AI to Inject $550 Billion Into India's Key Sectors by 2035, Says Report

A PwC India report launched at Davos states artificial intelligence has the potential to add $550 billion to India's agriculture, education, energy, healthcare, and manufacturing sectors by 2035. Real-world pilots, like AI-driven TB detection and smart metering, have already shown dramatic efficiency gains and cost savings. The report introduces an "AI Edge" framework focusing on outcomes like sustainability, good governance, and resilience beyond mere efficiency. Leaders emphasize leveraging India's digital infrastructure to democratize AI's impact for equitable, people-first development.

Key Points: AI to Add $550B to Indian Economy by 2035: PwC Report

  • AI can boost crop productivity
  • AI can improve school governance and disease detection
  • Smart metering can cut power theft
  • AI can enhance manufacturing quality
  • India positioned as a global benchmark for equitable AI
3 min read

AI can unleash $550 billion for 5 pivotal sectors in India by 2035: Report

A PwC India report reveals AI could contribute $550 billion to agriculture, education, energy, healthcare, and manufacturing in India by 2035.

"Al is more than a technological leap; it's a nation building force. - Sanjeev Krishan, Chairperson, PwC in India"

Davos, Jan 23

Artificial intelligence has the potential to contribute $550 billion to five priority sectors -- agriculture, education, energy, healthcare and manufacturing -- in India by 2035 at a nominal level, positioning the country as a potential global benchmark for how emerging economies can deploy AI in a manner that is both transformative and equitable, said a PwC India report released at the World Economic Forum's annual meeting here on Friday.

The report showed that AI can be a driver of sectoral growth, from boosting crop productivity and reducing agri-waste to improving school governance, cutting power theft, accelerating disease detection, and enhancing manufacturing quality.

Real world pilots already demonstrate this potential: AI enabled crop advisories delivered double digit efficiency gains, smart metering flagged high accuracy theft cases, and AI driven TB detection improved notification rates dramatically. Scaling such applications, even to modest levels, could save hundreds of millions annually, said the report.

"Al is more than a technological leap; it's a nation building force. It gives us the power to reimagine growth not just in GDP terms, but through a people first lens. By investing in infrastructure, talent, and governance, we can ensure that innovation and equitable development move hand in hand. This is how we shape a Viksit Bharat that leads the world," explained Sanjeev Krishan, Chairperson, PwC in India

Maharashtra Chief Minister Devendra Fadnavis, while unveiling the report here, said, "AI is revolutionising all spheres of life, and we are embedding it in governance to democratise its impact".

"We have done well in creating a strong digital infrastructure, and we are now in a position to leverage data to drive deeper digitisation. We have developed an AI‑based application for farmers, available in Marathi, which is being actively used to understand crop cycles and the appropriate understanding around pesticide usage. At the same time, we are building an innovative city that will help push the state's larger AI agenda. EODB is another key focus area. In Maharashtra, we have recently cancelled 17 laws as part of our decriminalisation drive," he noted.

In the report, PwC also introduced the AI Edge framework, defining the five tangible outcomes India should expect from AI deployed at scale: operational excellence, sustainability, good governance, resilience, and financial discipline.

These outcomes shift the global AI conversation from efficiency alone to a broader focus on transparency, environmental stewardship, system reliability and inclusive value creation across public and private ecosystems.

Speaking on India's evolving business and policy environment, Nikhil Kamath, entrepreneur and investor, noted that "the business environment is getting better. We have seen strong policy stability in recent years, and India as a country is trying to do better."

- IANS

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Reader Comments

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Rohit P
$550 billion sounds impressive, but the real challenge is equitable distribution. We need to ensure this tech revolution doesn't just benefit big cities and corporates. The focus on 'people first' and good governance in the report is crucial.
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Aditya G
AI-driven TB detection improving notification rates is a massive win for public health. Early detection can save so many lives and reduce the burden on our healthcare system. This is the kind of application that truly matters.
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Sarah B
As someone working in the energy sector, the mention of cutting power theft through smart metering is key. Losses due to theft and inefficiency are huge. If AI can help here, it will make power more reliable and affordable for everyone.
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Karthik V
While the vision is great, I have a respectful criticism. Reports like these often overpromise. The success depends entirely on execution and digital literacy at the grassroots. We must invest heavily in training and local language support, not just in building apps.
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Meera T
"Viksit Bharat" through AI is an inspiring goal. If we can become a global benchmark for how emerging economies use tech for equitable growth, it will be our biggest soft power achievement. The focus on sustainability and transparency in the AI Edge framework is smart.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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