AI could add $1.7 trillion to India’s economy by 2035 as govt scales up push

Government estimates peg AI-led economic gains at $1.7 trillion by 2035 as India ramps up public investment, compute capacity and skilling under the IndiaAI Mission.

• AI could add up to $1.7 trillion to India's economy by 2035
• Government allocates Rs 10,300 crore for IndiaAI Mission over five years
• AI adoption to boost jobs, skills, and productivity across multiple sectors

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India’s push to adopt artificial intelligence could add as much as $1.7 trillion to the country’s economy by 2035, positioning the technology as one of the biggest growth drivers over the next decade, according to government estimates.

The projection comes as the government steps up public investment and policy support for AI through the IndiaAI Mission, signalling a shift from pilots to scale.

Rs 10,300 crore allocated for AI push

The government has allocated more than Rs 10,300 crore over five years for the mission to build computing infrastructure, support startups, develop indigenous AI models and expand skilling programmes, according to a press release issued by Press Information Bureau on Tuesday.

Economic gains are expected from AI adoption across healthcare, agriculture, manufacturing, financial services, education, governance and climate services, where automation and data-driven decision-making are already improving productivity and service delivery.

Jobs, skills and compute capacity

India’s technology sector employs over six million people, and official data suggests AI will create new job categories even as it reshapes existing roles. Industry estimates indicate the AI talent pool could more than double to over 12.5 lakh professionals by 2027, driven by demand for data science, AI engineering and analytics skills.

To support adoption, the government has expanded AI compute capacity under the IndiaAI Mission from an initial target of 10,000 GPUs to 38,000 GPUs, to be offered to startups and researchers at subsidised rates.

Focus on inclusion and Indian languages

Officials said AI-based tools in Indian languages are central to the strategy, with platforms such as Bhashini and BharatGen aimed at expanding access beyond urban, English-speaking users.

In a separate plan, NITI Aayog said AI could support India’s 490 million informal workers by improving access to training, healthcare and financial services through voice-based, mobile-first tools, PTI reported.