AI for Viksit Bharat: Roadmap for Accelerated Economic Growth

17 Sep 2025

AI for Viksit Bharat: Roadmap for Accelerated Economic Growth

NITI Aayog launched two transformative initiatives, the ‘AI for Viksit Bharat Roadmap’ and ‘Frontier Tech Repository’ under its Frontier Tech Hub.

  • The AI for Viksit Bharat Roadmap delivers a clear, sector-specific action plan, while the Frontier Tech Repository inspires states and districts to scale technology for real-world impact.
  • NITI Aayog also announced two initiatives to amplify grassroots adoption of technology and scale impact creation: Frontier 50 Initiative & NITI Frontier Tech Impact Awards for States

About NITI Aayog’s AI for Viksit Bharat Roadmap

  • Focus: Achieving sustained 8%+ GDP growth by unlocking productivity and innovation through AI integration

Frontier Tech Repository: 

  1. Frontier 50 Initiative wherein NITI Aayog will support 50 Aspirational Districts / Blocks (ADP/ADB) to pick use cases from the Repository and deploy those frontier technologies that have potential to accelerate saturation of services across ADP/ABP themes.
  2. NITI Frontier Tech Impact Awards for States recognizing three states excelling in use of tech to improve governance, education, healthcare, livelihood etc., and supporting them to scale measurable, transformative outcomes.

  • Objective: Bridge the GDP growth gap, capture 10–15% of global AI value, and establish India as a trusted global AI leader
  • Approach: Two primary levers:
    1. Accelerating AI adoption across industries to enhance productivity and efficiency.
    2. Transforming R&D with generative AI, enabling leapfrog innovation.

Key Highlights of the Report

  • Key Economic Opportunity: According to a NITI Aayog report, accelerated adoption of Artificial Intelligence (AI) across industries can contribute USD 500-600 billion to India’s GDP by 2035 on the back of increased productivity and efficiency in the workforce, 
    • The adoption of AI across sectors is expected to add USD 17–26 trillion to the global economy.
    • Generative AI-driven R&D can create $280–475B in incremental GDP impact by 2035
    • Under the government’s Viksit Bharat vision, India’s GDP could rise to USD 8.3 trillion, an increase of USD 1.7 trillion over the current growth path.
  • Key Data Advantage: India can become the data capital of the world by scaling AI Kosh and building certified, interoperable, anonymized datasets in genomics, manufacturing telemetry, finance, and mobility
  • Key Skilling Ecosystem: Establishing AI Chairs in top universities, national certification programs, and an AI Open University can create a future-ready workforce
    • Continuous reskilling and portable “learning accounts” can protect jobs and ensure lifelong employability
  • Sector Specific Benefits: Banking, manufacturing, pharmaceuticals, and automotive emerge as priority sectors for AI-led transformation

AI Opportunities for India: Three Major Unlocks

  1. Accelerating AI Adoption Across Industries: This lever is projected to bridge 30-35% of the required growth step-up
    • Financial services: AI for compliance, fraud detection, and hyper-personalized banking.
    • Manufacturing: Smart-factory corridors, predictive maintenance, and AI-ready industrial parks
  2. Transforming R&D with Generative AI: This unlock is expected to contribute at least 20-30% of the required uplift
    • Drug discovery costs can be cut by 20–30%, timelines reduced by 60–80%.
    • Software-Assisted Vehicles (SAVs) and AI-designed components can make India a global hub for advanced automotive innovation
  3. Strengthening Technology Services (addressed in a separate NITI publication): This could contribute another 15-20% to the step-up.
    • Boosting India’s role as a technology service provider with AI-enabled higher-value solutions.

Opportunity for India

  • Demographic Dividend: With the world’s largest STEM workforce and a young population, India can channel AI adoption into productive employment and innovation.
  • Data Advantage: India’s vast, diverse, and multilingual datasets can make it the global data capital, powering innovation in genomics, manufacturing telemetry, and financial inclusion.
  • AI for Inclusive Growth: AI-driven solutions in agriculture, healthcare, education, and governance can bridge regional disparities and deliver last-mile services effectively.
  • Boost to Manufacturing: AI-enabled smart factories and predictive maintenance can integrate Indian industries into global Industry 5.0 supply chains, enhancing competitiveness.
    • It said the analysis shows that financial services and manufacturing can be most impacted and might have up to 20-25 per cent of their sectoral GDP attributed to AI by 2035.
  • Automotive Transformation: With AI-designed components and Software-Assisted Vehicles, India can become a major global automotive and auto-component exporter.
  • Technology Services Upgrade: AI strengthens India’s reputation as an IT leader by moving beyond back-office services to high-value, AI-powered global solutions.

