GenAI can add USD 1.2-1.5 trillion to India's economy by 2030

In a groundbreaking projection, experts anticipate a seismic economic surge in India, powered by the innovative integration of Generative Artificial Intelligence (AI). A recent study conducted by leading economists and tech analysts has unveiled a staggering forecast, suggesting that the strategic utilization of Generative AI could boost India's economy to unprecedented heights, potentially adding a substantial $1.2-1.5 trillion to its GDP over the next seven years.
A report prepared by the global accounting/consulting firm,EY,said by fully capitalising Gen AI technology and its applications across sectors, the country can potentially add $359-438 billion in FY2029-30 alone, reflecting a 5.9% to 7.2% increase over and above baseline GDP. Approximately 69% of the overall impact is expected to be derived from sectors such as business services (including IT, legal, consulting, outsourcing, rental of machinery and equipment, and others), financial services, education, retail, and healthcare. The expected impact encompasses improvements in employee productivity, enhanced operational efficiency, and personalised customer engagement, stated report.
The EY study, in which over 200 C-suite executives participated, revealed some 60% of organisations acknowledged the influence of Gen AI on their businesses. However, 75% of them expressed a low to moderate level of readiness to harness the benefits of Gen AI. The two primary challenges faced by organisations currently are skills-gap (52%) and the availability of unclear use cases (47%), while only 36% organisations see data privacy as the risk of Gen AI, stated report.
While the potential economic windfall is substantial, there remain challenges and considerations regarding data privacy, security, and the ethical use of AI technologies. Striking a balance between innovation and ethical implementation will be pivotal in realizing the full potential of Generative AI's impact on India's economy.As India sets its sights on harnessing the transformative power of Generative AI, this technological leap holds the promise of reshaping industries, bolstering economic growth, and solidifying its position as a global AI powerhouse in the years to come.

(Ira Singh, Asstt Editor, Gandhinagar)