AI for ‘Viksit Bharat’: How Technology is Driving India’s Future Growth: According to a recent report by NITI Aayog, a rapid adoption of AI in India could provide a significant boost to the country’s economy, adding an extra $500-600 billion to the Gross Domestic Product (GDP) by 2035. The report, titled ‘AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth’, views AI as a decisive force for India’s growth trajectory.
AI for ‘Viksit Bharat’:
AI: The New Engine for India’s Economic Growth
The report suggests that AI has the potential to boost productivity and efficiency to unprecedented levels. Globally, the adoption of AI could add $17–26 trillion to the world economy over the next decade. India, with its vast STEM workforce, a growing R&D ecosystem, and strong digital capabilities, has the potential to capture 10–15% of this global AI value. This indicates that India could be a significant participant in the economic benefits generated by AI, not just a consumer.
AI for ‘Viksit Bharat:
Sector-Specific Impact and Employment
The report highlights the potential impact of AI on two key sectors: financial services and manufacturing. It’s projected that by 2035, AI’s contribution to these sectors’ GDP could reach 20-25%. AI-led productivity could unlock an additional $50-55 billion in financial services and $85–100 billion in manufacturing.
However, the report also warns of the challenges that will arise from this rapid AI development. While it will create new job opportunities, it may also displace existing jobs, particularly in clerical, routine, and low-skill categories. This poses a significant challenge that will require upskilling and reskilling the workforce.
A Step Towards ‘Viksit Bharat’
In the foreword to the report, NITI Aayog CEO BVR Subrahmanyam emphasised that for India to achieve its goal of ‘Viksit Bharat’ (Developed India), it needs to maintain an 8% annual growth rate. He stated that to reach this target, the country must significantly increase productivity across the economy and unlock new growth through innovation. AI is expected to be a crucial tool in this endeavour.
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FAQ:
What is the potential economic impact of AI on India?
According to a NITI Aayog report, the rapid adoption of AI has the potential to add $500-600 billion to India’s GDP by 2035. This would significantly boost productivity and efficiency, helping India achieve its ‘Viksit Bharat’ (Developed India) goal.
Which sectors will be most affected by AI in India?
The report highlights that the financial services and manufacturing sectors are expected to see the biggest impact. AI could contribute up to 20-25% of their sectoral GDP by 2035, adding tens of billions of dollars to each.
Will AI create or destroy jobs in India?
AI is expected to do both. While it will create new roles, the NITI Aayog report cautions that it will also displace many existing jobs, particularly in clerical, routine, and low-skill categories. This emphasises the need for a focus on upskilling and reskilling the workforce.
How does India’s AI potential compare to the global trend?
Globally, AI adoption could add $17–26 trillion to the world economy over the next decade. The report states that India, with its large STEM workforce and strong digital capabilities, is well-positioned to capture 10-15% of this global AI value.
What is the ‘AI for Viksit Bharat’ report about?
This report, published by NITI Aayog, outlines how AI can be a key driver for accelerating India’s economic growth. It projects the potential GDP boost from AI adoption, identifies key sectors for growth, and addresses the challenges and opportunities for India in the global AI landscape.