By Yogima Seth Sharma
Copyright indiatimes
Accelerated adoption of Artificial Intelligence (AI) across industries can contribute $500B-$600 billion over and above India’s current GDP growth by 2035, driven by increased productivity and efficiency in the workforce, with 20-25% of the GDP from financial services and manufacturing attributed to AI by 2035, NITI Aayog said.In its report, ‘AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth’, released by the Aayog on Monday, it said AI adoption across industries and transformation of research and development (R&D) can bridge nearly half of the growth gap required to move India from a projected GDP of $6.6 trillion to $8.3 trillion by 2035“If India is to accelerate its growth to the 8% annual rate required for the realization of Viksit Bharat, we have no option but to significantly raise productivity across the economy and unlock new growth through innovation and Artificial Intelligence can be the decisive lever,” NITI Aayog CEO BVR Subrahmanyam said.“With a focused and sector-specific approach, industries such as banking and manufacturing can deploy Al today to improve efficiency, service quality, and competitiveness creating momentum for deeper transformation,” he said. As per the report, accelerating AI adoption across industries could account for 30-35% of the growth step-up, transforming R&D with generative AI could contribute another 20-30% while innovation in technology services could potentially contribute 15-20% to the step up.Live EventsIn financial services, AI could enable hyper-personalised customer experiences, advanced fraud detection, and more inclusive lending, which is expected to unlock $50-55 billion in additional value by 2035.In manufacturing, AI-driven productivity gains, predictive maintenance, and intelligent product design could add $85-100 billion.Impact of AI on jobsThe report said that while AI will create many new roles, it will also displace many existing jobs, particularly in clerical, routine, and low-skill segments.For India, the challenge would be twofold–preparing a workforce with advanced digital and AI skills to capture new opportunities, while simultaneously ensuring that those displaced are gainfully employed through reskilling, redeployment, or absorption into other growth sectors of the economy, it said.Finally, productivity gains and innovation must match market creation to translate into growth, it said, adding, India would need to simultaneously deepen domestic demand and secure stronger participation in global value chains.“This will require alignment of industrial and trade policies, particularly as global rulebooks evolve quickly,” it added.Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onArtificial Intelligence Economic ImpactAI Adoption in IndiaGDP Growth India 2035NITI Aayog ReportNITI Aayog
(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
(You can now subscribe to our Economic Times WhatsApp channel)Read More News onArtificial Intelligence Economic ImpactAI Adoption in IndiaGDP Growth India 2035NITI Aayog ReportNITI Aayog(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition123View all Stories
