyam, who described AI as a ‘decisive lever’ for economic transformation.

He said achieving the aspirational 8 per cent annual growth rate required for the vision of Viksit Bharat would necessitate a significant boost in productivity and innovation, with AI playing a central role.

The study identifies three major avenues through which AI could accelerate growth: widespread adoption across industries to raise efficiency and productivity, deployment of generative AI to transform research and development, and technological innovation in services to reinforce India’s position as a global hub.

Together, these levers could contribute between 15 per cent and 35 per cent of the growth uplift needed to reach the higher trajectory.

Global AI adoption is estimated to add USD 17–26 trillion to the world economy over the next decade.

NITI Aayog suggests India, with its large STEM workforce, expanding R&D ecosystem, and strong digital infrastructure, could capture 10–15 per cent of this value.

Within the domestic economy, AI-led transformation is expected to account for USD 1.1–1.4 trillion of the incremental growth required to reach the USD 8.3 trillion mark.

The report points to immediate opportunities in sectors such as banking and manufacturing, where AI can drive efficiency, and in frontier areas like AI-enabled drug discovery and software-defined vehicles, which could become new growth engines.

Calling for urgent collaboration, Subrahmanyam said, “With a focused and sector-specific approach, the path to 8 per cent growth runs through decisive AI adoption and innovation.”

(KNN Bureau)