AI Could Add $118 Billion to India's GDP

Artificial intelligence could contribute between $39.6 billion and $118.7 billion to India's GDP over the next ten years, with a moderate estimate of $79.1 billion. A report by the Ayre Think Tank ranks India 11th among 56 Commonwealth nations in the AI landscape, noting it represents the second-largest economic opportunity within that group.

Despite 89% of young Indians intending to use AI for work or education in the coming year, the report highlights significant structural hurdles. These include a 30% youth unemployment rate and a high concentration of workers in the informal sector.

To mitigate these challenges, Prime Minister Narendra Modi announced plans in August 2026 to train 10 million young people in AI skills within one year. The Government of India followed this announcement in September 2026 by launching training programs in partnership with Intel Technology India Pvt Ltd to provide youth with practical skills. Calvin Ayre, founder of the Ayre Think Tank, stated that these initiatives show how India is working to turn its technological strengths into employment opportunities and economic growth.