New Delhi, Oct 12 India is stepping into a new era powered by Artificial Intelligence (AI), with the government estimating that AI could add up to $1.7 trillion to the country's economy by 2035, the government said on Sunday.
The technology is transforming lives across sectors -- from healthcare and education to agriculture and governance -- making daily life simpler, smarter, and more connected.
Under Prime Minister Narendra Modi’s vision of “Making AI in India and Making AI Work for India,” the government is taking major steps to build an inclusive and powerful AI ecosystem.
A major part of this effort is the IndiaAI Mission, which was approved by the Cabinet in March 2024 with a budget of Rs 10,371.92 crore to be spent over five years.
Since its launch, the mission has made remarkable progress. Against the initial target of deploying 10,000 GPUs, India has already achieved 38,000 GPUs, expanding affordable access to advanced AI computing infrastructure.
The mission, implemented by IndiaAI under the Ministry of Electronics and Information Technology (MeitY), aims to drive innovation, support startups, strengthen data access, and ensure responsible use of AI for public good.
The country’s AI and tech ecosystem is also growing rapidly. India’s technology sector is projected to cross $280 billion in annual revenue this year, employing more than 6 million people.
The country is home to over 1,800 Global Capability Centres, including 500 focused on AI, and around 1.8 lakh startups, with nearly 89 per cent of the new ones using AI in their products or services.
According to the NASSCOM AI Adoption Index, India scores 2.45 out of 4, with 87 per cent of enterprises actively using AI solutions.
A recent BCG survey also found that about 26 per cent of Indian companies have achieved AI maturity at scale.
The leading sectors driving AI adoption include industrial and automotive, consumer goods and retail, BFSI, and healthcare, which together contribute nearly 60 per cent of AI’s total value in India.
India’s growing recognition in global rankings further reflects its progress. The Stanford AI Index places India among the top four countries in AI skills, capabilities, and policies, while the country is also the second-largest contributor to AI projects on GitHub.
A recent NITI Aayog report titled “AI for Inclusive Societal Development” (October 2025)** highlights how AI can empower India’s 490 million informal workers by improving access to healthcare, education, skilling, and financial inclusion.
It emphasises that technology can bridge deep social and economic divides and ensure that the benefits of AI reach every citizen.
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