Generative AI Projected to Contribute $1.5 Trillion to India's GDP by FY30, Says Ernst & Young Report - written by Harsha varthini.B (Managing Editor, Bisjhintus News)

Generative AI has the potential to make a significant economic impact in India, adding a cumulative $1.2-1.5 trillion to the country's GDP over the next seven years, according to a report by Ernst & Young India. Titled 'The AIdea of India: Generative AI's Potential to Accelerate India's Digital Transformation,' the report sheds light on the industry's readiness and challenges in adopting Generative AI (Gen AI).

The report indicates that Gen AI has the potential to contribute a cumulative $1.2-1.5 trillion to India's GDP by FY29-30. It forecasts that by fully leveraging Gen AI technology and its applications across various sectors, India could potentially add $359-438 billion in FY29-30 alone, representing a 5.9-7.2% increase over the baseline GDP.

Sectors such as business services, encompassing IT, legal, consulting, outsourcing, rental of machinery & equipment, financial services, education, retail, and healthcare, are expected to account for nearly 69% of the overall impact.

The report emphasizes the transformative power of Gen AI and its potential to fuel India's digital evolution. As the nation continues to embrace advanced technologies, the widespread adoption of Generative AI is positioned to drive substantial economic growth, providing new opportunities and addressing challenges across various industries.

In summary, Generative AI emerges as a key driver for India's economic advancement, with the potential to significantly contribute to GDP growth and enhance the country's digital landscape.