India’s leading public policy think tank, NITI Aayog, recently released a compelling report on September 15, 2025. This report underscores the immense potential of Artificial Intelligence (AI) to drive significant efficiencies across various industries, paving the way for India to achieve an ambitious 8% annual Gross Domestic Product (GDP) growth rate in the years to come.
According to the report, strategically accelerating AI adoption throughout different sectors to enhance productivity and overall efficiency could effectively bridge a substantial “30–35% of the gap” between the nation’s current growth trajectory and its aspirational 8% target.
The study highlights specific industries ripe for AI integration to foster new efficiencies. These include vital sectors such as pharmaceuticals, manufacturing, automobiles, and financial services, which are identified as prime candidates to lead this technological transformation.
Koshir Daka, a senior partner at McKinsey, elaborated on the transformative impact of AI at the report’s launch. He noted that AI has dramatically reduced the cost of developing new pharmaceutical molecules by approximately tenfold and has slashed the development timeline—typically around 10 years—by roughly half. This breakthrough, Daka suggested, presents a unique opportunity for India to become a global leader in drug innovation in the near future.
This report launch is part of a broader series of initiatives leading up to India’s hosting of the AI Impact Summit in February 2026. This prestigious event will follow other significant AI-focused gatherings held in Paris, Bletchley Park (U.K.), and Seoul, showcasing India’s growing commitment to global AI leadership.
S. Krishnan, the IT Secretary, emphasized the profound and far-reaching impact AI can have, not just on India’s economy but on the global economic landscape. He stressed the imperative for India to assume a leading role in this critical technological domain.
A crucial recommendation within the report focuses on equipping the workforce with necessary skills, particularly for roles potentially impacted by AI. It suggests annual mapping of job shifts, integrating continuous learning into career paths, expanding digital upskilling programs for Micro, Small, and Medium Enterprises (MSMEs), and ensuring protection for gig and platform workers.
Debjani Ghosh, former Nasscom president and a distinguished fellow at NITI Aayog, shared her insights, stating that India requires a comprehensive, long-term AI strategy rather than simply reacting to global trends. She affirmed that NITI Aayog actively engages with various Union Ministries through its Executive and Strategy Councils to meticulously craft this strategic planning. Ghosh highlighted that the report meticulously outlines “very specific recommendations on what needs to happen in order to unlock productivity in these sectors.”
Furthermore, NITI Aayog unveiled its Frontier Tech Hub, an invaluable resource that compiles existing examples of impactful technological interventions across diverse fields like agriculture and education. Ms. Ghosh expressed hope that this hub would inspire more aspirational districts and blocks to explore and implement similar interventions, thereby achieving better outcomes in areas such as education.
During the event, Finance Minister Nirmala Sitharaman urged more States to leverage government funding designed to upgrade Industrial Training Institutes (ITIs) in every district. The goal is to empower these institutions to effectively upskill young people in the burgeoning field of Artificial Intelligence, ensuring India’s future workforce is AI-ready.