Artificial Intelligence (AI) has the potential to add as much as USD 1.7 trillion to India’s economy by 2035, according to government estimates. This projection highlights AI as a significant growth engine for the country over the next decade, coinciding with increased public investment and policy support through initiatives like the IndiaAI Mission.
The IndiaAI Mission has been allocated more than Rs 10,300 crore over five years to enhance computing infrastructure, support startups, develop indigenous AI models, and expand skilling programs. This investment aims to foster a robust ecosystem for AI, which is expected to transform various sectors ranging from healthcare and agriculture to manufacturing and governance. The government outlined these initiatives in a Year-Ender note released on Tuesday.
AI adoption is anticipated to improve productivity and service delivery across multiple sectors. Current data suggests that India’s technology sector employs over six million people, and the emergence of AI is expected to create new job categories while also transforming existing roles. As the demand for AI-related skills grows, industry estimates indicate that the country’s AI talent pool could more than double to over 12.5 lakh professionals by 2027.
The government has initiated large-scale reskilling efforts to meet this demand. Official figures indicate that more than 18.5 lakh candidates have enrolled in the FutureSkills PRIME platform, with over 3.37 lakh professionals having completed courses in AI and other emerging technologies. This focus on reskilling aims to equip the workforce with the necessary skills to thrive in an AI-driven economy.
A fundamental aspect of India’s strategy is the development of affordable AI infrastructure. Under the IndiaAI Mission, the government has expanded its GPU capacity from an initial goal of 10,000 Graphics Processing Units to 38,000 GPUs, which will be available to startups and researchers at subsidized rates. Officials believe this move will lower entry barriers for innovation and accelerate domestic AI development.
Inclusivity is also a priority, with AI-based tools being developed in various Indian languages to enhance access to digital services. Platforms such as Bhashini and BharatGen, a government-funded multilingual AI model, aim to ensure that the advantages of AI reach beyond urban, English-speaking populations. This strategy is crucial for making digital services accessible to a broader demographic.
In a related initiative, the NITI Aayog has underscored AI’s potential to support India’s 490 million informal workers. By improving access to skilling, healthcare, financial services, and real-time advisory tools—especially through voice-based and mobile-first technologies—AI could significantly enhance the livelihoods of these workers.
As India continues to invest in AI, the government’s commitment to building a skilled workforce and inclusive digital infrastructure positions the nation as a potential leader in the global AI landscape. The unfolding developments will not only stimulate economic growth but also offer transformative opportunities for millions of citizens, paving the way for a more technology-driven future.
See also
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