AI to add $607B to India's economy by 2035: PwC
26 Jan 2026

A recent report by PwC has predicted that artificial intelligence (AI) will contribute around $607 billion to India's economy by 2035.

The contribution is expected to be seen across key sectors such as agriculture, healthcare, energy, education, and manufacturing.

The study also estimates that AI could add as much as 15% to the global GDP by the same year.

AI's role in boosting India's economic sectors
Sectoral impact

The PwC report highlights that AI could contribute between $550.2 billion and $607.3 billion to five major sectors by 2035.

The study emphasizes that India is leveraging these benefits through targeted investments and also policy measures, to integrate AI into various industries for productivity gains as well as economic growth.

Agriculture sector's productivity challenges and AI's role
Agricultural growth

The report notes that agriculture continues to be the backbone of India's economy. However, productivity challenges persist with 86% of farmers being small and marginal.

The report stresses that rapid adoption of digital technologies, including AI, is important for boosting productivity and ensuring sustainability in this sector.

It also highlights the need for significant growth in gross value addition (GVA) of agriculture from an estimated $637 billion in FY25 to $2,359 billion by FY47.

Education sector's transformation through AI
Educational reform

PwC highlights the need for transformation in India's education sector.

It cites the Economic Survey 2024-25 which says only 8.25% of graduates are employed in jobs aligned with their educational qualifications.

The study recommends increasing the gross enrollment ratios among disadvantaged groups, and investing in multidisciplinary and skill-oriented programs to transform India's demographic dividend into a skilled workforce.

AI's potential in healthcare and energy sectors
Sectoral enhancement

The report highlights healthcare as a vital sector where scaled tertiary and super-specialty care can generate high-skill jobs.

It also emphasizes the role of AI in ensuring cost- and resource-efficient universal electricity coverage with a consistent supply of high-quality power.

The study notes that a very efficient and productive energy ecosystem is crucial for achieving Viksit Bharat goals, while the transition toward a greener energy mix will support climate objectives and improve rural livelihoods.

AI's role in manufacturing and job creation
Industrial growth

PwC emphasizes the potential of AI in boosting manufacturing.

It says accelerated growth across sectors like semiconductors, high-tech telecommunications, solar panels, and electronics can strengthen Aatmanirbhar Bharat.

The study notes that manufacturing can create large-scale employment opportunities, bridge the urban-rural divides, and lower inequality through women-led development and skilling in STEM (science, technology, engineering, mathematics) and vocational trades.