Those who can actually use AI will have an advantage
The picture is becoming clearer. The competition is no longer about “who has the AI,” but who can leverage it deeply and integrate it into real-world work processes. Countries that can effectively integrate AI into their workflows will reap long-term benefits in productivity, decision-making, and innovation. In this new game, developing countries are no longer “followers” but are increasingly becoming true “leaders” of the AI-era economy.
AI could unleash India’s economy, boosting GDP by $600 billion by 2035
India is moving towards a “major tipping point” in its economy, with AI moving from just a cutting-edge innovation to a “productivity engine” that has the potential to significantly improve the entire system over the next decade.
According to a PwC report, AI could add $550 billion to $607 billion to India’s economy by 2035, equivalent to about 6% of the country’s GDP. This diagram shows that India, one of the world’s fastest growing large economies, has the potential to be ‘reset’ by AI, not just technologically, but through broader ‘productivity’ improvements across sectors.
Manufacturing and agriculture are the main economic drivers
At the heart of this growth are two core sectors, which are expected to generate more than two-thirds of the total. Manufacturing is expected to add between US$235 billion and US$259.1 billion through AI applications in predictive maintenance, smart automation, and supply chain optimization.
The use of AI in real-time crop monitoring, smart water management, and more accurate weather forecasting is expected to increase agriculture by US$139.3 billion to US$153.9 billion. Integrating AI in these two areas will not only help in ‘reducing costs’ but will also significantly increase ‘output per unit’ which is important for a country with a huge workforce like India.
AI is permeating every part of the economy
Beyond the major sectors, other industries are also set to clearly benefit, including energy and utilities with $76.6 billion to $84.6 billion, education with $70.2 billion to $77.6 billion, and healthcare with $29.1 billion to $32.1 billion. In education in particular, AI is beginning to reduce administrative and administrative burdens, paving the way for teachers and staff to focus more on “quality of learning” and student engagement.
What’s surprising is that the transition to AI doesn’t start with robots or overly complex technology, but with making “everyday tasks” smarter.
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India is betting on productivity
The growth of AI in India is not just a matter of technology, but an “economic strategy” aimed at improving productivity across the system. In a world where competition is no longer measured only by cheap labor but by ‘speed + efficiency + data usage’, India is showing that developing countries can be at the forefront of the AI era. The key question is whether other countries are ready or whether they are being left behind without realizing it.
