India’s AI push, driven by initiatives such as IndiaAI Mission and Creates of Excellence for AI, could add as much as USD 1.7 trillion to the economy by 2035, according to the government.
In a PIB press
note, the government said India stands at the cusp of a new era powered by AI, with the technology revolutionising classrooms through personalised learning, making cities cleaner and safer, and enhancing public services through faster, data-driven governance.
The government added that initiatives such as the IndiaAI Mission and the Centres of Excellence for AI are xpanding access to computing power, supporting research, and helping startups and institutions create solutions that directly benefit people.
Guided by the vision of “Making AI in India and Making AI Work for India”, the Cabinet approved the India AI Mission in March 2024, with a budget outlay of Rs 10,371.92 crore over five years.
Earlier, a NITI Aayog’s report, AI for Inclusive Societal Development (October 2025) pointed out that AI can empower India’s 490 million informal workers by expanding access to healthcare, education, skilling and financial institutions. It highlights how AI-driven tools can boost productivity and resilience for millions who form the backbone of India’s economy.
The PIB press note said that India’s technology sector is expected to generate annual revenues to USD 280 billion this year, providing employment to over 6 million people in the tech and AI ecosystem.
On the NASSCOM AI Adoption Index, India scores 2.45 out of 4, showing that 87% of enterprises are actively using AI solutions, the PIB press note added. Leading sectors in AI adoption include industrial and automotive, consumer goods and retail, banking, financial services and insurance, and healthcare.
India has secured the 3rd position globally in Artificial Intelligence competitiveness, according to a report by Stanford University’s 2025 Global AI Vibrancy Tool.
ccording to NASSCOM’s report “Advancing India’s AI Skills” (August 2024), India’s AI talent base is expected to grow from about 6 to 6.5 lakh professionals to more than 12.5 lakh by 2027, at a compound annual growth rate of 15 percent.
