Artificial intelligence (AI) has the potential to add $550 billion to India’s gross domestic product by 2035 at a nominal level, according to an economic modelling study by PwC India. The projected gains are expected to come primarily from five sectors agriculture, education, energy, healthcare and manufacturing.
The report highlights agriculture as one of the biggest beneficiaries of AI adoption. The sector employs nearly half of India’s workforce and contributes about 18% to the country’s GDP. PwC estimates that the use of AI-driven technologies in agriculture could generate up to $154 billion in additional value by 2035.
The study notes that India’s food production will need to increase by nearly 70% to feed a projected population of 1.6 billion by 2050. Accelerating the integration of digital technologies, including AI, will therefore be critical to improving productivity, resource efficiency and long term sustainability in the sector.
In education, the report flags a significant skills mismatch. Currently, only 8.25% of graduates in India are employed in roles aligned with their educational qualifications. PwC argues that AI-enabled solutions such as personalised learning, curriculum alignment with industry needs, and advanced analytics will be essential to ensure that rising public expenditure on education translates into meaningful employment outcomes.
The energy sector is another area where AI adoption could prove transformative. As India’s energy demand continues to rise, AI-based systems will play a key role in optimising load distribution, improving grid efficiency and preventing power theft. According to the report, India’s energy consumption is expected to increase to 2,285 million tonnes of oil equivalent by 2047, up from 1,213 million tonnes in 2025, underscoring the need for smarter and more resilient energy infrastructure.
To ensure that AI-led growth is equitable and sustainable, PwC recommends a ‘3A2I’ framework Access, Acceptance and Assimilation, supported by effective Implementation and Institutionalisation.
Under the ‘Access’ pillar, the report stresses the need for high quality data, advanced technology, robust digital infrastructure and a skilled workforce. Bridging the digital divide, extending connectivity to rural and underserved regions, and equipping institutions with the right tools and talent will be crucial to harnessing AI’s full potential.
The study concludes that while India’s AI opportunity is substantial, real economic impact will depend on coordinated execution across sectors, policy alignment and inclusive adoption at scale.
Follow Startupbydoc for daily startup insights, funding news, IPO analysis, and business breakdowns.