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Artificial Intelligence (AI) is expected to contribute approximately USD 607 billion to India's economy by 2035, with a significant impact across key sectors such as agriculture, healthcare, energy, education, and manufacturing, according to a report by PwC.
The report estimates that AI could add up to 15 per cent to global GDP by 2035, driven by sustained productivity gains as AI moves from research environments into everyday products and services across manufacturing, healthcare, finance and agriculture. The report noted that India is strengthening these advantages through focused investments and policy interventions. It stated, "AI has the potential to contribute between USD 550.2 billion to USD 607.3 billion to these five sectors by 2035 at a nominal level". In agriculture, the report highlighted that the sector continues to be the backbone of the Indian economy. Calculations show that the gross value addition (GVA) of agriculture will need to increase from an estimated USD 637 billion in FY25 to USD 2,359 billion in FY47 to meet the aspirations of Viksit Bharat. However, productivity challenges persist, as 86 per cent of farmers are small and marginal, holding less than one hectare of land, and yield gaps remain at 40-50 per cent compared to global averages. The report stressed that rapid adoption of digital technologies, including AI, is critical for boosting productivity and ensuring sustainability. On education, the report referred to the Economic Survey 2024-25, which stated that only 8.25 per cent of graduates are employed in jobs aligned with their educational qualifications. Increasing gross enrolment ratios, particularly among disadvantaged groups, and investing in multidisciplinary and skill-oriented programmes can help transform India's demographic dividend into a skilled workforce. The report added that such expansion will also significantly increase budgetary allocations to education over the next two decades, making the use of technologies such as AI essential to ensure effective and meaningful spending. The energy sector was also identified as a strategic enabler for growth across manufacturing and agriculture. A highly efficient and productive energy ecosystem is crucial for achieving Viksit Bharat goals. The report noted that the transition towards a greener energy mix will support climate objectives and improve rural livelihoods. Ensuring cost- and resource-efficient universal electricity coverage, along with a consistent supply of high-quality power, will be vital for inclusive growth, with AI playing a role in reducing power theft. Healthcare was highlighted as another vital sector, with the report noting that scaled tertiary and super-speciality care through institutions and medical colleges attached to district hospitals can generate high-skill jobs, retain talent and attract medical value tourism, while expanding access to advanced treatment beyond metro cities. In manufacturing, the report said accelerated growth across sectors such as semiconductors, solar panels, high-tech telecommunications and electronics, supported by digital technologies and AI, can strengthen Aatmanirbhar Bharat and deepen India's integration into global value chains. Manufacturing also holds the potential to create large-scale employment, bridge urban-rural divides and reduce inequality through women-led development and skilling in STEM and vocational trades. (ANI)
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