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AI to Add $1.7 Trillion to India's Economy by 2035

CIO Insider Team | Wednesday, 31 December, 2025
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The forecast arises as India increases public investment and policy backing for AI via initiatives like the IndiaAI Mission, which has received over Rs 10,300 crore over five years to establish computing infrastructure, assist startups, create indigenous AI models, and enhance skilling programs, the government stated.

The economic influence will stem from AI integration in various sectors such as healthcare, agriculture, manufacturing, financial services, education, governance, and climate services, where automation and data-informed decision-making are enhancing productivity and service quality.

India's technology industry now employs more than six million individuals, and government statistics indicate that AI will generate new job categories while also changing current positions, they stated.

Industry projections suggest that the nation's AI workforce may exceed 12.5 lakh professionals by 2027, highlighting the increasing need for expertise in data science, AI engineering, and analytics.

Also Read: Lookback 2025: 7 Companies that Embraced & Advanced AI this Year

The government has initiated extensive reskilling programs. "According to official statistics, over 18.5 lakh individuals have registered on the FutureSkills PRIME platform, with more than 3.37 lakh professionals having finished courses in AI and other new technologies."

In an isolated roadmap, NITI Aayog has emphasized AI's potential to assist India's 490 million informal laborers by enhancing access to training, healthcare, financial services

A fundamental aspect of India's approach is creating accessible AI infrastructure. As part of the IndiaAI Mission, the nation has increased its capability from an original target of 10,000 Graphics Processing Units (GPUs) to 38,000 GPUs, which are offered to startups and researchers at discounted prices. Authorities state that this will assist in lowering obstacles for innovation and speed up local AI advancement.

Also Read: Lookback 2025: 7 of the Year's Biggest Tech Acquisitions

The government is emphasizing inclusion as AI-driven tools are being utilized in Indian languages to enhance access to digital services. Initiatives like Bhashini and BharatGen, India's government-backed multilingual AI model, strive to guarantee that the advantages of AI reach users outside of urban, English-speaking demographics.

Also Read: Lookback 2025: 7 Indian Companies That Drove Major Expansions

In an isolated roadmap, NITI Aayog has emphasized AI's potential to assist India's 490 million informal laborers by enhancing access to training, healthcare, financial services, and instantaneous advisory tools, especially via voice-driven and mobile-centric technologies.



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