India may lose $270 bn manufacturing GDP by 2035, $1 tn by 2047 without frontier tech: Report

India risks forfeiting $270 billion in manufacturing GDP by 2035 and a staggering $1 trillion by 2047 if it fails to harness frontier technologies, according to a report by Angel One. The financial firm highlights AI-led innovation, automation, and the adoption of cutting-edge technologies as crucial components for unlocking India's advanced manufacturing potential. However, the report points out that India lags behind the US and China in deep-tech and semiconductors, which could contribute to the projected GDP shortfall.

The report identifies key sectors where advancements in frontier technologies could significantly boost India's manufacturing GDP. These areas include electric drivetrain and battery systems, semiconductor chip engineering and design, resource circularity and component recycling, and new consumer appliances. AI and robotics are expected to play a substantial role in driving this growth.

The report also notes that market performance reflects this gap, with India's CY25TD returns at 5%, compared to 16% in the US and 21% in China. By implementing broader adoption of advanced technologies, the country stands to add an estimated $1.1 trillion to its manufacturing GDP by 2047, with AI and robotics contributing significantly to this growth.

Failure to adopt frontier technologies in high-impact manufacturing sectors could lead to India missing out on $270 billion in potential additional manufacturing GDP by 2035 and $1 trillion by 2047.