Key Points

India is rapidly embracing artificial intelligence with the potential to add $1.7 trillion to its economy by 2035. The government's IndiaAI Mission has already surpassed GPU deployment targets, making advanced computing more accessible. With 87% of enterprises actively using AI and the country ranking among global AI leaders, the technology is transforming key sectors. This AI revolution aims to bridge social divides and empower millions of informal workers with better access to essential services.

Key Points: Modi's AI Vision Could Add $1.7 Trillion to India Economy by 2035

  • IndiaAI Mission approved with ₹10,372 crore budget to build inclusive AI ecosystem
  • 38,000 GPUs already deployed exceeding initial 10,000 target significantly
  • 87% of Indian enterprises actively using AI solutions across key sectors
  • India ranks among top four globally in AI skills and GitHub contributions
  • AI expected to empower 490 million informal workers with better services
  • Industrial and automotive sectors lead AI adoption driving 60% of value
3 min read

AI could add $1.7 trillion to India's economy by 2035: Govt

India's AI revolution is accelerating with 38,000 GPUs deployed and 87% of enterprises using AI, projected to transform healthcare, agriculture and governance.

"Making AI in India and Making AI Work for India - Prime Minister Narendra Modi"

New Delhi, Oct 12

India is stepping into a new era powered by Artificial Intelligence (AI), with the government estimating that AI could add up to $1.7 trillion to the country's economy by 2035, the government said on Sunday.

The technology is transforming lives across sectors -- from healthcare and education to agriculture and governance -- making daily life simpler, smarter, and more connected.

Under Prime Minister Narendra Modi’s vision of “Making AI in India and Making AI Work for India,” the government is taking major steps to build an inclusive and powerful AI ecosystem.

A major part of this effort is the IndiaAI Mission, which was approved by the Cabinet in March 2024 with a budget of Rs 10,371.92 crore to be spent over five years.

Since its launch, the mission has made remarkable progress. Against the initial target of deploying 10,000 GPUs, India has already achieved 38,000 GPUs, expanding affordable access to advanced AI computing infrastructure.

The mission, implemented by IndiaAI under the Ministry of Electronics and Information Technology (MeitY), aims to drive innovation, support startups, strengthen data access, and ensure responsible use of AI for public good.

The country’s AI and tech ecosystem is also growing rapidly. India’s technology sector is projected to cross $280 billion in annual revenue this year, employing more than 6 million people.

The country is home to over 1,800 Global Capability Centres, including 500 focused on AI, and around 1.8 lakh startups, with nearly 89 per cent of the new ones using AI in their products or services.

According to the NASSCOM AI Adoption Index, India scores 2.45 out of 4, with 87 per cent of enterprises actively using AI solutions.

A recent BCG survey also found that about 26 per cent of Indian companies have achieved AI maturity at scale.

The leading sectors driving AI adoption include industrial and automotive, consumer goods and retail, BFSI, and healthcare, which together contribute nearly 60 per cent of AI’s total value in India.

India’s growing recognition in global rankings further reflects its progress. The Stanford AI Index places India among the top four countries in AI skills, capabilities, and policies, while the country is also the second-largest contributor to AI projects on GitHub.

A recent NITI Aayog report titled “AI for Inclusive Societal Development” (October 2025)** highlights how AI can empower India’s 490 million informal workers by improving access to healthcare, education, skilling, and financial inclusion.

It emphasises that technology can bridge deep social and economic divides and ensure that the benefits of AI reach every citizen.

- IANS

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Reader Comments

R
Rajesh Q
Hope this reaches the common man. We need AI solutions for farmers, small shopkeepers, and rural healthcare. The focus should be on Bharat, not just India's urban centers.
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Ananya R
The progress on GPU deployment is impressive - from 10,000 target to 38,000 achieved! This infrastructure will help startups like mine access computing power we couldn't afford otherwise. 🚀
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Michael C
Working in India's tech sector for 5 years now, the AI transformation is real. But we need more focus on data privacy and ethical AI frameworks. The growth should be responsible.
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Siddharth J
Helping 490 million informal workers through AI - this is what inclusive development means! Technology should uplift everyone, not just create more inequality.
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Nisha Z
While the numbers look great, I'm concerned about job displacement. We need parallel skilling initiatives to ensure people aren't left behind in this AI revolution.
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Vikram M
Second largest contributor on GitHub! That's our young talent showing the world what India can do. Proud moment for our tech community! 💪

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