The Indian government has projected that Artificial Intelligence (AI) could become a monumental driver of economic growth, potentially adding a staggering $1.7 trillion to the nation's economy by the year 2035. This forecast positions AI as one of the most powerful engines for India's development over the coming decade.
Massive Investment and Strategic Initiatives
This ambitious projection is backed by substantial public investment and robust policy support. The cornerstone of this effort is the IndiaAI Mission, which has been allocated a massive Rs 10,300 crore over the next five years. Announced in a recent Year-Ender note, this funding is earmarked for building critical computing infrastructure, supporting AI startups, developing indigenous AI models, and significantly expanding skilling programs across the country.
Sector-Wide Transformation and Job Creation
The anticipated economic windfall is expected to be driven by widespread AI adoption across vital sectors of the economy. Key areas identified for transformation include:
- Healthcare
- Agriculture
- Manufacturing
- Financial Services
- Education and Governance
- Climate Services
In these fields, automation and data-driven decision-making are already enhancing productivity and improving service delivery. While AI will undoubtedly transform existing roles, the government emphasizes that it will also create entirely new categories of jobs. Currently, India's technology sector employs over six million people, and this base is set to expand.
Reflecting the soaring demand, industry estimates suggest the country's AI talent pool could more than double, exceeding 1.25 million (12.5 lakh) professionals by 2027. Skills in data science, AI engineering, and analytics are becoming increasingly valuable. To meet this demand, large-scale reskilling initiatives are underway. Official figures reveal that over 1.85 million (18.5 lakh) candidates have enrolled on the FutureSkills PRIME platform, with more than 337,000 (3.37 lakh) having already completed courses in AI and other emerging technologies.
Building Infrastructure and Ensuring Inclusion
A critical component of India's AI strategy is developing affordable and accessible infrastructure. Under the IndiaAI Mission, the plan for computing capacity has been aggressively scaled up. The initial target of 10,000 Graphics Processing Units (GPUs) has been expanded to 38,000 GPUs. These resources will be made available to startups and researchers at subsidized rates, a move officials say will lower entry barriers and accelerate homegrown AI innovation.
The government is also intensely focused on ensuring the benefits of AI reach every corner of society. A major thrust is on developing AI tools in Indian languages to bridge the digital divide. Platforms like Bhashini and the government-funded multilingual AI model, BharatGen, are central to this effort, aiming to extend AI's advantages beyond urban, English-speaking users.
In a separate but complementary vision, NITI Aayog has outlined how AI can empower India's vast informal workforce, which numbers around 490 million people. The think tank highlights AI's potential to improve access to skilling, healthcare, financial services, and real-time advisory tools for these workers, particularly through voice-based and mobile-first technologies.
With strategic funding, a focus on infrastructure and talent, and a commitment to inclusive growth, India is laying a comprehensive foundation to harness the transformative power of Artificial Intelligence and secure its position as a global leader in the AI-driven future.
