AI could add $550 billion to India’s economy by 2035 across key sectors: PwC

Artificial intelligence could contribute nearly $550 billion to India’s economy by 2035, according to PwC, driving growth across agriculture, healthcare, energy, education, and manufacturing while positioning India as a global model for inclusive and ethical AI adoption.

Artificial Intelligence (AI) is poised to become a major growth engine for India, potentially adding around $550 billion to the economy by 2035, according to a new report by consulting firm PwC.

The report, titled AI Edge for Viksit Bharat, was launched at the World Economic Forum (WEF) in Davos last week. It estimates that AI alone could generate close to $550 billion in nominal value across five priority sectors—agriculture, healthcare, energy, education, and manufacturing—over the next decade.

PwC noted that India has the opportunity to emerge as a global example of how developing economies can deploy AI in a way that is both transformative and fair.

Agriculture: Productivity Through AI Adoption

Agriculture, described as the backbone of India’s economy, will play a critical role in achieving the country’s long-term development goals. The report estimates that the sector’s gross value added must rise sharply from about $637 billion in FY25 to nearly $2,359 billion by FY47 to meet the vision of Viksit Bharat.

However, productivity remains a key challenge, with nearly 86% of Indian farmers classified as small or marginal, owning less than one hectare of land. PwC stressed that faster adoption of digital tools—particularly AI-driven solutions—is essential to improve yields, resource efficiency, and long-term sustainability in farming.

Energy as a Growth Enabler

The energy sector was identified as a crucial enabler for growth in both manufacturing and agriculture. PwC said an efficient, productive, and reliable energy system is vital for industrial expansion and modern farming practices, making it central to India’s broader economic transformation.

Healthcare and Medical Talent Retention

In healthcare, the report highlighted the expansion of tertiary and super-speciality care through medical colleges linked to district hospitals as a major opportunity. Such an approach could create high-skill jobs, retain medical talent within the country, and boost medical tourism.

AI can play a significant role in improving diagnostics, operational efficiency, and access to advanced treatments beyond major urban centres, the report added.

Manufacturing and Global Value Chains

PwC identified manufacturing sectors such as semiconductors, solar panels, telecommunications, and electronics as key beneficiaries of AI adoption. Accelerated growth in these areas, supported by AI and digital technologies, could strengthen the Aatmanirbhar Bharat initiative and deepen India’s integration into global value chains.

Education, Governance, and Skills

Beyond core sectors, the report noted that AI can significantly improve education quality, governance efficiency, and skill alignment. By better matching education outcomes with industry needs, AI could help make students more employable and future-ready.

Frameworks for Large-Scale AI Adoption

PwC outlined two key frameworks to guide India’s AI journey. The AI Edge framework identifies five outcomes of large-scale AI adoption: operational excellence, sustainability, good governance, resilience, and financial discipline.

The report also introduced the 3A2I framework, aimed at making AI a connected system for national development. This approach focuses on building access to data, infrastructure, and skills; fostering acceptance through trust, transparency, and ethical safeguards; and enabling assimilation by embedding AI into real-world processes. Once established, the framework supports large-scale implementation, strong governance, and continuous learning.