India launched “AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth” on September 15, 2025, outlining a bold national plan to harness artificial intelligence as a strategic lever for achieving 8%+ annual GDP growth and transforming India into a developed nation by 2035. The roadmap, released by NITI Aayog at an event with high-level government and technology leaders, positions AI as central to bridging nearly half the gap between India’s current growth trajectory and the $8.3 trillion GDP target set for 2035.
AI as the Growth Multiplier
NITI Aayog CEO BVR Subrahmanyam called AI a “decisive lever” for sustained high growth, stating: “With a focused and sector-specific approach, industries such as banking and manufacturing can deploy AI today to improve efficiency, service quality, and competitiveness, creating momentum for deeper transformation.” The report highlights that AI adoption across industries could account for 30–35% of the required growth acceleration, while generative AI-enabled R&D could add another 20–30%.
Sector-by-Sector Impact
- Banking & Financial Services: AI is projected to enable hyper-personalized customer experiences, advanced fraud detection, and more inclusive lending, unlocking $50–55 billion in additional value by 2035.
- Manufacturing: AI-driven productivity, predictive maintenance, and intelligent design could add $85–100 billion to the sector’s output.
- Pharmaceuticals: AI could reduce drug discovery costs by up to 30% and shorten timelines by 80%, positioning India as a global innovation leader beyond generics.
- Automotive: The plan envisions 18–20 million software-assisted vehicles by 2035, supported by smart corridors and digital testing parks, driving $20–25 billion in export gains and import substitution.
Beyond these immediate targets, the roadmap identifies AI-enabled drug discovery, software-driven vehicles, and next-generation auto components as future growth engines, arguing for sustained investment in frontier innovation.
National AI Challenges and Solutions
The report identifies five priority sectors: banking, manufacturing, agriculture, health, and government services, urging a “make in India and make for the world” AI strategy. To address barriers—including skill gaps, data silos, and high costs—NITI Aayog is launching a Frontier Tech Repository with 200+ real-world case studies and practical tools for states to replicate tech-driven solutions at scale.
Union Minister Ashwini Vaishnaw emphasized, “Practically everything is going to be impacted. Hence, India needs to be a frontrunner in the use of AI. We need to adopt and master these technologies. We need to develop a talent pipeline.” He cited the Semiconductor Mission (2022) as a model for developing long-term talent and research capacity.
$1–1.4 Trillion GDP Boost Expected by 2035
The roadmap estimates AI could add $1–1.4 trillion to India’s GDP by 2035, helping close the gap to the $8.3 trillion target and sustaining 8%+ annual growth. This would propel India into the ranks of developed nations, achieving the “Viksit Bharat” (Developed India) vision by 2035—ahead of the 2047 centenary target.
Governance and Collaboration
The strategy calls for multi-ministerial collaboration (PMO, Finance, Electronics & IT, Health, Agriculture, Education), public-private partnerships, startup incubation, and global technology alliances. NITI Aayog’s Frontier Tech Hub will act as a national knowledge platform, enabling states to benchmark, share, and scale AI innovations.
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The Bottom Line
“AI for Viksit Bharat” is not merely a technology policy—it is a national economic transformation agenda. By accelerating AI adoption in key sectors, fostering homegrown innovation, and building a robust digital infrastructure and talent pipeline, India aims to leapfrog into the ranks of advanced economies within a decade
