New Delhi: India’s aggressive push into Artificial Intelligence could unlock an additional $1.7 trillion for the national economy by 2035, the government said in its year-end note, signalling the country’s growing clout in the global AI race.
The note underlined that India’s technology sector is on course to cross $280 billion in annual revenue, fuelled by rapid adoption of AI across sectors ranging from IT services and manufacturing to healthcare, finance and governance.
At the heart of this transformation is the IndiaAI Mission, alongside newly established Centres of Excellence, aimed at expanding access to high-end computing, accelerating research and enabling startups to build citizen-centric AI solutions.
The government said its strategy is centred on open, affordable and inclusive AI, ensuring innovation translates into real social and economic gains. “India’s approach is to make AI work for the country, not just for a few,” the note said.
Jobs, Startups and Global Rankings
India’s tech and AI ecosystem now employs over six million people, highlighting strong job creation even as automation accelerates. The country is also home to around 1.8 lakh startups, with nearly nine out of ten new startups launched last year integrating AI into their products or services.
Reflecting this momentum, India has emerged as the world’s third most AI-competitive nation, according to Stanford University’s 2025 Global AI Vibrancy Tool, which tracks AI growth and innovation between 2017 and 2024.
Big Budget, Bigger Compute Power
Approved by the Union Cabinet in March 2024, the IndiaAI Mission carries a budget outlay of ₹10,371.92 crore over five years. A key focus has been building robust AI infrastructure. Since the mission’s launch, India has expanded its planned AI compute capacity from 10,000 GPUs to 38,000 GPUs, offering startups, researchers and institutions access to world-class resources at subsidised rates.
Officials said the scale-up marks a decisive step towards positioning India as a global AI hub, with long-term gains expected in productivity, innovation and economic growth.
As AI reshapes industries worldwide, the government believes India’s combination of talent, startups and policy support could turn technology into one of the biggest drivers of growth in the coming decade.
