Gen AI To Add $1.5 Tn To India's GDP By 2030: Report
Generative Artificial Intelligence (Gen AI) is poised to become a powerhouse for India's economic growth, potentially injecting USD 1.2-1.5 trillion into the nation's Gross Domestic Product (GDP) over the next seven years, according to a EY India report.
The report foresees that by fully embracing Gen AI technology and its applications across diverse sectors, India could witness a substantial boost, adding USD 359-438 billion to the GDP by the fiscal year 2029-30 alone. This reflects a significant 5.9 per cent to 7.2 per cent increase beyond the baseline GDP, primarily fueled by sectors such as business services, financial services, education, retail and healthcare.
The anticipated impact extends beyond mere economic figures, promising enhancements in workforce productivity, heightened operational efficiency, and more personalized customer engagement. However, despite recognising the pivotal role of Gen AI, the report reveals that 75 per cent of organisations express a low to moderate level of readiness to harness its benefits.
A notable 52 per cent of organisations cite a skills gap as a major obstacle, underscoring the urgent need for upskilling the workforce. Additionally, 47 per cent struggle with the availability of clear use cases for Gen AI, signaling a need for further clarity and understanding of its potential applications.
Interestingly, only 36 per cent of organisations perceive data privacy as a significant risk associated with Gen AI, suggesting a relatively lower level of concern in this area.
