AI Could Add $550 Billion to India’s Economy by 2035, Report Says

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NEW DELHI — Artificial intelligence has the potential to contribute nearly $550 billion to India’s economy by 2035, with gains spread across key sectors including agriculture, education, energy, healthcare, and manufacturing, according to a report released on Thursday.

The report, citing PwC India’s flagship “AI Edge for Viksit Bharat” study, said the estimate is grounded in detailed economic modelling as well as real-world pilot projects. The study was presented at the World Economic Forum in Davos in 2026 and helped frame India’s artificial intelligence ambitions in a more structured and globally visible manner.

According to the report, India’s AI strategy is being shaped with objectives that extend beyond productivity and growth, placing emphasis on inclusion, governance, and institutional readiness. It positions the country as a potential global benchmark for how emerging economies can deploy AI at scale while embedding it into public systems and everyday economic activity.

The study outlines a proprietary 3A2I framework — Access, Acceptance, Assimilation, Implementation, and Institutionalisation — as a system-level roadmap for scaling AI. “Access” focuses on the availability of data, digital infrastructure, and skilled talent, while “Acceptance” emphasizes public trust and confidence to enable widespread adoption.

Assimilation refers to integrating AI into regular workflows beyond pilot stages. Once these foundations are in place, the framework progresses toward large-scale implementation and long-term institutionalisation, the report said.

Pilot projects cited in the study showed double-digit efficiency gains in agriculture through AI-enabled crop advisory systems, as well as improved disease detection and notification rates in healthcare. The report said AI deployed at scale could drive operational excellence, sustainability, better governance, resilience, and stronger financial discipline.

The report also noted recent examples of AI adoption by state governments. Maharashtra Chief Minister Devendra Fadnavis has highlighted AI-enabled platforms such as MAITRI for industrial investments, where automation and data-driven processes have improved ease of doing business.

In the energy sector, AI-based smart metering systems have identified power theft with high accuracy, strengthening financial discipline. In healthcare, AI-driven tools for tuberculosis detection have significantly improved case notification rates, enhancing disease surveillance.

PwC India Chairperson Sanjeev Krishan said artificial intelligence gives India an opportunity to reimagine growth beyond traditional GDP measures, aligning technological innovation with a people-first development approach, the report added. (Source: IANS)