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Context

NITI Aayog launched the ‘AI for Viksit Bharat Roadmap’ to integrate AI into India's growth strategy, targeting 8%+ GDP growth by 2035 and positioning India as a global AI leader under the Viksit Bharat@2047 vision.

What is the ‘AI for Viksit Bharat Roadmap’?

The ‘AI for Viksit Bharat Roadmap’ is a comprehensive national blueprint to harness Artificial Intelligence (AI) as a key accelerator for India's economic transformation.

The report quantifies the opportunity with key economic projections:

• On its current growth path of 5.7% annually, India's GDP is projected to reach $6.6 trillion by 2035.
• The aspirational GDP target under the Viksit Bharat vision requires an 8% annual growth rate, aiming for $8.3 trillion by 2035.
• This creates an incremental opportunity of approximately $1.7 trillion, which AI is uniquely positioned to help secure.

The Three Core Levers of AI-Driven Growth

1. Accelerating AI adoption across industries to improve productivity and efficiency, potentially bridging 30–35% of the gap:

Higher output, lower costs of goods and services, and improved access for underserved markets. These effects are expected to materialize across both domestic consumption and export markets

2. Transforming R&D, through generative AI, could help India leapfrog into innovation driven global opportunities, bridging a minimum 20–30% of the gap:

Can generate new AI-led market opportunities within traditional industries, support commercialization, reshape legacy value chains, and strengthen long-term competitiveness

3. Innovation in technology services, strengthening India’s reputation as a technology services leader, contributing another 15-20% to the step up:

Could drive the development of higher-value solutions and new business models, enhancing India’s competitiveness in the global market

The IndiaAI Mission: A Foundational Government Initiative

With an estimated budget of over ₹10,000 Cr for a five-year period, the mission is structured around seven core pillars to create a robust national AI ecosystem.

Sector-Specific Strategies for AI Integration

Banking and Financial Services

Potential Economic Impact

AI-led improvements are projected to unlock $50B-$55B in additional value for the financial services sector by 2035.

Key Applications:

• Back Office: AI can power automated compliance checks, advanced fraud detection, and more accurate risk management.
• Middle Office: AI-enabled systems can reshape credit decisioning, collections strategies, and portfolio management by leveraging alternative data sources.
• Front Office: Virtual relationship managers can deliver hyper-personalized customer experiences, offering tailored financial advice and proactive service.

The report frames AI as a tool for deepening financial inclusion and enhancing systemic stability through data-driven risk management.

Manufacturing

Potential Economic Impact

AI-led productivity enhancements in manufacturing could contribute $85B–$100B in value by 2035. 

AI is expected to have a high impact on the National Manufacturing Mission: Availability of Technology, a Future-ready Workforce, and a Vibrant MSME Sector.

Key Applications:

• Producing the same goods at a lower price: Through automation of repetitive tasks, predictive maintenance to reduce downtime, and real-time analytics for scheduling and supply chain optimization.
• Producing better goods at the same price: Shifting India's manufacturing sector up the value chain from a low-cost producer to a high-quality, innovation-led competitor in global markets. AI enables this through intelligent product design, real-time quality control, and by empowering MSMEs with advanced tools.

This strategy aims to enhance the competitiveness of the 'Make in India' initiative by embedding intelligence across the entire value chain.

Pharmaceuticals

Potential Economic Impact

Opportunity for India to leverage its diverse gene pool—a unique national advantage—to transition from a generics powerhouse (currently 80% of the market) into a global leader in innovative drug discovery.

Key Applications:

• AI can compress drug-discovery timelines by 60–80%.
• It can reduce R&D costs by an estimated 20–30% through drug repurposing and AI-driven research.
• By leveraging India's diverse gene pool, AI can improve clinical trial success rates by 5–15% by identifying optimal patient subgroups.

Automotive

Potential Economic Impact

AI can enable India to become a global leader in Software-Assisted Vehicles (SAVs) and AI-powered auto component design. 

By using technologies like Radio-frequency identification (RFID) corridors and 5G-enabled vehicle-to-infrastructure communication, India can bypass conventional sensor-heavy systems.

Key Projections:

• SAV Adoption: An estimated 18-20 million software-ready vehicles are projected to be on Indian roads by 2035.
• Value Capture: This adoption could unlock $6-8B in cumulative domestic value through AI-enabled SAV subscriptions by 2035.
• Auto Components: AI-powered design can help capture $25-30B in cumulative value by 2035 through a combination of export enhancement and import substitution.

Strategic Enablers and Preparing the Workforce

The report identifies strategic enablers that form the foundational ecosystem for India's AI ambitions:

• Strengthening AI infrastructure, including compute power, cloud platforms, and foundational datasets.
• Establishing robust AI governance frameworks that include ethics guidelines and risk controls for responsible deployment.
• Leading industry adoption by embedding AI into core processes and driving AI-powered decision-making.
• Anchoring research and workforce transformation through collaboration with academia to support skilling and innovation.

Recognizing that AI will transform the labor market, the report provides clear recommendations for future-proofing jobs and managing this transition:

• Continuous Reskilling: Develop job transformation maps for 25-30 priority sectors to identify shifting roles and create clear reskilling pathways.
• Accessible Learning: Introduce portable individual learning accounts, like Singapore’s “SkillsFuture” program as a potential model to empower workers with resources for lifelong learning.
• Supporting Gig Workers: Implement the Code on Social Security (2020) to ensure benefits such as health insurance and retirement savings for the growing platform-based workforce.

Conclusion

The AI for Viksit Bharat Roadmap positions AI as India’s growth engine to bridge gaps, create jobs, and drive equitable, responsible innovation for realizing Viksit Bharat by 2047.  

Source: PIB