Paper Details

Name: Pranav D Indulkar, Co-Author: Vidya Hattangadi
Country: India

Year: 2025
Volume: Special Issue: Volume-12, Issue-1, Year: 2025 (January-June)
Page Number: 197-205
DOI: https://doi.org/10.5281/zenodo.15357121

Artificial Intelligence (AI) is revolutionizing economies worldwide, and India is no
exception. As the country strives to become a $5 trillion economy, AI presents vast
opportunities for enhancing productivity, optimizing business processes, and fostering
innovation across key sectors such as agriculture, manufacturing, finance, healthcare, and
education. This paper examines the impact of AI on the Indian economy by analyzing its
contributions to GDP growth, job creation, and sectoral transformation.
Despite AI’s potential to drive economic progress, its adoption in India is accompanied by
several challenges, including concerns over automation-induced job displacement, ethical and
regulatory issues, and the need for robust AI infrastructure. The study also explores the role
of government initiatives, such as NITI Aayog’s National AI Strategy and Digital India, in
shaping India’s AI-driven future.
Using a comprehensive review of existing literature and industry reports, this research
highlights both the opportunities and challenges associated with AI adoption in India. The
findings suggest that while AI can significantly boost economic efficiency and innovation, a
strategic policy framework is essential to mitigate risks and ensure inclusive growth. The
paper concludes with recommendations for policymakers, businesses, and stakeholders to
leverage AI responsibly and sustainably for India’s economic advancement.
(Keywords: Artificial Intelligence, Indian Economy, AI Adoption, Economic Growth,
Industry 4.0, Digital Transformation, Policy Framework, Future of Work)