How Gen AI can add up to $1.5 trillion to India’s economy by 2030

A new report by EY India and NASSCOM reveals that the generation of Indians born after 2010, dubbed Gen AI, will be the driving force behind India’s economic growth in the next decade. The report estimates that Gen AI will contribute to 20-25% of India’s GDP by 2030, by leveraging AI technologies in various sectors such as education, healthcare, agriculture, and entertainment.

Gen AI is the term coined by EY and NASSCOM to describe the generation of Indians who are growing up with AI as an integral part of their lives. They are digital natives who are comfortable with using voice assistants, smart devices, online learning platforms, and social media. They are also the future innovators, entrepreneurs, and leaders who will shape the AI landscape in India and beyond.

According to the report, Gen AI is expected to reach 440 million by 2030, accounting for 27% of India’s population. They will have a significant impact on the demand and supply sides of the economy, as they will consume AI-enabled products and services, and also create and deliver them.

The report projects that Gen AI will add the equivalent of $1.2-1.5 trillion to India’s GDP by 2030, by enhancing productivity, innovation, and inclusion. The report identifies eight key areas that will accelerate India’s growth over the next decade, with the help of Gen AI and AI technologies. These are:

It can improve the quality and accessibility of education, by enabling personalized learning, adaptive assessment, and interactive content. AI can also help bridge the skill gap and prepare Gen AI for the future of work.

It can improve the efficiency and affordability of healthcare, by enabling remote diagnosis, telemedicine, and preventive care. AI can also help address the challenges of chronic diseases, mental health, and the aging population.

They can improve the productivity and sustainability of agriculture, by enabling precision farming, crop monitoring, and supply chain optimization. AI can also help farmers cope with the effects of climate change, pests, and diseases.

They can enhance the quality and diversity of entertainment, by enabling content creation, recommendation, and personalization. AI can also help create immersive and interactive experiences, such as virtual reality and augmented reality.

It can improve the efficiency and profitability of retail, by enabling demand forecasting, inventory management, and pricing optimization. AI can also help create customer loyalty, by enabling product discovery, recommendation, and personalization.

They can improve the quality and competitiveness of manufacturing, by enabling predictive maintenance, quality control, and process optimization. AI can also help create new products and services, by enabling design automation, additive manufacturing, and digital twins.

It can improve the accessibility and security of financial services, by enabling credit scoring, fraud detection, and risk management. AI can also help create new business models and opportunities, by enabling robo-advisory, blockchain, and digital currencies.

They can improve the effectiveness and transparency of public services, by enabling smart governance, e-governance, and citizen engagement. AI can also help address social and environmental issues, such as poverty, inequality, and pollution.

It needs to be aware of the risks and responsibilities of sharing and using data, and the need to protect their personal and sensitive information from misuse and breaches. Gen AI needs to be mindful of the ethical and social implications of using and creating AI, and the need to ensure that AI is fair, accountable, and transparent. Gen AI needs to be informed of the legal and regulatory frameworks that govern AI, and the need to comply with the standards and norms that ensure the safety and quality of AI.

It has the opportunity to collaborate and innovate with other stakeholders, such as academia, industry, government, and civil society, to co-create and co-deliver AI solutions that benefit society and the economy.

The AI has the opportunity to include and empower the marginalized and underserved segments of society, such as women, rural, and low-income groups, by providing them access to AI-enabled products and services that improve their lives and livelihoods. Gen AI has the opportunity to lead and influence the AI agenda in India and the world, by showcasing their talent, creativity, and vision, and by contributing to the global AI community and ecosystem.

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