AI for Viksit Bharat: Niti Aayog report pegs $500-600 billion GDP boost by 2035; financial services, manufacturing to gain most

Faster adoption of Artificial Intelligence (AI) across industries has the potential to add $500-600 billion to India’s GDP by 2035, according to a Niti Aayog report.The report, titled ‘AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth’, projects that AI could significantly raise productivity and efficiency, making it a decisive lever for India’s growth trajectory, PTI reported. It also noted that globally, AI adoption could add $17–26 trillion to the economy over the next decade.“India’s combination of a large STEM workforce, expanding R&D ecosystem, and growing digital and technology capabilities position the country to participate in this transformation, with the potential to capture 10–15 per cent of global AI value,” the report said.The report cautioned that while AI will create new roles, it will also displace many existing jobs, particularly in clerical, routine, and low-skill categories. Financial services and manufacturing are expected to see the biggest impact, with AI contributing up to 20–25 per cent of their sectoral GDP by 2035.AI-led productivity could unlock $50-55 billion in financial services and $85–100 billion in manufacturing over and above the sectors’ current growth projections.Niti Aayog CEO BVR Subrahmanyam, in his foreword, said “If India is to accelerate its growth to the 8 per cent annual rate required for the realization of Viksit Bharat, we have no option but to significantly raise productivity across the economy and unlock new growth through innovation. Artificial Intelligence can be the decisive lever.”He emphasised that with a focused, sector-specific approach, industries such as banking and manufacturing can deploy AI today to improve efficiency and competitiveness, while frontier innovations like AI-enabled drug discovery and software-defined vehicles can become future growth engines.