Daijiworld Media Network - New Delhi
New Delhi, Oct 12: India is fast-tracking its transformation into an Artificial Intelligence-powered economy, with the government projecting that AI could contribute up to $1.7 trillion to the nation's GDP by 2035. With a sharp focus on building a robust, inclusive AI ecosystem, the government is advancing under the banner of Prime Minister Narendra Modi’s vision: “Making AI in India and Making AI Work for India.”
A cornerstone of this transformation is the IndiaAI Mission, launched in March 2024 with a five-year budget of ?10,371.92 crore. The mission has already surpassed its original target of deploying 10,000 GPUs by achieving 38,000, dramatically improving access to AI computing infrastructure for researchers, startups, and innovators.
Spearheaded by the Ministry of Electronics and Information Technology (MeitY), the IndiaAI initiative aims to foster innovation, support emerging AI startups, strengthen data availability, and ensure the responsible use of AI for societal benefit.
India’s broader technology ecosystem is thriving alongside these AI advances. The country’s tech sector is projected to generate $280 billion in annual revenue in 2025, supporting a workforce of over six million. The country now hosts more than 1,800 Global Capability Centres—500 of which are AI-focused—and nearly 1.8 lakh startups, with close to 89% integrating AI into their solutions.
Enterprise adoption of AI is also on the rise. According to NASSCOM’s AI Adoption Index, India scores 2.45 out of 4, with 87% of enterprises already deploying AI technologies. A Boston Consulting Group (BCG) survey further notes that 26% of Indian companies have achieved AI maturity at scale.
Key sectors leading this AI wave include automotive and industrial manufacturing, consumer goods, BFSI (banking, financial services, and insurance), and healthcare—accounting for nearly 60% of AI’s total economic value in India.
India’s rising prominence is being noticed globally. The Stanford AI Index ranks the country among the top four worldwide in AI skills and policy frameworks, while India is the second-highest contributor to AI projects on GitHub.
A new report from NITI Aayog, "AI for Inclusive Societal Development", underscores the transformative power of AI for India’s 490 million informal workers. It highlights how AI can bridge gaps in access to healthcare, education, financial services, and skilling, helping reduce inequality and making growth more inclusive.
As India doubles down on its AI journey, the emphasis remains on using the technology not just for economic growth but also for empowering citizens and ensuring that innovation reaches every corner of society.