AI could add $1.7T to Indian economy by 2035
What's the story
The Indian government has projected that artificial intelligence (AI) could contribute as much as $1.7 trillion to the country's economy by 2035. The projection comes from a year-end note released by the government. It highlights AI's potential as a major growth driver in various sectors like healthcare, agriculture, manufacturing, financial services, education, governance, and climate services.
Strategic initiative
IndiaAI Mission: A major push for AI development
The government is backing the IndiaAI Mission with over ₹10,300 crore in public investment over five years. The initiative aims to build computing infrastructure, support start-ups, develop indigenous AI models, and expand skilling programs. This comes as part of a larger vision to make AI one of the key drivers of India's projected $8.3 trillion GDP by 2035.
Employment impact
AI to create new job categories in India
The government has said that AI will not only transform existing jobs but also create new categories of employment. Industry estimates suggest that India's AI talent pool might more than double to over 12.5 lakh professionals by 2027, driven by the growing demand for skills such as data science, AI engineering, and analytics.
Skill development
Reskilling initiatives and affordable AI infrastructure
The Centre has also launched large-scale reskilling initiatives. Over 1.85 million candidates have enrolled on the FutureSkills PRIME platform, with over 337,000 professionals doing courses in AI and other emerging technologies. A key part of India's strategy is to build affordable AI infrastructure under the IndiaAI Mission, which has raised its capacity from an initial target of 10,000 Graphics Processing Units (GPUs) to 38,000 GPUs.
Inclusion efforts
AI tools in Indian languages
The government is also focusing on inclusion by 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, are part of this effort.