Artificial Intelligence (AI) could contribute more than $500 billion to India’s economy by 2030, according to a new report by IBM and IndiaAI. The study says AI can help India become one of the world’s fastest-growing AI-driven economies over the next few years.
The report, titled From Promise to Power: How AI is Redefining India’s Economic Future, shows strong confidence among business leaders about AI’s future in India. Around four out of five executives surveyed said AI investments will directly help India’s GDP growth. At the same time, 73% believe India can become a leading global AI nation by 2030.
However, the report also points out that many Indian companies are still behind in adopting AI technology. About 72% of organizations surveyed said they lag behind global competitors in AI adoption. Experts say India must close this gap quickly to strengthen its position in the global AI market.
“AI must evolve as an extension of our people’s aspirations, driving inclusive growth and national progress. Guided by our vision of Viksit Bharat, we are advancing a human centric approach to AI rooted in trust, ethics, and national sovereignty,” said S Krishnan, Secretary - Ministry of Electronics & Information Technology (MeitY).
“AI has the potential to become one of the most powerful growth engines for India’s economy,” said Sandip Patel, Managing Director, IBM India & South Asia. “What will set India apart is not just the scale of adoption, but how organizations build trusted AI agents and systems on strong data foundations, hybrid architectures, and a workforce empowered to work alongside AI. With the right investments in skills, governance, and infrastructure, India can translate AI ambition into sustained economic impact,” he added.
The report says India needs strong data systems and secure cloud infrastructure to support AI growth. Around 57% of respondents said uneven data quality is a major challenge. Another 77% said the lack of affordable and secure cloud infrastructure is slowing AI readiness in the country.
The study also highlights the growing importance of sovereign and hybrid cloud systems. About 74% of executives said it is important for organizations to control where their data is stored. Many companies believe keeping sensitive data within India will improve trust and security while still allowing access to global technology and innovation.
According to the report, Indian companies are slowly moving from small AI experiments to larger-scale use. At present, only 15% of organizations are making major investments to scale AI across departments, while 85% are still testing AI through pilot projects.
The report also points to a major skills gap in the country. Currently, only around 30% of employees have the AI skills businesses need. By 2030, that number must rise to nearly 57%. The study estimates that India could require more than 350 million AI-skilled workers by the end of the decade.
To meet this demand, experts say India must improve education, training, and career development in AI-related fields. Programs such as IndiaAI FutureSkills are already helping by promoting AI learning and setting up AI and data labs in Tier 2 and Tier 3 cities.
The report concludes that better governance, stronger partnerships, and investment in infrastructure and skills will be necessary for India to fully benefit from the AI revolution.
