AI 'decisive lever' for 8% economic growth rate: NITI Aayog CEO | Current Affairs | Vision IAS

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AI 'decisive lever' for 8% economic growth rate: NITI Aayog CEO

2 min read

AI for Viksit Bharat: Accelerated Economic Growth

India aims to leverage artificial intelligence (AI) as a key driver to achieve rapid economic growth, aligning with the vision of 'Viksit Bharat'. This is outlined in a roadmap released by NITI Aayog and the Niti Frontier Tech Hub.

Economic Growth Potential

  • AI adoption is projected to bridge nearly half of the growth gap needed to elevate India's GDP from $6.6 trillion to $8.3 trillion by 2035.
  • To achieve an aspirational 8% growth trajectory, productivity and innovation must be unlocked at scale.

Sector-Specific AI Deployment

NITI Aayog CEO BVR Subrahmanyam highlights AI's role in achieving an 8% plus growth rate, emphasizing sector-specific deployment in industries like banking and manufacturing.

  • Two major growth unlocks: 
    1. Accelerating AI adoption across industries (30–35% growth step-up).
    2. Transforming R&D with generative AI (20–30% contribution).

Sectoral Impact

  • Banking and Financial Services:
    1. AI can enable hyper-personalized customer experiences and advanced fraud detection.
    2. Potential to unlock $50–55 billion in additional value by 2035.
  • Manufacturing:
    1. AI can drive productivity gains, predictive maintenance, and intelligent product design.
    2. Could add $85–100 billion in value.

Frontier Innovation

  • Pharmaceuticals:
    1. AI could reduce drug discovery costs by up to 30% and shorten timelines by as much as 80%.
  • Automotive:
    1. Roadmap envisages 18–20 million software-assisted vehicles by 2035, supported by smart corridors.
    2. Potential export gains and import substitution of $20–25 billion.

Conclusion

The report concludes that India's mission for sustained 8%+ growth should focus on bold AI integration and innovation, supported by robust infrastructure, responsible governance, and industry-academia collaboration.

  • Tags :
  • Economic Growth
  • AI for Viksit Bharat
  • Frontier Innovation
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