AI’s impact

How AI can unlock more than USD 550 billion in economic value in India.

Economic modeling conducted as part of PwC's Value in Motion research reveals that in India, for the five sectors of energy, education, agriculture, healthcare, and manufacturing, AI could drive growth rates ranging from 14% to 40.5% by 2035. Overall, AI has the potential to contribute between USD 550 billion to USD 607 billion to these five sectors by 2035 at a nominal level.

AI Impact

Potential contribution of AI by 2035

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Total value potential in USD (at a nominal level)

$ 139.3 - $ 153.9 Bn

14.0% growth due to AI

The AI-Edge framework

The 3A2I framework has the potential to help our nation edge ahead on five counts: operational excellence, sustainability, good governance, resilience and financial discipline, the key components of what we call the AI-Edge framework. The AI-Edge framework (mentioned below) identifies five measurable outcomes achievable through scalable, sector-specific applications of AI technologies, quantifying the value AI can unlock.

The 3A2I framework has the potential to help our nation edge ahead on five counts: operational excellence, sustainability, good governance, resilience and financial discipline, the key components of what we call the AI-Edge framework. The AI-Edge framework (mentioned below) identifies five measurable outcomes achievable through scalable, sector-specific applications of AI technologies, quantifying the value AI can unlock.

01
Operational excellence

Operational excellence

Optimising asset utilisation, improving ROI, and boosting quality and throughput for greater efficiency in service delivery and infrastructure.

02
Sustainability

Sustainability

Climate-friendly innovations and inclusive, localised solutions that ensure environmentally responsible and equitable growth tailored to diverse regional and community contexts.

03
Good governance

Good governance

Enhancing transparency, accountability, and citizen participation to strengthen democratic processes and trust in AI-powered systems.

04
Resilience

Resilience

Building robust systems through product and geographic diversification to withstand geopolitical risks and supply chain disruptions.

05
Financial discipline

Financial discipline

Promoting better savings, financial independence, and prudent resource use to empower individuals and institutions economically.

This framework shifts the global AI conversation beyond pure innovation and efficiency to one that also prioritises societal value, climate responsibility, and fiscal prudence.

In doing so, the framework helps set new norms— such as judging algorithms not only by accuracy and speed, but also by how well they strengthen systems, safeguard the public interest and deliver durable, measurable value.

Discussion

For the Global South, it offers a practical blueprint for harnessing AI in a way that is inclusive and institutionally grounded.

For advanced economies, it provides a fresh paradigm addressing rising concerns around AI's environmental footprint, ethical use, and economic returns.

Sources

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  2. 2. https://niti.gov.in/sites/default/files/2025-09/AI-for-Viksit-Bharat-the-opportunity-for-accelerated-economic-growth.pdf
  3. 3. https://niti.gov.in/sites/default/files/2025-09/AI-for-Viksit-Bharat-the-opportunity-for-accelerated-economic-growth.pdf
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  8. 8. https://www.indiabudget.gov.in/economicsurvey/doc/echapter.pdf
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  13. 13. The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a government-backed initiative established to facilitate easier access to collateral-free credit for micro and small enterprises in India. It provides a guarantee cover to lending institutions against credit losses, encouraging banks and non-banking financial companies to extend loans to eligible MSMEs without requiring collateral security. The scheme aims to reduce the financial barriers faced by small businesses in obtaining formal financing and promote their growth and development.
  14. 14. https://www.expresshealthcare.in/hospital-infra/bridging-the-urban-rural-divide/445455/#:~:text=Abrarali%20Dalal%2C%20Director%20and%20CEO,hospitals%20holding%2063.5%20per%20cent.
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