India is stepping into a new phase of economic transformation powered by Artificial Intelligence (AI), with the government estimating that the technology could add nearly $1.7 trillion to the national economy by 2035, according to PIB release. Officials said AI is reshaping sectors such as healthcare, agriculture, education and governance, in line with Prime Minister Narendra Modi’s vision of “Making AI in India and Making AI Work for India”. The government believes that AI will not only drive innovation but also make public services smarter, faster and more inclusive, improving the lives of millions.
IndiaAI Mission powering digital infrastructure
A major pillar of this strategy is the IndiaAI Mission, approved by the Union Cabinet in March 2024 with a budget of Rs 10,371.92 crore over five years. Implemented by IndiaAI under the Ministry of Electronics and Information Technology (MeitY), the mission aims to expand access to advanced computing infrastructure, foster AI startups and promote the responsible use of technology. Officials said India has already deployed 38,000 Graphics Processing Units (GPUs) against an initial target of 10,000 – a milestone that marks a significant leap towards affordable AI computing for researchers, developers and enterprises.
Expanding AI ecosystem and startup network
India’s tech industry continues to see robust growth, with the sector expected to cross $280 billion in annual revenue this year and employ more than six million people. The country now hosts over 1,800 Global Capability Centres, about 500 of which are focused on AI. India is home to more than 1.8 lakh startups and nearly 89 per cent of new ones are using AI in their products or services. The government says this growing ecosystem is helping create jobs, attract investment and strengthen India’s position as a global innovation hub.
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Industry adoption driving transformation
AI adoption in India’s corporate sector has accelerated sharply. The NASSCOM AI Adoption Index places India at 2.45 out of 4, with 87 per cent of enterprises actively using AI tools and platforms. A Boston Consulting Group (BCG) survey found that around 26 per cent of Indian companies have achieved AI maturity at scale. Key sectors leading this transformation include industrial and automotive, consumer goods and retail, banking and financial services, and healthcare – together contributing about 60 per cent of AI’s total economic value in the country.
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Global recognition and leadership
India’s growing global presence in AI has been widely recognised. The Stanford AI Index lists India among the top four nations for AI skills, policy initiatives and technical capability. The country is also the world’s second-largest contributor to AI projects on GitHub, reflecting its expanding role in global research and open-source innovation.
