ECONOMY
NITI Aayog report notes that AI can add $1.7 trillion to economy by 2035
- IBJ Bureau
- Sep 16, 2025
The AI-based opportunities could add around $1.7 trillion towards achieving the goal of Viksit Bharat and contribute in achieving 8 per cent GDP growth target annually, a NITI Aayog report has said.
The report titled, AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth, has noted that under the aspirational 8 per cent growth trajectory, outlined in the government’s vision for the nation known as Viksit Bharat, India’s GDP could increase to $8.3 trillion by 2035, representing an incremental $1.7 trillion compared with the current growth path. At its current growth rate of 5.7 per cent, India’s GDP is projected to reach $6.6 trillion by 2035.
The report has identified three key levers for AI-driven growth –enhancing productivity across industries (30-35 per cent of the GDP gap), transforming research and development through generative AI (20-30 per cent) and strengthening India’s technology services sector (15-20 per cent).
The report has noted that over the next decade, the adoption of AI across sectors is expected to add $17-26 trillion to the global economy. “India’s combination of a large STEM workforce, expanding R&D ecosystem and growing digital and technological capabilities positions the country to participate in this transformation, with the potential to capture 10-15 per cent of global AI value,” the report has noted.
Report By
View Reporter News