TLDR: NITI Aayog CEO B.V.R. Subrahmanyam announced that Artificial Intelligence is expected to contribute nearly $2 trillion to India’s economy by 2035, emphasizing its role in economic growth and job creation. The “AI for Viksit Bharat” report highlights accelerated AI adoption and generative AI in R&D as key drivers, with banking and manufacturing as immediate beneficiaries.
NITI Aayog CEO B.V.R. Subrahmanyam recently stated that Artificial Intelligence (AI) is poised to add a substantial $2 trillion to India’s economy by 2035, underscoring its transformative potential for economic growth and job creation in the coming decade. This announcement was made during the launch of the “Roadmap for AI for Viksit Bharat” and the “NITI Frontier Tech Repository” in New Delhi on September 15, 2025.
Subrahmanyam highlighted that AI is not a “job destroyer but a job enhancer,” drawing parallels to concerns raised during the computer revolution. He stressed the importance of focusing on skilling the workforce to prepare for new roles emerging from AI adoption across various sectors.
The newly released report, “AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth,” projects that widespread AI integration across industries, coupled with innovation in research and development, could bridge nearly half of the growth gap required for India to achieve an aspirational GDP of $8.3 trillion by 2035, up from a projected $6.6 trillion.
The analysis identifies two primary growth drivers:
1. Accelerating AI adoption across industries: This is expected to account for 30-35% of the growth push.
2. Transforming Research and Development with Generative AI: This is anticipated to contribute another 20-30% to economic growth.
Banking and manufacturing sectors are identified as immediate beneficiaries of this AI integration. In financial services, AI is expected to unlock an estimated $50-55 billion in value through hyper-personalized customer experiences, advanced fraud detection, and more inclusive lending practices. In manufacturing, productivity gains and intelligent product design could add $85-100 billion. The report also points to future growth engines such as AI-enabled drug discovery, next-generation auto components, and software-assisted vehicles. By 2035, India could see up to 20 million such vehicles on its roads, potentially generating $20-25 billion in export gains and import substitution.
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Debjani Ghosh, Distinguished Fellow at NITI Aayog and Chief Architect of Frontier Tech, emphasized that India’s mission for sustained 8% growth is firmly anchored in bold, pervasive AI integration and continuous innovation.
