THE $1-TRILLION AI PUSH

The government has chalked out an ambitious plan for making Al the next growth frontier and taking the Indian economy close to the $25 trillion goal by 2047

Starting from privatization in 1991, India's phenomenal GDP growth in the last three decades has come in leaps and bounds.

The next push came in the 2000s from the IT sector, which while capitalizing on the Y2K demand, captured a bigger global software services pie. The IT success was followed by pharma and auto exports, which firmly put India on the 8% GDP growth path. Subsequently, the formalization of the economy with GST and digitalization in the last 8-10 years has brought the $5 trillion economy goal in sight.

Currently, consumption, manufacturing and services are driving India's growth, while emerging frontiers such as climate change and clean tech and transport promise upcoming avenues to become a $25 trillion economy by 2047, well in time for the country's 100th anniversary.

Artificial Intelligence (Al), brought in the public limelight with ChatGPT, has emerged as another road for India to move towards its growth targets. The government has charted a roadmap to add almost $1 trillion to the Indian economy by harnessing the power of Al.

$967 BILLION VISION

India's approach to building a national Al ecosystem is characterized by a mission-centric strategy with the vision of 'Al for All.' The Ministry of Electronics and Information Technology (Meity) has unveiled the IndiaAl Report 2023, a comprehensive blueprint chalked by seven working groups, offering practical recommendations for developing the Al ecosystem. The primary objective is to enhance governance through smarter and more data-led approaches.

The report predicts that Al will contribute $967 billion to the Indian economy by 2035 and $450 billion to 500 billion to India's GDP by 2025, accounting for 10% of the country's $5 trillion GDP target. This report builds upon existing initiatives like the Draft National Data Governance Policy 2022.