Artificial Intelligence (AI) is set to become a major growth engine for India, with the potential to contribute nearly $607 billion to the economy by 2035, according to a new report by PwC. The study highlights how AI-driven productivity gains across key sectors could play a crucial role in shaping India’s long-term development journey.
PwC estimates that AI could add up to 15 per cent to global GDP by 2035, as the technology increasingly moves from research labs into real-world applications across manufacturing, healthcare, finance, agriculture and education. For India, the report suggests that AI could contribute between $550 billion and $607 billion to five priority sectors—agriculture, healthcare, energy, education and manufacturing—at a nominal level over the next decade.
Agriculture: Boosting productivity and sustainability
The report describes agriculture as the backbone of the Indian economy, but notes persistent productivity challenges. While agriculture’s gross value addition (GVA) is projected to grow from about $637 billion in FY25 to $2.36 trillion by FY47 to meet the goals of Viksit Bharat, structural issues remain. Around 86 per cent of Indian farmers are small and marginal, owning less than one hectare of land, and crop yields lag global averages by 40–50 per cent.
PwC underlines that faster adoption of digital tools and AI-based solutions—such as precision farming, crop advisory platforms and supply chain analytics—will be essential to improve productivity, raise farmer incomes and ensure long-term sustainability.
Education: Aligning skills with jobs
On education, the report draws attention to a growing skills mismatch. Citing the Economic Survey 2024–25, it notes that only 8.25 per cent of graduates are currently employed in roles aligned with their qualifications. Expanding enrolment, especially among disadvantaged groups, and focusing on multidisciplinary, skill-oriented programmes will be key to turning India’s demographic advantage into a skilled workforce.
The report also points out that education spending is likely to rise sharply over the next two decades, making the use of AI and digital technologies vital to ensure that public funds are used effectively and learning outcomes improve at scale.
Energy: Powering inclusive growth
A strong and efficient energy ecosystem is seen as critical for India’s growth ambitions. The report highlights the importance of a reliable and greener energy mix to support manufacturing, agriculture and rural livelihoods. AI can play a role in improving grid efficiency, forecasting demand, reducing power theft and ensuring cost-effective, universal electricity access—key pillars for inclusive development.
Healthcare: Expanding access beyond metros
In healthcare, PwC sees AI as an enabler for expanding quality care beyond major cities. Scaling up tertiary and super-speciality services through medical colleges linked to district hospitals can create high-skilled jobs, retain talent and attract medical tourism. AI-driven diagnostics, remote care and hospital management systems can help bridge gaps in access while improving efficiency and outcomes.
Manufacturing: Driving Aatmanirbhar Bharat
The report notes that AI-led growth in manufacturing—especially in areas such as semiconductors, solar panels, electronics, and advanced telecommunications—can strengthen Aatmanirbhar Bharat and deepen India’s role in global value chains. Beyond output, manufacturing powered by digital technologies also holds the potential to generate large-scale employment, reduce regional inequalities and promote women-led development through STEM and vocational skilling.
Also Read | The FOMO Factor: How Artificial Intelligence is Keeping Business Leaders on Edge
A technology-led growth path
Overall, PwC’s findings suggest that AI is not just a technological upgrade but a strategic lever for India’s economic transformation. With the right mix of policy support, investment and skill development, AI could significantly accelerate productivity, inclusivity and sustainability—helping India move closer to its long-term development goals by 2035.
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