NEW DELHI [India], December 30 (ANI): Artificial Intelligence (AI) is projected to contribute up to USD 1.7 trillion to India’s economy by 2035, positioning the technology as a major growth driver over the next decade, according to government estimates.
The projection coincides with India’s increased public investment and policy support for AI under initiatives such as the IndiaAI Mission, which has been allocated over Rs 10,300 crore over five years to build computing infrastructure, support startups, develop indigenous AI models, and expand skilling programmes, the government said in a Year-Ender note on Tuesday.
The economic impact of AI will span multiple sectors, including healthcare, agriculture, manufacturing, financial services, education, governance, and climate services, where automation and data-driven decision-making are already enhancing productivity and service delivery.
India’s technology sector currently employs over six million people, and AI is expected to create new job categories while transforming existing roles. Industry estimates indicate that the country’s AI talent pool could more than double to over 12.5 lakh professionals by 2027, driven by demand for skills in data science, AI engineering, and analytics.
The government has launched large-scale reskilling initiatives, with more than 18.5 lakh candidates enrolling on the FutureSkills PRIME platform and over 3.37 lakh professionals completing courses in AI and other emerging technologies.
A key pillar of India’s AI strategy is affordable infrastructure. Under the IndiaAI Mission, the country has expanded its GPU capacity from an initial target of 10,000 units to 38,000, made available to startups and researchers at subsidised rates. Officials say this will lower entry barriers and accelerate domestic AI development.
The government is also prioritising inclusion, deploying AI-based tools in Indian languages to expand access to digital services. Platforms such as Bhashini and BharatGen, India’s government-funded multilingual AI model, aim to ensure AI benefits extend beyond urban, English-speaking users.
NITI Aayog’s roadmap further highlights AI’s potential to support India’s 490 million informal workers by improving access to skilling, healthcare, financial services, and real-time advisory tools, particularly through voice-based and mobile-first technologies.
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