Strategic Enablers for AI-Led Growth

  • Critical AI Infrastructure: Building sovereign cloud platforms, high-end GPU clusters, and interoperable national datasets to ensure India’s independent capability in AI scaling.
  • AI Governance: Establishing ethical frameworks, explainability standards, risk management protocols, and regulatory sandboxes for safe and responsible AI deployment.
  • Private Sector Leadership: Driving AI adoption in core industry processes, creating bionic organizations, and investing in workforce reskilling for sector-wide competitiveness.
  • Role of Academia: Anchoring fundamental research, creating AI safety and testing sandboxes, and designing advanced curricula to nurture PhDs and AI-specialist talent.
  • Equitable Access: Ensuring MSMEs, Tier-2/Tier-3 cities, and underrepresented regions have access to shared AI tools, datasets, and compute resources to prevent a digital divide.

Challenges

  • Data & Infrastructure Gaps: Fragmented ecosystems, limited high-performance computing, and reliance on legacy IT systems.
  • Talent Shortages: Insufficient AI-specialized workforce in sectors like manufacturing and biopharma.
  • Regulatory & Governance Risks: Privacy concerns, lack of explainability frameworks, and global patent recognition challenges for AI-generated outputs.
  • Inequitable Access: MSMEs and smaller institutions risk being left behind due to high costs and lack of awareness.

Way Forward

  • Strengthening IndiaAI Mission: Focus on its seven pillars which are compute capacity, innovation centers, datasets, applications, skills, startup financing, and safe AI deployment.

About India AI Mission

  • IndiaAI: It is a national program by the Government of India to develop indigenous Artificial Intelligence capabilities, infrastructure, datasets, and startups under a structured public-private partnership model.
  • Launched by: Ministry of Electronics and Information Technology (MeitY)
  • Launched in: Approved by Cabinet in March 2024
  • Objectives:
    • Make AI in India and Make AI work for India
    • Democratize AI access and use for governance, startups, and citizens
    • Build indigenous foundation and language models
    • Promote ethical, safe, and responsible AI
    • Create a self-reliant AI innovation ecosystem

  • Fostering Public-Private Collaboration: Build joint ecosystems where industry, academia, and government co-create AI solutions, regulatory sandboxes, and global standards.
  • Driving Sector-Specific Initiatives: Establish AI-ready industrial parks, create national datasets (omics, manufacturing telemetry), and design specialized workforce training programs.
  • Ensuring Global Alignment: Harmonize India’s AI frameworks with the EU AI Act, UNECE automotive standards, and global pharmaceutical norms to secure competitiveness in exports.
  • Promoting Inclusive Adoption: Extend AI access to MSMEs, Tier-2/Tier-3 cities, and gig workers through targeted skilling, financial subsidies, and robust digital infrastructure.

EU AI Act (2024)

  • World’s first comprehensive AI law, adopted by the European Union.
  • Approach: Risk-based framework and stricter rules for “high-risk” AI (healthcare, law enforcement, critical infrastructure).
  • Key Provisions:
    • Bans: Social scoring, manipulative AI, scraping facial data, exploitative biometric categorisation.
    • Restrictions: Biometric surveillance only in rare, court-approved cases (e.g., terrorism prevention, missing persons).
    • High-Risk AI: Mandatory risk assessments, logging, human oversight, transparency.
    • Generative AI: Training data summaries, copyright compliance, deepfake labelling.
    • Penalties: Up to €35 million or 7% of global revenue for violations.
  • Timeline: Prohibited uses banned within 6 months; full regime in place by mid-2026.
  • Global Impact: Seen as a template for the US, China, India, Japan, Brazil, UAE and others drafting AI laws.

United Nations Economic Commission for Europe (UNECE)  & AI

  • Develops international norms and standards across transport, trade, environment, and digitalisation.
  • On AI governance, UNECE provides: Policy forums for member states to share regulatory approaches.
    • Harmonisation of digital & AI standards to ensure cross-border consistency.
    • Support for developing countries in adopting safe AI aligned with sustainability and rights.
  • Significance: While the EU AI Act sets binding rules for Europe, UNECE helps shape broader UN-level dialogues on AI ethics, safety, and sustainability.

Conclusion

The AI for Viksit Bharat Roadmap treats AI as a national growth imperative, aiming to bridge the growth gap and build resilient industries. Success will rest on balancing innovation with inclusivity and speed with sustainability. The launch marks a call for collective action by uniting government, industry, and innovators to shape a technologically empowered Viksit Bharat by 2047.

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Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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