India could be the world’s data capital: NITI Aayog report
STORIES, ANALYSES, EXPERT VIEWS
India could emerge as the world’s data capital, leveraging its vast population, linguistic diversity, and cultural richness to set global benchmarks in trusted data ecosystems. A new report by NITI Aayog, titled AI for Viksit Bharat underscores that by placing quality, trusted, and interoperable data at the centre, India can establish itself as a leader in the breadth, depth, and reliability of data.
AI could add $500–600 billion by 2035: The analysis suggests that AI could add an incremental $500–600 billion to India’s GDP by 2035, over and above its current growth trajectory. This gain would stem from higher productivity, operational efficiencies, and the redeployment of human effort towards higher-value tasks.
Potential sectors identified: The report identifies manufacturing, pharmaceuticals, banking, and automotive as four priority sectors with the greatest potential for AI-led transformation. Manufacturing, in particular, is described as central to India’s development story, with AI expected to drive innovation in areas such as predictive maintenance, supply chain optimisation, and quality control.
Challenges: Yet, the path forward is not without challenges. India must simultaneously prepare a digitally skilled workforce while ensuring that those displaced by automation are reskilled and redeployed into other sectors. “Narrowing the AI skill gap with leading countries by 2035 will require a strong push in talent development, advanced research, and building globally competitive AI models,” the report notes.
Equally important will be aligning industrial and trade policies to deepen domestic demand while securing stronger participation in global value chains. As global rulebooks on AI evolve rapidly, India’s ability to balance productivity gains with innovation and market creation will be critical to realising its ambitions of becoming both a data powerhouse and an engine of economic growth.
(BT)
