Shamna T C and Anjali P K
anjali.pk@christuniversity.in
Artificial Intelligence (AI) has rapidly evolved from a frontier technology to a defining force shaping the trajectory of nations, industries, and economies. For India, the world’s largest democracy with an unmatched digital population and a vibrant startup ecosystem, AI represents more than technological advancement, it signifies an extraordinary economic opportunity. As the nation aspires toward the vision of Viksit Bharat 2047, achieving sustained 8 percent annual growth is essential, and AI has emerged as the most potent catalyst for this transformation.
Global estimates suggest that AI will add between $17 and $26 trillion to the world economy over the next decade. India, with its robust STEM talent pool, expanding R&D ecosystem, and pioneering digital public infrastructure, is positioned to capture a significant share of this value. Recent assessments indicate that AI could contribute an additional $500–600 billion to India’s GDP by 2035, purely through productivity gains and efficiency improvements. This marks a decisive shift in India’s growth narrative, from incremental progress to exponential, innovation-led acceleration.
One of India’s greatest strengths is its vast and diverse data ecosystem. With platforms like Aadhaar, UPI, Account Aggregator, DigiLocker, and the upcoming IndiaAI Mission, the country is building what many experts describe as the world’s richest and most inclusive data infrastructure. This gives Indian innovators an opportunity to build AI models that reflect real-world diversity, linguistic, cultural, socio-economic, and geographic, something few other nations can match.
This data advantage is transforming the financial sector. Indian banks and fintech companies are rapidly adopting AI-driven solutions that improve credit scoring, detect fraud in real time, automate compliance, and personalize customer engagement. As banks evolve into “bionic institutions,” blending human judgment with machine intelligence, the benefits will extend far beyond efficiency. AI will deepen financial inclusion, expand credit access for small businesses, and help bring millions more into the formal financial fold. By 2035, AI-led financial innovation is expected to generate billions in value while transforming India’s banking architecture.
Manufacturing, a crucial pillar for any aspiring global power, is undergoing a powerful AI-enabled shift as well. Predictive maintenance, digital twins, AI-based quality control, robotics, and real-time supply chain optimization are not just buzzwords, they represent a transformation in how Indian factories operate. AI can increase manufacturing productivity by up to 20 percent, making Indian goods globally competitive. Visionary approaches like establishing AI-ready industrial parks with clean energy access, high-performance computing, robotics testing zones, and 5G-enabled industrial corridors can redefine India’s industrial capabilities. If executed effectively, these initiatives will position India as a global hub for smart, AI-integrated manufacturing.
In pharmaceuticals, AI is dramatically reducing the time and cost associated with drug development. Traditionally, creating a new drug takes more than a decade and requires over a billion dollars in investment. AI can compress these timelines by up to 70–80 percent, enabling faster discovery, design, and testing of molecules. India, already a global leader in generics, now has the chance to make a significant leap into innovative drug discovery. By investing in genomics, computational biology, and biotech R&D, India can shift from being the “pharmacy of the developing world” to becoming a powerhouse in medical innovation, exporting both generics and novel molecules to global markets.
The automotive sector, too, is witnessing a profound transformation. India is on track to become one of the largest markets for software-enabled vehicles, with AI powering everything from driver-assistance systems and safety features to predictive maintenance and connected mobility solutions. By 2035, more than 18 million software-assisted vehicles could be on Indian roads. AI-led design tools and digital testing environments are expected to cut R&D costs and timelines dramatically, helping India enhance its share of the $500 billion global auto components export market. If supported with the right infrastructure, such as 5G-enabled corridors, testing parks, and semiconductor development, the Indian automotive industry can emerge as a global champion.
However, the path ahead is not without challenges. Data privacy concerns, digital disparities, lack of advanced compute infrastructure, regulatory gaps, and a shortage of AI-skilled professionals could slow progress if not addressed promptly. Ethical AI deployment, transparent governance structures, and robust cybersecurity frameworks will be essential to ensure that public trust remains intact. Equally important is the need to reskill and upskill India’s workforce. AI must empower workers, not displace them. A national skilling mission aligned with AI readiness, covering students, professionals, and industry leaders, can ensure that India’s demographic dividend becomes a technological dividend.
India’s approach to AI must remain grounded in inclusion. The true power of AI lies not merely in advanced laboratories or metropolitan technology hubs, but in its ability to uplift small farmers, micro-enterprises, rural communities, and informal workers. By integrating AI with digital public infrastructure, India can democratize access to high-quality services, in finance, healthcare, education, agriculture, and transport, ensuring that technology benefits every citizen, not just a privileged few.
As nations race to lead the AI era, India has a unique chance to define a model of growth that is fast, inclusive, ethical, and globally competitive. The steps taken over the next five years will determine whether India becomes a global AI leader or lags behind in a world moving at unprecedented speed.
To ensure balanced and widespread AI adoption, India should develop a National AI Readiness Index that evaluates every state on parameters such as infrastructure, skilling, innovation, governance, and industry adoption. Updated annually, this index would promote healthy competition among states, guide targeted investments, and ensure that AI-led growth reaches every region of the country. With such a framework, India can accelerate its journey toward becoming a truly AI-powered Viksit Bharat.
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