AI likely to add $550 billion to India's GDP by 2035: PwC India study

PwC India estimates artificial intelligence could add $550 billion to key sectors by 2035, if adoption focuses on productivity, inclusion and sustainable growth

Artificial intelligence (AI) has the potential to add $550 billion to agriculture, education, energy, healthcare and manufacturing in India by 2035 at a nominal level, an economic modelling by PwC India has found.

 

For example, in the agriculture sector, which employs nearly half the workforce in India and contributes to around 18 per cent of the gross domestic product, the use of AI can add up to $154 billion by 2035, PwC India’s study found.

 

“Since India’s food production would need to increase by 70 per cent to feed its projected population of 1.6 billion by 2050, accelerating integration of digital technologies including AI, is vital for productivity gains and sustainability,” the study noted.

 

Similarly, in education where only 8.25 per cent of graduates in India are employed in roles matching their educational qualifications, the use of AI will be necessary to ensure that the increasing education budget of the country is meaningfully spent.

 

In the energy sector, for example, technologies such as AI will be critical to ensure optimal load distribution and prevent theft so that consistent supply of high-quality power is ensured for everyone. According to the PwC report, India is expected to consume energy equivalent to 2285 million tonnes of oil by 2047, up from 1213 million tonnes of oil equivalent energy consumed in 2025.

 

To drive equitable and sustainable growth within these five sectors, stakeholders within the system will need to adopt a ‘3A2I’ approach, PwC India has suggested in its report.

 

The 3A2I approach states that in order to ensure that the benefits of AI reach everyone in India, stakeholders must ensure access, acceptance and assimilation during the implementation and institutionalisation of the technology.

 

For example, under the umbrella of access, all stakeholders and sectors must be provided with the essential resources needed to harness AI effectively.

 

“These include the availability of quality data, advanced technology, robust digital infrastructure, and a skilled workforce. Ensuring equitable access means bridging digital divides, extending connectivity to rural and underserved areas, and equipping institutions and individuals with the tools and talent necessary to build AI solutions,” the report said.