Artificial Intelligence (AI) will play a transformative role in shaping India’s economic growth and job creation in the coming decade, NITI Aayog CEO B.V.R. Subrahmanyam said on Monday. He was speaking at the launch of the Roadmap for AI for Viksit Bharat and the NITI Frontier Tech Repository in New Delhi.
The NITI Aayog chief underlined that AI is expected to add nearly USD 2 trillion to India’s economy by 2035. He stressed that contrary to fears of job losses, the technology will generate new employment opportunities, provided the workforce is equipped with appropriate skills.
“AI is not a job destroyer but a job enhancer,” Subrahmanyam remarked, recalling similar concerns expressed at the time of the computer revolution. He said India must focus on skilling to prepare workers for the new roles created by AI adoption.
The newly released report titled “AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth” projects that AI adoption across industries, coupled with innovation in research and development, could help India bridge nearly half of the growth gap required to reach an aspirational GDP of USD 8.3 trillion by 2035 from a projected USD 6.6 trillion.
The analysis identifies two major growth drivers: accelerating AI adoption across industries, accounting for 30-35 per cent of the growth push, and transforming R&D with generative AI, contributing another 20-30 per cent.
Banking and manufacturing are expected to be immediate beneficiaries. In financial services, AI could enable hyper-personalised customer experiences, advanced fraud detection, and more inclusive lending, unlocking an estimated USD 50-55 billion in value. In manufacturing, productivity gains and intelligent product design could add USD 85-100 billion.
The report also points to future growth engines, including AI-enabled drug discovery, next-generation auto components, and software-assisted vehicles. By 2035, India could see up to 20 million such vehicles on its roads, delivering USD 20-25 billion in export gains and import substitution.
Debjani Ghosh, Distinguished Fellow at NITI Aayog and Chief Architect of Frontier Tech, said India’s mission for sustained 8 per cent growth is anchored in bold, pervasive AI integration and continuous innovation.