NITI Aayog has released a new report projecting that Artificial Intelligence (AI) could add between $500 and $600 billion to India’s GDP by 2035. AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth positions AI as the key lever for India to achieve 8% annual growth.
The report incorporates analysis and insights from McKinsey & Company. This raises questions about whether the framing leans toward industry priorities rather than presenting a broader national perspective.
Furthermore, the report is not a Cabinet-approved policy and does not carry the weight of an official national strategy. It adds to a gap that stretches back to NITI’s 2018 AI strategy, which has seen little follow-up apart from the launch of the IndiaAI Mission in 2024.
How NITI Aayog Sees AI Driving Growth
Building on its growth projections, the report identifies three levers for AI-led value creation: accelerating adoption across industries, transforming research and development through generative AI, and expanding technology services exports. It focuses mainly on the first two, projecting that adoption alone could bridge up to 30–35% of India’s growth gap.
To begin with manufacturing, it proposes smart factory corridors, a national manufacturing data grid, AI-ready industrial parks, and shared 3D printing facilities. Meanwhile, financial services would rely on regulatory and innovation sandboxes, shared dashboards, fraud detection systems, and alternative data for credit decisions. In pharmaceuticals, the report expects progress through AI-enabled drug discovery, large-scale genome sequencing, and tiered access to research datasets.
Finally, in the automotive sector, it projects “software-assisted vehicles” reaching Level 3 autonomy by 2035, supported by testing parks, smart corridors, and anonymised vehicle telemetry.
The report also presents a vision of India as the “data capital of the world.” It highlights anonymised data frameworks, certified marketplaces with privacy tags, and sectoral data platforms as key measures. AI Kosh already hosts more than 350 datasets, and the report describes it as a foundation that can be scaled further.
On skills, the report proposes an AI Open University, national certification programmes such as “AI for Credit, Risk and Fraud,” and fellowships to embed AI experts in banks and regulators.
Ruchi Gupta, Executive Director of the Future of India Foundation, said the report departs from NITI’s earlier strategy. “The earlier report had a stronger public-interest framing, what AI can do for health, agriculture, education. This one is very industry-focused. This comes through from the Expert Council, which is dominated by industry. The lack of other perspectives makes this a bit lopsided,” she said.
Jobs and Productivity
Alongside growth projections, the report frames AI adoption as a way to unlock major productivity gains. However, concerns about its impact on…
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