AI
India’s AI power play could add $1.7 trillion to economy by 2035, says govt
Artificial Intelligence is expected to contribute USD 1.7 trillion to India’s economy by 2035, the government said in a year-end note, underlining the country’s rapid rise as a global AI powerhouse.
The note said India’s technology sector is on track to cross USD 280 billion in annual revenue this year, driven by accelerated adoption of artificial intelligence across industries.
According to the government, flagship initiatives such as the IndiaAI Mission and the establishment of Centres of Excellence for AI are central to this transformation.
“These initiatives are expanding access to computing power, supporting cutting-edge research, and enabling startups and institutions to develop solutions that directly benefit citizens. India’s approach is focused on making AI open, affordable, and accessible, ensuring innovation uplifts society as a whole,” the note said.
India’s technology and AI ecosystem currently employs over six million people, reflecting strong job creation alongside rapid technological growth.
The note also highlighted India’s vibrant startup landscape, with around 1.8 lakh startups operating nationwide. Nearly 89% of new startups launched last year incorporated AI into their products or services.
India has climbed to the third position globally in Artificial Intelligence competitiveness, according to Stanford University’s 2025 Global AI Vibrancy Tool, which tracks AI growth and innovation between 2017 and 2024. The ranking underscores India’s accelerating momentum in the global AI race.
Guided by the vision of “Making AI in India and Making AI Work for India,” the Cabinet approved the IndiaAI Mission in March 2024, with a budget outlay of ₹10,371.92 crore over five years.
The mission represents a decisive step toward positioning India as a global leader in artificial intelligence. Since its launch, India has significantly expanded its AI computing infrastructure—scaling up from an initial target of 10,000 GPUs to 38,000 GPUs, providing affordable access to world-class AI resources.
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