Artificial intelligence could contribute up to $79.1 billion to India’s GDP over the next decade, as young Indians show strong interest in adopting AI for education and employment.
Artificial intelligence (AI) has the potential to become a major driver of India's economic growth, with a new report estimating that the technology could contribute $79.1 billion to the country's gross domestic product (GDP) over the next ten years.
According to an analysis by Ayre Think Tank, India ranks 11th among 56 Commonwealth countries in terms of its AI landscape. The report highlights the country's large young population, growing digital infrastructure and enthusiasm for AI adoption as important factors supporting its potential.
However, it also points to challenges such as unequal access to digital devices, informal employment and the need to develop practical technology-related skills.
India's position in the Commonwealth's artificial intelligence landscape is supported by its substantial youth population. The country has approximately 382 million people aged between 15 and 29, representing more than half of the Commonwealth's total youth population of 732 million.
This large demographic creates significant opportunities for AI adoption across education, employment and business activities.
The report suggests that India's growing digital ecosystem and expanding access to internet services could help accelerate the use of artificial intelligence across different sectors.
The report found considerable enthusiasm for artificial intelligence among India's younger population.
Nearly 89% of young Indians expressed interest in using AI tools for educational or professional purposes within the next 12 months. Additionally, more than 60% said they were confident about managing their interactions with AI-based technologies.
This growing interest indicates that young people are increasingly viewing AI as a useful tool for learning, improving productivity and preparing for future employment opportunities.
However, the report also highlighted a gap between internet availability and individual access to digital devices.
India's expanding digital infrastructure is considered an important advantage in its efforts to increase AI adoption. Widespread 4G connectivity and affordable mobile data have made digital services more accessible to a large section of the population.
Despite this progress, approximately one-third of young people still do not own a mobile phone, according to the report.
This highlights the need to improve access to personal devices so that more young Indians can benefit from AI-powered education, training and employment opportunities.
The Ayre Think Tank report estimates that artificial intelligence could generate substantial economic benefits for India over the next decade. Under its moderate projection, AI could increase India's GDP by approximately $79.1 billion after ten years.
The report also presents two alternative growth scenarios:
Conservative estimate: AI could contribute around $39.6 billion to India's GDP.
Moderate estimate: The potential contribution could reach $79.1 billion.
Optimistic estimate: The economic benefit could rise to nearly $118.7 billion.
Based on these projections, India represents the second-largest economic opportunity among Commonwealth countries in terms of potential AI-driven growth.
Despite the promising outlook, the report cautioned that India must address several labour market challenges to fully benefit from artificial intelligence.
Around 30% of young people are not currently engaged in employment, education or training. Furthermore, nearly 86% of young workers are employed in the informal sector.
These conditions could make it difficult for a large section of the workforce to access the benefits of AI-driven economic transformation.
Developing relevant skills, improving access to formal employment and creating pathways from training programmes to actual jobs will therefore be essential.
Calvin Ayre, founder of Ayre Think Tank, highlighted India's efforts to convert growing interest in artificial intelligence into employment opportunities.
He noted that Prime Minister Narendra Modi announced plans in August 2026 to train 10 million young people in AI skills within one year.
In September, the government also introduced AI training programmes in partnership with Intel India. These initiatives aim to provide practical knowledge and prepare young people for emerging technology-driven careers.
According to Ayre, such programmes could help transform India's enthusiasm for AI into employment opportunities, business development and broader economic growth.
The report outlined five key areas that governments should focus on to ensure artificial intelligence delivers inclusive economic benefits:
Expand affordable digital access: Make technology and internet connectivity accessible to more people.
Promote practical education: Strengthen skills-based learning to prepare students and workers for AI-related roles.
Connect training with employment: Develop better pathways that help people move from skill development programmes into jobs.
Develop locally relevant AI tools: Encourage AI solutions that support regional languages and address local requirements.
Strengthen user safeguards: Establish mechanisms that allow individuals to question and challenge decisions made through automated systems.
Conclusion
Artificial intelligence could become an important contributor to India's economic growth, potentially adding $79.1 billion to GDP over the next decade. However, achieving this opportunity will depend on improving digital access, strengthening workforce skills and creating employment pathways. Government initiatives and inclusive AI development will play a crucial role in ensuring that the benefits reach a wider section of the population.