India stands at a pivotal turning point: artificial intelligence (AI) especially Generative AI is reshaping traditional industries and redefining its economic trajectory. With the domestic AI market projected to hit $17 billion by 2027 and a rapidly growing base of over 600,000 AI professionals, India now claims 16% of global AI talent.

AI’s impact spans agriculture, logistics, healthcare, MSMEs, fintech, and public services. ITC’s MAARS platform offers personalised crop advice to 2 million farmers; supply chains are getting smarter, and AI-driven diagnostics are transforming rural healthcare. Indian fintech firms use alternate data sources to extend credit to underserved populations.

Major gains are visible: productivity increases of up to 66% through Generative AI, and projected GDP additions of $500 billion–$967 billion by 2035. This economic momentum is backed by initiatives like the IndiaAI Mission, mobile GPU purchases, and partnerships with OpenAI to support localized platforms and workforce reskilling.

Still, India faces challenges. Automation threatens up to 60 million manufacturing jobs by 2030; rural internet access and advanced computing infrastructure remain unequal; and domestic chip-manufacturing capacity is limited. Strategic policies must invest in inclusive skill development and AI governance to mitigate risks.