AI Could Add $79 Billion To India's GDP In 10 Years As 89% Of Young Indians Show Interest In Using Artificial Intelligence

New Delhi: Artificial intelligence (AI) could inject $79 billion into India's economy within the next decade, according to a report by Ayre Think Tank. The analysis highlights India's pivotal role in the Commonwealth's AI landscape, citing that 89% of young Indians are keen on using AI for education or work within the next year.

The report noted that India's strong digital infrastructure, 4G connectivity, and affordable mobile data have bolstered the country's preparedness for AI adoption. However, it pointed out that access to mobile phones among young people remains a challenge, with only about two-thirds owning one. Labor market hurdles also pose significant challenges, as 30% of young people are unemployed, underemployed, or not in education or training, while 86% of young workers operate in the informal sector.

Despite these hurdles, if AI adoption progresses as projected, India's GDP could rise by $79.1 billion within a decade, ranging from $39.6 billion under conservative estimates to nearly $118.7 billion in the most optimistic scenario. Ayre Think Tank founder Calvin Ayre emphasized India's proactive steps in converting technological strengths into employment opportunities, citing the government's recent initiatives to train ten million young people in AI skills within a year and the launch of AI training programs with Intel India.

The report suggests five priorities for governments to maximize AI's benefits, including improving technology accessibility, fostering skills-based education, bridging the gap between training and employment, tailoring AI tools to local languages and needs, and ensuring safeguards for users to contest automated decisions.