Artificial intelligence has been identified as a decisive lever for India to achieve accelerated economic growth and move closer to the vision of Viksit Bharat, according to a new roadmap released by NITI Aayog and Niti Frontier Tech Hub in New Delhi. The report, titled AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth, shows how AI adoption across industries and innovation in research and development can bridge nearly half of the growth gap required to raise India’s GDP from a projected 6.6 trillion dollars to 8.3 trillion dollars by 2035.
NITI Aayog CEO B V R Subrahmanyam said that artificial intelligence can be the decisive lever for achieving an 8% or higher growth rate. “With a focused and sector-specific approach, industries such as banking and manufacturing can deploy AI today to improve efficiency, service quality, and competitiveness, creating momentum for deeper transformation,” he noted.
The analysis highlights two major opportunities. First, faster AI adoption across industries, which could account for 30 to 35% of the growth step-up. Second, transforming research and development with generative AI, which could contribute another 20 to 30%. Banking and manufacturing are highlighted as immediate beneficiaries. In financial services, AI could enable hyper-personalised customer experiences, stronger fraud detection, and more inclusive lending, adding an estimated 50 to 55 billion dollars in value by 2035. In manufacturing, AI-driven productivity, predictive maintenance, and intelligent product design could deliver an additional 85 to 100 billion dollars.
The report also underlines the importance of frontier innovation. AI-powered drug discovery could cut costs by up to 30% and reduce timelines by as much as 80%, helping India move beyond generics towards innovation-led pharmaceutical leadership. In the automotive sector, the roadmap envisions 18 to 20 million software-assisted vehicles on Indian roads by 2035, supported by smart corridors and digital testing parks. This could result in 20 to 25 billion dollars in export gains and import substitution.
“India’s mission to sustained 8% plus growth is anchored in bold, pervasive AI integration and tireless innovation, and must become a core national priority,” said Debj Ghosh, Distinguished Fellow at NITI Aayog and Chief Architect of the Frontier Tech.
The report concludes that with strong infrastructure, responsible governance, and collaboration between industry and academia, India has the potential to pioneer a new model of growth powered by AI.
Also read: Viksit Workforce for a Viksit Bharat
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